Charitable Donations of LLC and Limited Partnership Interests to Nonprofits
Avoiding Negative Tax Consequences for Public Charities, Private Foundations and Donor-Advised Funds
Recording of a 110-minute CPE webinar with Q&A
This course will provide nonprofit organization professionals and counsel with a practical guide to the planning and reporting implications involved when a donor contemplates gifting an interest in a partnership or an LLC to an exempt organization. The panel will outline gifting impacts to donors, detail the due diligence requirements and possible tax consequences to the donee charity, and offer operational insights. The webinar will also describe the differences in treatment between gifts to public charities vs. gifts to private foundations.
- Structure of partnership or LLC interest donations
- Cash flow considerations
- Due diligence requirements by donee charity
- UBTI traps
- Factors unique to private foundations and donor advised funds
The panel will discuss these and other important issues:
- What are the benefits—and risks—of charitable contributions of partnership and LLC interests to an exempt organization?
- What due diligence must the exempt organization advisers undergo to ensure that a partnership or LLC interest contribution does not involve tax, operational or cash-flow risk to the donee charity?
- What are the factors unique to private foundations and donor advised funds that impact charitable contributions of partnership or LLC interests?
- How should an exempt organization structure a donative transaction of a partnership or LLC interest?
Michael I. Sanders
Mr. Sanders focuses his practice in the area of taxation, particularly in matters affecting partnerships, limited... | Read More
Mr. Sanders focuses his practice in the area of taxation, particularly in matters affecting partnerships, limited liability companies, S-corporations, real estate, tax controversy, and estate planning, including trusts and estates. He also has a large practice in the area of exempt organizations involving healthcare and low-income housing, associations and joint ventures between for-profits and nonprofits, as well as structuring New Markets Tax Credit ("NMTC") and Historic Tax Credit ("HTC") transactions. He is the author of Joint Ventures Involving Tax-Exempt Organizations (3rd Ed., 2007; 4th Ed., 2013) which was recently cited by the majority opinion in the widely covered U.S. Supreme Court decision in Burwell v. Hobby Lobby Stores, Inc. He previously served as an attorney-advisor to the assistant secretary of tax policy at the Office of Tax Legislative Counsel.Close
Amanda H. Nussbaum
Ms. Nussbaum advises not-for-profit clients on matters such as applying for and maintaining exemption from federal... | Read More
Ms. Nussbaum advises not-for-profit clients on matters such as applying for and maintaining exemption from federal income tax, minimizing unrelated business taxable income, structuring joint ventures and partnerships with taxable entities and using exempt and for-profit subsidiaries. She also represents many types of investors, including tax-exempt and non-U.S. investors, with their investments in private investment funds. Her practice also focuses on planning for and the structuring of domestic and international private investment funds, including venture capital, buyout, real estate and hedge funds, as well as advising those funds on investment activities and operational issues.Close
Richard F. Riley, Jr.
Foley & Lardner
Mr. Riley is a member of his firm's Taxation practice. He focuses on tax-exempt and nonprofit organizations;... | Read More
Mr. Riley is a member of his firm's Taxation practice. He focuses on tax-exempt and nonprofit organizations; taxation of insurance companies; taxation of railroad companies; employment and withholding taxes; and tax litigation at the administrative, trial, and appellate level.Close