Mastering Form 990 Schedule A: Protecting Public Charity Status, IRC 509 Public Support Test Calculations and Reporting

Recording of a 110-minute CPE webinar with Q&A


Conducted on Tuesday, October 17, 2017

Recorded event now available

or call 1-800-926-7926
Program Materials

This webinar will provide nonprofit advisers with a comprehensive guide to reporting the public support tests of IRC Section 509(a) on Schedule A of the Form 990 Exempt Organization Information Return.

Description

Advisers to nonprofits must ensure exempt organizations maintain their status as a “public charity” under IRS rules. Exempt organizations can realize greater tax benefits by qualifying as a public charity rather than meeting the more complex and burdensome regulations for private foundations. Advisers need to thoroughly understand the rules, calculations and reporting requirements to verify public charity status.

The regulations provide several tests for maintaining public charity status. Nonprofits may be set up as a “supporting organization” of another public charity, or they must meet one of the “public support tests,” by verifying that a substantial portion of the entity’s total receipts come from “public support.” Exempt organizations must conduct this test annually, reporting the support the entity received in the current tax year and the four prior years.

Public support test calculations are reported on Schedule A of Form 990, one of the most complex schedules on the Exempt Organization Tax Return. Because an exempt organization may not know whether it qualifies as a public charity until it calculates public support at the tax year’s end, advisers must keep public support calculations current to protect the client’s public charity status.

Listen as our experienced panel offers a comprehensive and practical guide to mastering the public support calculation, reporting and planning implications for exempt organizations.

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Outline

  1. Introduction of Public Charities (specific type, publicly-supported, and supporting organization) and Private Foundations
  2. Publicly-supported organizations two tests
    1. Which test to use?
    2. 509(a)(1) and 170(b)(1)(A)(vi) — Part II of Schedule
      1. Mechanics of numerator and denominator
      2. 10% facts and circumstances test
    3. 509(a)(2)Part III of Schedule A
      1. Mechanics of numerator and denominator
      2. Investment income limitation
  3. Planning avoiding (or not) private foundation status
  4. Advantages and Disadvantages to private foundation status
  5. Transition to private foundation status
    1. Obtaining waiver of private foundation excise taxes
    2. Other issues/considerations

Benefits

The panel will discuss these and other important issues:

  • The “10 percent facts and circumstances test” for organizations that do not qualify for public charity status under the 1/3 support rule
  • Types of revenues and receipts that present special problems in determining level of public support
  • Obtaining waiver of private foundation excise taxes where the organization unexpectedly fails the public support test

Faculty

Mittermaier, Ingrid
Ingrid Mittermaier

Principal
Adler & Colvin

Ms. Mittermaier focuses on nonprofit mergers and asset sales. Before joining her firm, she practiced with several...  |  Read More

Ruvelson, Richard
Richard Ruvelson
Principal
WithumSmith+Brown

Mr. Ruvelson has more than 30 years of experience in providing tax services to non-profit clients, including labor...  |  Read More

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