BarbriSFCourseDetails
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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

    Monday, November 25, 2024

  • 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 organization professionals and counsel with a practical guide to the planning and reporting implications when a donor contemplates gifting an interest in a partnership or an LLC to an exempt organization. The panel will outline gifting impacts to donors, detail the due diligence requirements and possible tax consequences to the donee charity, and offer operational insights. The webinar will also describe the differences in treatment between gifts to public charities vs. private foundations.

Faculty

Amanda H. Nussbaum
Partner
Proskauer Rose LLP

Ms. Nussbaum advises not-for-profit clients on matters such as applying for and maintaining exemption from federal income tax, minimizing unrelated business taxable income, structuring joint ventures and partnerships with taxable entities and using exempt and for-profit subsidiaries. She also represents many types of investors, including tax-exempt and non-U.S. investors, with their investments in private investment funds. Her practice also focuses on planning for and the structuring of domestic and international private investment funds, including venture capital, buyout, real estate and hedge funds, as well as advising those funds on investment activities and operational issues.

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Michael I. Sanders
Partner
Blank Rome LLP

Mr. Sanders focuses his practice in the area of taxation, particularly in matters affecting partnerships, limited liability companies, S-corporations, real estate, tax controversy, and estate planning, including trusts and estates. He also has a large practice in the area of exempt organizations involving healthcare and low-income housing, associations and joint ventures between for-profits and nonprofits, as well as structuring New Markets Tax Credit ("NMTC") and Historic Tax Credit ("HTC") transactions. He is the author of Joint Ventures Involving Tax-Exempt Organizations (3rd Ed., 2007; 4th Ed., 2013) which was recently cited by the majority opinion in the widely covered U.S. Supreme Court decision in Burwell v. Hobby Lobby Stores, Inc. He previously served as an attorney-advisor to the assistant secretary of tax policy at the Office of Tax Legislative Counsel.

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Description

For many clients owning interests in limited partnerships or LLCs, a component of charitable tax planning involves donating some or all of their interests in those entities to exempt organizations. While many charities are hesitant to accept contributions of partnership or LLC units, these donations can be of value to the exempt organization. Still, the nonprofit adviser must understand the operational risks and exit strategy of holding the asset.

Exempt organization advisers should have a firm understanding of the tax consequences of contributions of limited partnership or LLC interests to the donor and the donee organization. Advisers can play a critical role in structuring tax-efficient donative transfers that benefit both the donor and the tax-exempt charity.

The exempt organization can help facilitate the contribution by performing due diligence on the partnership or LLC. Key elements include determining whether the entity generates any unrelated business taxable income, whether the entity's operating agreement provides contribution requirements, including capital calls, and whether the business has any hidden liability risks.

Additionally, advisers to clients with private foundations or donor-advised funds should also be aware of the tax implications of partnership or LLC interest gifts to avoid unanticipated, adverse tax consequences.

Listen as our experienced panel provides a practical guide to the tax issues and opportunities involved with charitable contributions of partnership or LLC interests.

Outline

  1. Structure of partnership or LLC interest donations
  2. Cash flow considerations
  3. Due diligence requirements by donee charity
  4. UBTI traps
  5. Factors unique to private foundations and donor-advised funds

Benefits

The panel will discuss these and other vital issues:

  • What are the benefits--and risks--of charitable contributions of partnership and LLC interests to an exempt organization?
  • What due diligence must the exempt organization advisers undergo to ensure that a partnership or LLC interest contribution does not involve tax, operational, or cash-flow risk to the donee charity?
  • What factors unique to private foundations and donor-advised funds impact charitable contributions of partnership or LLC interests?
  • How should an exempt organization structure a donative transaction of a partnership or LLC interest?

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Differentiate between a public charity and private foundation
  • Determine the risks and benefits of making a charitable contribution of LLS or partnership interests to an exempt organization
  • Identify UBTI traps
  • Identify the due diligence requirements by the tax donee charity
  • Recognize bargain sales, adjusted basis in bargain sales, and indebtedness in bargain sales

  • 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+ nonprofit or public firm experience at mid-level within the organization, providing advice and preparing Form 990 for exempt organizations, supervising other preparers/accountants preparing Form 990. Specific knowledge and understanding of nonprofit tax exemption standards, including issues related to unrelated business taxable income (UBTI); familiarity with LLC and partnership interests and structuring donative transactions.

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).