Article Archives >> Ready Reference >> March 2003
Preview of Article:
Charities Must
Avoid Excess Benefit Transactions
Intermediate Sanctions statute imposes tax on "disqualified
persons" who receive more from a transaction with a nonprofit
than they give in return.
Excerpt
Excess Benefit Transactions
can trigger serious consequences for all involved. Happily, the
IRS provides very simple guidelines for investigating and approving
business deals. These guidelines also constitute solid business
practice, even in the negotiation of an arm's-length deal that cannot
be an Excess Benefit Transaction.
Article Archives >> Ready Reference >> March 2003
