Integrated Auxiliaries: Tax Privileges and Qualification

An integrated auxiliary is a creature of tax law:  in a nutshell, it is typically a separately formed legal entity operating a ministry extension of a church or other house of worship.  Integrated auxiliaries may range from an afterschool sports ministry to more complex elder care or housing programs.  Because churches are exempt from the initial exemption and annual Form 990 filing requirements under Section 501(c)(3), so too are churches’ integrated auxiliaries.  These significant benefits warrant careful evaluation with respect to formation of church-related organizations and their tax compliant operations.

Immunity or Not? Charitable Tort Liability Limits in Modern Times

When may a nonprofit charity be held liable for personal injuries to others caused by its agents?  In legal parlance, this is known as “tort” liability – i.e., a civil wrong arising from negligence or intentional wrongdoing of an organization or its agents.  A charity’s “agents” may be its employees, directors, officers, and even other volunteers – that is, a person acting under the organization’s authority. Such potential tort liability is why nonprofits adopt safety standards and carry liability insurance, as they ought

Giving Thanks for Charitable Tax Exemption

Have you ever wondered why charities enjoy special tax exemption privileges?  Or on a deeper level, how the word “charity” came to be defined by the IRS, for Section 501(c)(3) purposes?  This article provides a short historical primer on the evolution of the term “charity,” special aspects for exempt religious organizations, and related tax theories in brief.