The Law of Tax-Exempt Organizations, 10th Edition 2014 Cumulative Supplement

CHAPTER ELEVEN

Other Charitable Organizations

*§ 11.2 Amateur Sports Organizations

§11.7 Literary Organizations

§ 11.8 Donor-Advised Funds

(a) Donor-Advised Fund Basics

*(b) Statutory Criteria

(c) Treasury Department Report (New)

(d) Congressional Research Service Report (New)

§ 11.2 AMATEUR SPORTS ORGANIZATIONS

*p. 297. Insert as second and third complete paragraphs, before heading:

Booster clubs and other entities that provide financial support to tax-exempt amateur sports organizations are not likely to achieve exemption in accordance with these rules. In fact, they may not qualify for exemption at all. For example, if the fundraising is for the direct benefit of individual team members and their parents, the IRS will dismiss the organization as a mere “tool” for providing this form of private benefit to these individuals; the IRS may view the parents in these situations as insiders with respect to the organization and deny exemption on the basis of the private inurement doctrine.^18.1

§ 11.7 LITERARY ORGANIZATIONS

p. 302, n. 69. Delete sentence and substitute:

Examples of organizations that failed to gain exemption because they did not meet this start-up capital requirement are in Florida Independent Colleges & Universities Risk Management Ass'n v. United States, 850 F. Supp. 2d 125 (D.D.C. 2012), and Priv. Ltr. Rul. 200941038.

§ 11.8 DONOR-ADVISED FUNDS

(a) Donor-Advised Fund Basics

p. 303, n. 78. Insert following existing text:

A similar situation was presented in a case in ...