Putting Things Together: Subsidiaries, Complex Organizational Structures, Joint Ventures, and Joint Funding Vehicles

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35th Annual Nonprofit Organizations Institute, Austin, Texas, 01/19/2018 Co-written and co-presented with John F. Crawford

Charities can enhance the depth and breadth of their operations and impact by utilizing subsidiaries, affiliates, and other joint venture vehicles.  This paper and presentation examine choice of form, tax status of the vehicle, and how different options affect the exempt organization and its tax status, including a look at joint venture and funding vehicles along with fundraising and transfer pricing issues.

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.