Joint Ventures Involving Tax-Exempt Organizations

Preface xxv
 
Acknowledgments xxix
 
About the Author xxxi
 
Chapter 1: Introduction: Joint Ventures Involving Exempt Organizations 1
 
1.1 Introduction 1
 
1.2 Joint Ventures in General 3
 
1.3 Healthcare Joint Ventures 6
 
1.4 University Joint Ventures 8
 
1.5 Low-Income Housing and New Market Tax Credit Joint Ventures 11
 
1.6 Conservation Joint Ventures 14
 
1.7 Joint Ventures as Accomodating Parties to Impermissible Tax Shelters 15
 
1.8 Rev. Rul. 98-15 and Joint Venture Structure 16
 
1.9 Form 990 and Good Governance 20
 
1.10 Ancillary Joint Ventures: Rev. Rul. 2004-51 21
 
1.11 Engaging in a Joint Venture: The Structural Choices and Role of the Charity 21
 
1.12 Partnerships with Other Exempt Organizations 24
 
1.13 Transfer of Control of Supporting Organization to Another Tax-Exempt Organization 25
 
1.14 The Exempt Organization as a Lender or Ground Lessor 26
 
1.15 Partnership Taxation 28
 
1.16 UBIT Implications from Partnership Activities 31
 
1.17 Use of a Subsidiary as Participant in a Joint Venture 33
 
1.18 Limitation on Preferred Returns 35
 
1.19 Sharing Staff and/or Facilities: Shared Services Agreement 38
 
1.20 ''Intangibles'' Licensed by Nonprofit to For-Profit Subsidiary or Joint Venture 39
 
1.21 Private Inurement and Private Benefit 40
 
1.22 Limitation on Private Foundation's Activities that Limit Excess Business Holdings 44
 
1.23 International Joint Ventures 45
 
1.24 Other Developments 46
 
Chapter 2: Taxation of Charitable Organizations 49
 
2.1 Introduction 50
 
2.2 Categories of Exempt Organizations 52
 
2.3 501(c)(3) Organizations: Statutory Requirements 54
 
2.4 Charitable Organizations: General Requirements 97
 
2.5 Categories of Charitable Organizations 100
 
2.6 Application for Exemption

MICHAEL I. SANDERS is the lead partner of Blank Rome's Washington office's tax group with a large practice in the area of exempt organizations involving healthcare and low-income housing, associations and joint ventures between for-profits and nonprofits, as well as structuring New Markets Tax Credit transactions. He is also an adjunct professor at The George Washington University Law School and Georgetown University Law Center. He was recently honored in 2010 by The George Washington University Law School for his 35 years of teaching.