Social Enterprise and Nonprofit Law Blog

the law of generating social benefit

Moving Out Of New York

With the New Year comes new beginnings. I’ve noticed one such new beginning recurring regularly in the New York nonprofit community. I call it “Moving Out of New York.”  It happens elsewhere too of course, but wherever it occurs, it signals a …

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IRS Denies Farmers Market Tax-Exempt Status

The ongoing confusion in locating the line between charitable/tax-exempt vs. non-charitable/taxable business activity for nonprofits was highlighted by the IRS’s October 2015 denial of 501(c)(3) tax-exempt status to a farmers market. (PLR 201601014) The ruling illuminates how the IRS determines whether an …

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Form 990-PF Filers Beware! The Tricky Double Negative of Part VII-B

Paying compensation to directors of tax exempt private foundations can be a delicate matter, especially for relatively modest family foundations.  Most foundation managers are aware that such compensation is generally permissible under the Internal Revenue Code, as long as the compensation is …

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