061: In the Weeds With New Supporting Organization Regulations

Welcome to EO Radio Show - Your Nonprofit Legal Resource. I'm Cynthia Rowland, and today's episode discusses highly technical Supporting Organization rules for public charity qualifications for charitable organizations. Last year, episodes 23 and 24 of EO Radio Show covered the complex rules that describe supporting organizations, which are a special classification of public charity for US federal income tax purposes. All supporting organizations must pass complicated tests intended to ensure that the supported organization is not effectively a private foundation. These rules were initially enacted in 2006, and proposed regulations were published in 2016. On October 13, 2023, the US Treasury released new final regulations that make minor changes to the Type I test and more significant clarifications to the Type III requirements. This episode outlines the changes made in these final regulations applicable to certain parts of the qualification criteria for supporting organizations. Resources: Federal Register: Requirements for Type I and Type III Supporting Organizations EO Radio Show EP 23: Nonprofit Basics: Supporting Organizations - Part 1 EO Radio Show EP 24: Nonprofit Basics: Supporting Organizations Part 2 - Orientation for Understanding Type III Supporting Organizations If you have suggestions for topics you would like us to discuss, please email us at [email protected].  Additional episodes can be found at EORadioShowByFarella.com.  DISCLAIMER: This podcast is for general informational purposes only. It is not intended to be, nor should it be interpreted as, legal advice or opinion.