Congress Seeks to Restrain IRS on “Dark Money” Schedule B Donor Disclosures

Are tax-exempt organizations required to disclose their major donors on their IRS Form 990 Schedule B’s, or not?  In July 2018, the IRS issued Revenue Procedure 2018-38, answering “no” for Section 501(c)(4) and other tax-exempt organizations, but leaving the disclosure requirement intact for Section 501(c)(3) organizations and Section 527 political action committees (known as PACs).

The Control Question for Nonprofit Joint Ventures: What is Enough?

Has your nonprofit ever engaged in joint activities with a business, perhaps with resulting revenues?  Such arrangements are increasingly common for many Section 501(c)(3) organizations. A key legal requirement is that the tax-exempt organization maintain control of the project, so that its charitable resources will be “exclusively” used in furtherance of tax-exempt purposes, as required by the Internal Revenue Code.  What does “control” mean for IRS purposes, and what happens to resulting revenues? Careful planning is essential to answering these questions for optimal tax compliance.