The Council submitted comments to the IRS on a proposed rule that outlined a handful of regulations for Type I and Type III supporting organizations.
In-Depth knowledge on Supporting Organizations
In this week's Washington Snapshot: News from the Hill; IRS Releases Proposed Rules for Supporting Organizations; Philanthropy Weighs in on Pennsylvania Budget Impasse; South Carolina, Connecticut Announce New Pay for Success Deals; and more!
On February 19, 2016, the Treasury Department and the Internal Revenue Service issued proposed regulations regarding the prohibition on certain contributions to Type I and Type III supporting organizations and the requirements for Type III supporting organizations. The Council is leading the foundation field’s review and analysis of the proposed regulations. Please share with us (email: firstname.lastname@example.org) how supporting organizations are valuable to your foundation. Your input will be reflected in our analysis and in the comments we submit to the Treasury Department.
The Council has six full-time attorneys with a breadth of experience on staff. This team of experts is a valuable resource to Council members, and is available to provide information on a wide range of topics that impact foundation operations.
The Council opposes any policy proposal that would eliminate types of supporting organizations and reduce the variety and flexibility of charitable giving tools available to foundations and donors alike. Supporting organizations are important charitable tools that donors can use to achieve their specific philanthropic goals. Many of the Council’s members utilize supporting organizations to maximize their impact. Often, a supporting organization manages fundraising or investments for the supported organization to allow it to focus on its core charitable mission, whether grantmaking or providing direct services.
The policy issues that impact philanthropy are wide-ranging. The Council’s team of policy and legal experts regularly monitors and tracks proposals impacting individual giving incentives, tax code provisions that impact the business operations of foundations, IRS regulatory proposals, Administrative actions, policies affecting cross-border philanthropy, public-philanthropic partnership developments, and much more.
Should your supporting organization change its status to an independent public charity.
Definition of all types of supporting organizations and requirements for each under PPA.
The legal and tax implications for community foundations accepting donations from private foundations, and qualifying distributions of taxable expenditures. Additional insight into converting a private foundation into a supporting organization of a community foundation.
On December 28, 2012, the Treasury Department and IRS issued final and temporary regulations on Type III supporting organizations. Simultaneously, proposed regulations were issued regarding payout for Type III non-functionally integrated supporting organizations. This analysis focuses on the areas specifically addressed by the issued regulations.