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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Accounting

Date & Time
  • event Date

    Thursday, October 21, 2021

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    110 minutes

Credit Information

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$197.00
CPE
ALL

This course 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.

Faculty

Richard Ruvelson
Principal
Withum Smith + Brown, PC

Mr. Ruvelson has more than 30 years of experience in providing tax services to non-profit clients, including labor unions, multiemployer benefit plans, private foundations and a wide variety of public charities, including private colleges, hospitals, religious and cultural organizations, their supporting organizations and other affiliates. He has worked closely with both small and large clients on a wide range of non-profit issues including tax exemption, unrelated business income tax, public support, charitable giving and substantiation, independent contractor issues, and Form 990, Form 990-PF and Form 990-T reporting. Outside of public accounting, he has served as Tax Manager of the University of Washington and Treasurer and Finance Director of The California Endowment. He has spoken on a variety of nonprofit tax issues at a number of accounting and nonprofit industry conferences, taught at firm internal and external training and, also, taught Law of Tax-Exempts in the MBT program of the University of Minnesota’s Carlson School of Management. Mr. Ruvelson is licensed to practice law in Minnesota.

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Ingrid Mittermaier
Principal
Adler & Colvin

Ms. Mittermaier focuses on nonprofit mergers and asset sales. Before joining her firm, she practiced with several other law firms in the areas of transactional law, state and local tax law, and nonprofit law. She lectures regularly at law conferences and seminars, and has been a member of the adjunct faculty at the University of San Francisco in the College of Professional Studies, teaching a course in the Master of Nonprofit Administration program. Ms. Mittermaier is a past member of the Executive Committee of the State Bar of California's Taxation Section, and is also a past Chair of the Tax-Exempt Organizations Committee of the Taxation Section.

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Description

Advisers to nonprofits must ensure charitable exempt organizations maintain their status as public charities under Internal Revenue Code rules. Charitable 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 religious organization, school, or hospital, or as a supporting organization of another public charity. Alternatively, 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.

Outline

  1. Introduction of public charities (specific type, publicly supported, and supporting organization) and private foundations
  2. Publicly supported organizations two tests
    • Which test to use?
    • 509(a)(1) and 170(b)(1)(A)(vi)--Part II of Schedule
      • Mechanics of numerator and denominator
      • 10% facts and circumstances test
    • 509(a)(2) Part III of Schedule A
      • Mechanics of numerator and denominator
      • Investment income limitation
    • Unusual grants
  3. Planning avoiding (or not) private foundation status
  4. Advantages and disadvantages to private foundation status
  5. Transition to private foundation status
    • Obtaining a waiver of private foundation excise taxes
    • 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 the level of public support
  • Obtaining a waiver of private foundation excise taxes where the organization unexpectedly fails the public support test
  • Grants that meet the criteria for unusual grants

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Determine when an exempt organization meets public support under the tests provided by IRC Sections 509(a)(1) and 170(b)(a)(A)(vi) or 509(a)(2)
  • Identify information required to complete Schedule A of Form 990 Exempt Organization Information Return
  • Recognize planning steps to avoid failing the public support test
  • Document a facts and circumstances request for waiver of private foundation excise taxes and/or penalties in case of an exempt organization's unexpected failure to meet the public support test

  • Field of Study: Accounting
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite: Three years+ non-profit business or public firm experience at mid-level within the organization, preparing financial statements and/or complex tax forms and schedules, supervising other preparers/accountants. Specific knowledge and understanding of Form 990 and tax-exempt entity related organization rules; familiarity with the concept of "public support" in the context of tax-exempt entity tax reporting.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).