Creating Subsidiaries of Tax-Exempt Organizations

1159518571-copyState Bar of Texas, 15th Annual Governance of Nonprofit Organizations Course, Austin, Texas, 08/25/2017

Tax-exempt organizations utilize subsidiaries and related organizations for a number of different reasons ranging from management concerns to liability protection to tax necessity. While the nonprofit corporate form is generally used for charitable organizations conducting commercial activities, a number of different forms should be considered for a subsidiary or affiliate organization. This paper and presentation explore many of these considerations while exposing seemingly unforeseen traps, all while being mindful of the ultimate legal issue tax-exempt entities face: “How will this impact our exempt status?”

When Giving Money Isn’t Enough: Direct Charitable Activities of Private Foundations

2015 Tax Seminar (Salk Institute), La Jolla, California

92969426 - CopyYour foundation wants to go beyond its grant-making programs and increase its involvement, perhaps through leveraging your expertise, supplementing your grant-making dollars, and/or investing strategically and programmatically.  But how do you expand while still being subject to the prohibited transaction rules set out in the Internal Revenue Code?  This paper and presentation examine key issues of direct charitable activities, program-related investments, advantages and disadvantages of private operating foundations, and use of separate and subsidiary entities for related activities.

Alternative Operating Structures, Governance Best Practices and Fraud Risk Management

32nd Annual Nonprofit Organizations Institute, Austin, Texas

Many tax-exempt organizations utilize separate or subsidiary organizations to operate one or more charitable programs; however, undertaking this type of venture should not be done without careful planning.  Are you considering an alternative operating structure or do you want to learn more about what this charitable vehicle could do to further your charitable goals?  Use this paper and presentation as tools to guide you through the considerations and options when planning for an alternative operating structure.