Topic Index: Supporting Organizations

Hangover for Type III SOs – Treasury Issues Final Regulations for Supporting Organizations

Treasury’s holiday gift for the 2012 season came in the form of final and temporary regulations for supporting organizations (“SOs”) published December 28, 2012.1 While a few provisions relate to other varieties of SOs, by far the bulk of the new regulations relate to “Type III” SOs “operated in connection with” publicly supported organizations,2 an […]

New Regulations for Type III SOs

On Dec. 28, 2012, the Internal Revenue Service published final regulations regarding Type III supporting organizations (SOs), along with temporary regulations.1 A Type III SO is one that’s operated in connection with one or more SOs. These regs constitute a culmination of sorts of the IRS’ interest in curbing what it perceived as abusive practices […]

BNA Tax Management Portfolio – Supporting Organizations

Supporting Organizations

Published by: Tax Management Portfolio #459 (BNA) (2009)

Not SO Bad – Proposed Regulations for Type III Supporting Organizations

While few Type III supporting organizations are likely to overjoyed by them, the anxiously awaited Proposed Regulations1 are not really so bad for the most part, and are significantly better than we might have expected, based on recent alarming pronouncements from the IRS.2 The first bit of good news is that the Proposed Regulations drop […]

New ‘Guide Sheets’ on Supporting Organizations

The Pension Protection Act of 2006 (PPA) transformed the familiar landscape of Code Section 509(a)(3) supporting organizations (SOs), and in an unusual outpouring of notices, announcements, memoranda, and other forms of guidance, the Service has been struggling with the many questions raised, but left unanswered, by PPA 2006. Earlier this year, the Service issued its […]

Aftershocks: Update on Supporting Organizations

On August 17, 2006, a major seismic event – the Pension Protection Act of 2006 (PPA) — shook the well-settled topography of Code Section 509(a)(3) supporting organizations (SOs),1 and the aftershocks have continued unabetted since. In an unusually intense outpouring of guidance, announcements, and notices, the Service has been grappling with the many questions left […]

Supporting Organizations After the Pension Protection Act

New rules make Type III organizations considerably less attractive, and present the choice of staying in or getting out. The 37-year old rules governing supporting organizations (SOs) were suddenly and sweepingly altered by the Pension Protection Act of 2006 (the “Act”), signed into law on 8/17/06. The Act reformed not only Type III SOs–those “operated […]

So What’s Left of SOs? – The Pension Protection Act of 2006 and Its Impact on Supporting Organizations

After 37 years virtually without change, the provisions of the Internal Revenue Code of 1986 (“Code”) governing supporting organizations (“SOs”) were revised and expanded in spectacular fashion by the Pension Protection Act of 2006 (“Act”), signed into law on August 17, 2006. Longstanding rules relating to an SO’s requisite “responsiveness” to its supported charities, its […]

A Wake-Up Call for “Type III” Supporting Organizations

After a silence of the better part of two decades, the U.S. Tax Court issued two important decisions late in 2002, Cuddeback v. Comr, T.C. Memo. 2002-300, and Lapham Foundation, Inc., v. Comr, T.C. Memo 2002-293. In both cases, the Tax Court ruled that foundations failed to meet the “integral part” tests relating to “Type […]

SO Much Better?: Supporting organizations may offer the perfect balance of tax benefits and donor control for some planned giving prospects

Consider the following common scenario: An affluent, elderly woman with strong ties to her alma mater wants to make a gift of a significant portion of her assets. Like most donors, her motivations for giving are complex. She has a philanthropic nature, but she also wants the best possible tax deduction for her gift. She’s […]