Legal Compliance Guidance

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All information on this website, and all publications, articles, email correspondence, and telephone consultations provided by Council attorneys and legal staff are intended for informational purposes only and not as part of an attorney-client relationship. Council attorneys are not licensed in every state and cannot provide legal representation. The information is not a substitute for expert legal, tax, or other professional advice tailored to your specific circumstances and may not be relied upon for the purpose of avoiding any penalties that may be imposed under the Internal Revenue Code. Council members may email legal@cof.org with inquiries and for more information.

Displaying 81 - 96 of 171 results

Discretionary Grants by Corporate Foundations

Legal Compliance Guidance
Question:May a corporate foundation allow corporate board members who do not sit on the foundation’s board to designate grants from the corporate foundation? Answer:No. All grants from the corporate foundation must be approved by the corporate foundation’s board of directors. No individual—…

Corporate Disclosure and the Sarbanes-Oxley Act of 2002

Legal Compliance Guidance
What is the Sarbanes-Oxley Act? The Sarbanes-Oxley Act of 2002 was designed to rebuild public trust in the corporate community in the wake of the Enron scandal and other corporate and accounting scandals. Sarbanes-Oxley requires publicly traded companies to adhere to governance standards that…

Accounting for Agency Endowment Funds Held at Community Foundations

Legal Compliance Guidance
Introduction Nonprofits place their endowment funds with community foundations for a variety of reasons, including investment expertise, efficiencies, and access to planned giving advice and services. As nonprofit organizations seek to place their assets and partner with the foundation, questions…

How a Private Foundation Can Use "Friends of" Organizations

Legal Compliance Guidance
U.S. private foundations are increasingly involved in international grantmaking. One way for a private foundation to give overseas is to make grants directly to foreign charities. Many U.S. private foundations, however, may want to consider giving overseas indirectly through a "Friends of"…

Changing Supporting Organization Status

Legal Compliance Guidance
With tighter restrictions on grants to supporting organizations after the PPA, reclassifying into a public charity with fewer restrictions is an option worth considering.   Supporting organizations that meets the public support test can be reclassified as a public charity under section 509(a)(…

Council Summary: Report to Congress on Supporting Organizations and Donor Advised Funds

Legal Compliance Guidance
The Treasury Department released its report on donor advised funds (DAFs) and supporting organizations (SOs) in December of 2011. This report, mandated by the Pension Protection Act of 2006, was due in August 2007. The report is 109 pages, including appendices, and is divided into five chapters:…

990 Filing for Small Public Charities

Legal Compliance Guidance
Under the Pension Protection Act of 2006 (PPA), any organization that is not required to file Form 990 because it is a “small public charity” will be required to submit an annual 990-N report to the IRS. The IRS posted FAQ's with additional information about the filing requirement. A “small public…

Section 4947(a)(2) Split-Interest Trust Reporting

Legal Compliance Guidance
The Pension Protection Act of 2006 (PPA) has introduced filing requirements for split-interest trusts such as charitable remainder trusts and pooled income funds. Which returns are affected? These requirements apply to returns for taxable years beginning after December 31, 2006. What are the…

Public Disclosure of Form 990-T for Private Foundations and Public Charities

Legal Compliance Guidance
Under the Pension Protection Act of 2006 (PPA), the rules for public disclosure of the Form 990-T by public charities and private foundations became identical to those for Form 990. Which forms are affected? Any Form 990-T filed after August 17, 2006. What are the public disclosure requirements…

Contributions of Fractional Interests in Tangible Personal Property

Legal Compliance Guidance
The Pension Protection Act of 2006 (PPA) imposes requirements for determining the charitable deduction permitted for gifts of fractional interests in tangible personal property.  What contributions are affected? These requirements apply to contributions made after August 17, 2006. What is…

Donor Guidance for Non-Cash Charitable Contributions

Legal Compliance Guidance
Contributions of clothing and household items Section 1216 of the Pension Protection Act of 2006 (PPA) imposes requirements for contributions of clothing and household items to charity. The provision is effective for contributions made after the date of enactment (August 17, 2006). In general,…

Tax Reporting for Supporting Organizations

Legal Compliance Guidance
Affected transactions: Returns filed for taxable years ending after August 17, 2006. Are all supporting organizations required to file Form 990? Yes. Prior to the enactment of the Pension Protection Act of 2006, public charities that normally received less than $25,000 in annual gross receipts…

Guidance for Donor Advised Funds, Supporting Organizations, and Employer Disaster Funds

Legal Compliance Guidance
This resource is a Council Summary of IRS Interim Guidance found in IRS Notice 2006-109, issued December 6, 2006, and explains steps for determining supporting organization status, and important information on the employer disaster relief fund exemption. Responding to requests from the Council on…

Provisions Affecting Supporting Organizations

Legal Compliance Guidance
This chart outlines all provisions that affect the operations of supporting organizations.

FAQ: Supporting Organizations

Legal Compliance Guidance, Fundamentals
Summary A supporting organization qualifies as a public charity because it has a close relationship with another publicly supported section 501(c)(3) organization. Based on the relationship of the supporting organization to the public charity it supports, a supporting organization will be…

Permissible Grantees for Donor Advised Funds

Legal Compliance Guidance
This chart details which organizations can receive grants from donor-advised funds and which ones cannot.

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