Tax-Exempt Organizations

Bottom Line Impact

Blank Rome’s tax-exempt organizations attorneys advise individuals and nonprofit corporations and associations—including hospitals, universities, private foundations, and charitable trusts—on tax, trust and estate, healthcare, and corporate issues, including:

  • Investments in joint ventures (with nonprofits and for-profits)
  • Charitable giving
  • Tax controversies
  • Involvement in lobbying and political activities
  • Subsidiary organizations
  • Unrelated business income tax
  • Complex real estate transactions
  • Corporate sponsorship and intermediate sanctions
  • Reviewing investments in private equity funds, real estate funds, hedge funds, lending funds, and other private investment funds
  • Other excise taxes under Chapter 42 of the Internal Revenue Code

The team includes several nationally known attorneys with a broad understanding of the business and legal complexities which face tax-exempt institutions. The tax-exempt group includes a former U.S. Tax Court attorney-adviser; a former attorney-adviser to the assistant secretary of tax policy in the U.S. Treasury’s Office of Tax Legislative Counsel; a former U.S. Department of Justice trial attorney; the author of the highly regarded book; Joint Ventures Involving Tax Exempt Organizations; a tax professor; and the author of a treatise on “Tax Planning for Highly Compensated Individuals.”

Select Engagements

  • Represented exempt organizations before the IRS and state tax authorities in examinations of tax returns and litigation of tax controversies.
  • Litigated tax controversies before a variety of federal courts.
  • Advised private foundations on self-dealing, program-related investments and expenditure responsibility.
  • Obtained IRS “determination letters” that exempt organizations from federal taxation.
  • Negotiated resolutions of IRS controversies with top officials in the Office of Chief Counsel and top officials of the Tax Exempt & Government Entities Division.
  • Minimized unrelated business taxable income.
  • Structured joint ventures and other strategic alliances between exempt organizations and for-profit enterprises, including healthcare entities.
  • Established taxable subsidiaries and other affiliates of exempt organizations, including healthcare organizations.
  • Structured licensing arrangements between exempt organizations and for-profit enterprises.
  • Advised on tax aspects of Internet activities.
  • Advised on executive compensation in light of intermediate sanctions, and successfully negotiated a closing agreement resolving all Section 4958 issues.
  • Established politically active exempt organizations as social welfare organizations, labor organizations, or political organizations, depending on which is most advantageous.
  • Advised exempt organizations on international philanthropy, planned giving programs, and structuring charitable gifts.
  • Representation of university endowments and private foundations with respect to investments in private investment funds.