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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Tax Law

Date & Time
  • event Date

    Tuesday, May 14, 2024

  • schedule Time

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

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

  • 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).

$347.00
CLE
CPE
ALL

This CLE/CPE webinar will provide tax and nonprofit professionals a thorough and practical guide to nonprofit and private foundation self-dealing rules and potential tax implications. The panel will describe the federal income tax treatment and detailed requirements for nonprofits and private foundations, the general principles of self-dealing and consequences, and the impact on tax planning, reporting, and compliance.

Faculty

Jennie Hill
Attorney
Nonprofit Solutions, PC

Ms. Hill holds a Bachelor of Arts in history from Macalester College, a Master of Social Work from University of University of Illinois Urbana-Champaign, and a Juris Doctorate from the University of Oklahoma College of Law. She worked as a nonprofit executive for 15 years before returning to law school in 2020 and graduating with honors in 2023. As an attorney at Nonprofit Solutions, she focuses on contract drafting and negotiations, employment law, policy development, staff training, mergers, and state and federal grant compliance.

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JASON J KOHOUT
Partner
Foley & Lardner LLP

Mr. Kohout is chair of the firm’s Family Offices Team and assists families and business owners in areas of tax planning, business succession, and philanthropy. In addition, he works extensively with nonprofit organizations in the areas of governance, fundraising and tax exemption matters. Mr. Kohout’s broad experience, in conjunction with his in-depth knowledge of tax, corporate and trust law, allows him to provide creative and practical solutions for his clients, especially for clients that own businesses or have philanthropic interests or nonprofit organizations focused on governance or fundraising.

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Emmaline S. Jurgena
Associate
Foley & Lardner LLP

Ms. Jurgena is an associate with Foley & Lardner LLP and a member of the firm’s Estate Planning Practice.  She works with high net worth individuals and families in estate and tax planning. Ms. Jurgena also has extensive experience in tax-exempt and charitable issues. Her experience includes: assisting with initial formation, ongoing administration, tax counseling and tax return preparation, assistance with IRS audits, and litigation for a wide variety of tax-exempt organizations including colleges and universities, hospital systems, religious organizations, museums, private foundations, social welfare organizations, and other tax-exempt and nonprofit organizations; developing comprehensive estate plans to make use of available estate, gift, and generation-skipping transfer (GST) tax exemptions; implementing tax planning for estates, trusts, and beneficiaries, including creation and administration of private foundations, charitable remainder trusts, and tax-advantaged charitable giving; and conducting probate and estate administration and assisting in the resolution of trust administration issues in probate court.

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Description

The increased control over distributions and enhanced income and transfer tax advantages have fueled the rise in nonprofits and private foundations as an estate planning vehicle. However, these entities are subject to self-dealing rules that can significantly impact tax planning strategies and must be considered to avoid costly mistakes.

Setting up a nonprofit or private foundation involves creating a separate exempt organization and contributing assets to such organization. Once established, for some assets the tax impact can be significantly reduced. However, these organizations must abide by strict self-dealing rules that prevent assets from being misappropriated for personal gain.

The self-dealing rules prohibit most forms of financial interactions between a nonprofit or private foundation and any disqualified person. Section 4941(d) defines "self-dealing," as "any direct or indirect furnishing of goods, services or facilities between a private foundation and a disqualified person;" however, if the goods, services, or facilities are provided at no charge and used exclusively for the purposes specified in IRC Section 501(c)(3), such transactions likely will not be considered "self dealing."

Listen as our experienced panel provides a thorough and practical guide to the federal income tax treatment and detailed requirements for nonprofits and private foundations, the general principles of self-dealing and potential consequences, and their impact on tax planning, reporting, and compliance.

Outline

  1. Overview of IRS self-dealing rules
  2. Impact of self-dealing rules on tax planning and compliance
  3. Reporting requirements, operational risks, and opportunities
  4. Best practices in minimizing self-dealings and prohibited transactions

Benefits

The panel will review these and other key issues:

  • How does the IRS define "self-dealing" and "prohibited transactions" in nonprofits and private foundations?
  • How has the IRS responded to undistributed income and incidental and tenuous benefits received by disqualified persons?
  • How can you preserve private foundations by prohibiting self-dealing transactions?
  • How to overcome increased IRS scrutiny and potential audits

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Ascertain how the IRS defines "self-dealing" and "prohibited transactions" in private foundations
  • Recognize IRS treatment of undistributed income and incidental and tenuous benefits received by disqualified persons
  • Identify how you can preserve private foundations by prohibiting self-dealing transactions
  • Understand which asset transfers provide the most income and transfer tax benefits when gifted to a private foundation
  • Ascertain how to overcome increased IRS scrutiny and potential audit of a private foundation

  • Field of Study: Taxes
  • 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 complex estate plans and trusts; supervisory authority over other planners/preparers. Knowledge and understanding of tax treatment of IRAs and other qualified plans in a transfer tax context; knowledge and understanding of charitable contribution limitations. Familiarity with charitable donation vehicles such as private foundations, GRATs, and donor advised funds.

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).