Exempt organizations face specific tax issues and complexities stemming from their operation’s unique nature and the rules governing their tax-exempt status.
RSM’s exempt organizations and philanthropy specialists in our Washington National Tax practice provide tax-technical transactional analysis and consulting to exempt organizations and their donors. Among the types of exempt organizations, we have experience serving are:
In addition, we represent tax-exempt organizations before the IRS with respect to private letter ruling requests, determination letters and IRS examinations.
Also, we regularly advise individuals, family offices, partnerships and corporations on charitable giving and philanthropy. We advise private equity, hedge funds and other partnerships on issues involving tax-exempt investors, including the use of blocker corporations, transitory indebtedness and unrelated business taxable income.
Alternative investments
Complex investments require sophisticated planning. We advise exempt organizations and investment funds on the structuring and tax implications of alternative investments for tax-exempt investors.
Charitable giving
Our philanthropic advisors assist individuals, corporations and partnerships with their charitable planning, including advising on the substantiation requirements and the tax impact of charitable contribution deductions, conservation easements and bargain sales. We also consult with exempt organizations to ensure their recordkeeping and donation policies satisfy tax law requirements.
Compensation and benefits
We review exempt organizations’ compensation and advise on executive compensation packages, provide compensation studies, and evaluate compensation arrangements for excess executive compensation.
IRS compliance checks, notices, examinations, and appeals
When the IRS Tax Exempt and Government Entities (TE/GE) Division contacts taxpayers regarding possible noncompliance, we support the exempt organizations by representing them during
IRS exams and appeals and responding to IRS inquiries.
IRS rulings and determinations
Many exempt organizations must apply for exempt status recognition, while others may choose to do so. We help entities navigate lengthy applications and obtain IRS determination letters. We also advise charitable organizations on their foundation classification and assist them in completing IRS miscellaneous determination requests.
Joint ventures, mergers, acquisitions and contractual relationships
Transactions with other exempt organizations or taxable entities require planning and ongoing oversight to evaluate potential tax issues, including unrelated business income or impact on tax-exempt statuses.
Legislative and regulatory matters
In a dynamic regulatory environment, our team tracks legislative and regulatory developments to support you with the most current guidance.
Private foundations
Independent, family and corporate foundations benefit from our guidance on the full range of tax issues from formation to dissolution, whether on sophisticated transactions or day-to-day operations. These include self-dealing, expenditure responsibility, advance approval of scholarship procedures, and maintaining tax exemption.
