NYU School of Law
This course analyzes some of the major aspects of federal and state law affecting the nonprofit sector, which accounts for one third of gross national product, and contrasts with government and for-profit sectors. Topics will be chosen from the following:
- policies behind tax exemption;
- rules regulating behavior of charitable organizations in fund raising, in managing their assets, and in providing funds or goods and services;
- liability of charities, directors and volunteers to third parties;
- competition between nonprofit and for-profit entities;
- unrelated business income tax;
- not-for-profit corporate law;
- lobbying and political campaign activities of nonprofit organization rules; and
- current issues.
A significant portion of the course will consider relevant Federal tax questions.
This course focuses on the tax treatment of public and private charities exempt under I.R.C. § 501(c)(3), as well as business leagues, social clubs, and other types of tax-exempt organizations. The course begins with an analysis of the requirements for exemption from federal income tax, including the prohibition on private inurement and the restrictions on lobbying and political campaign activities. It continues with a discussion of the unrelated business income tax and private foundation status and its repercussions.
Prerequisites: Although there are not formal prerequisites, successful completion of courses on Income Taxation of Trusts and Estates, and Estate and Gift Taxation, or the equivalent, is strongly recommended.
Charitable giving in the United States amounts to over $300 billion annually. This course will provide an in-depth analysis of income, estate, and gift tax issues affecting donations to charity. The course will begin with an introduction to policy, technical, and computational issues arising under the principal income tax provision (I.R.C. § 170). It will then consider income tax aspects of charitable giving by trusts and estates, followed by a discussion of transfer tax issues. Attention also will be devoted to more sophisticated forms of giving, including charitable lead trusts and charitable remainder trusts.
This course covers the tax rules governing private foundations (including grant-making / non-operating foundations and operating foundations) and “private foundation alternatives” including donor advised funds (commercial, institutional, and community foundation DAFs), supporting organizations, and for-profit structures (like those used by Omidyar, Zuckerberg / Chan, and Laurene Powell Jobs).