The Law of Tax-Exempt Organizations, 2021 Cumulative Supplement. Bruce R. Hopkins

Читать онлайн книгу.

The Law of Tax-Exempt Organizations, 2021 Cumulative Supplement - Bruce R. Hopkins


Скачать книгу
keep more detailed records.

      The IRS guidance differentiates among employer‐sponsored programs utilizing public charities, donor‐advised funds, and private foundations.

      The IRS states that “[t]o ensure the program is not impermissibly serving the related employer,” these requirements must be met: (1) the class of beneficiaries must constitute a charitable class, (2) the recipients must be selected on the basis of an “objective determination of need,” and (3) the recipients must be selected by an independent selection committee or adequate substitute procedures must be in place to ensure that any benefit to the employer is incidental and tenuous. As to this third requirement, the charity's selection committee is independent if a majority of its members consists of persons who are not in a position to exercise substantial influence over the affairs of the employer.

      If these requirements are met, the public charity's payments to the employer‐sponsor's employees and their family members in response to a disaster or emergency hardship are presumed to be made for charitable purposes and not to result in taxable compensation to the employees.

      In this publication, the IRS states that, even if a private foundation fails to meet all of the requirements of this presumption, “other procedures and standards may be considered to constitute adequate substitutes to ensure that any benefit to the employer is incidental and tenuous, where all the facts and circumstances are taken into account.” By contrast, even if a foundation satisfies the presumption, the IRS reserves the right to review the facts and circumstances to ensure that any benefit to the employer is merely incidental and tenuous. For example, a program “may not be used to induce employees to follow a course of action sought by the employer or designed to relieve the employer of a legal obligation for employee benefits.”

       p. 149, note 97. Insert following existing text:

      The


Скачать книгу