To What Extent Can NIL Collectives and Other 501(c)(3) Organizations Rely on a Favorable Determination Letter from the IRS?

Elizabeth A. Prendergast
Elizabeth A. Prendergast | Michael Best & Friedrich LLP

Beth devotes her practice to advising nonprofit organizations in complex tax, governance, and compliance matters.

On-Demand: November 9, 2023

This class is included in the Federal Bar Association CLE Pass

Subscribe to Federal Bar Association CLE Pass...
Co-Sponsored by myLawCLE
Get this course, plus over 1,000+ of live webinars.
Learn More
MCLE Credit Information:

Select Your State Below to View CLE Credit Information

1 hour CLE
Tuition: $95.00
Training 5 or more people?

Sign-up for a law firm subscription plan and each attorney in the firm receives free access to all CLE Programs

Program Summary

Earlier this summer, the IRS published a memorandum, casting serious doubt on whether NIL collectives qualify for tax-exempt status under Section 501(c (3) of the Internal Revenue Code. Beyond the NIL context, and while not directly addressed in the IRS memorandum, the memorandum raises questions regarding whether (and to what extent) an organization described in Section 501(c)(3) of the Code can rely on a favorable determination letter from the IRS. This presentation will explore (1) the consequences the memorandum may have on NIL collectives relying on a favorable IRS determination letter; (2) the rules pertaining to a tax-exempt organization’s reliance on its favorable determination letter; and (3) when retroactive revocation may be appropriate for organizations that filed a Form 1023 with a material omission or misstatement of fact.

This course is co-sponsored with myLawCLE.

Key topics to be discussed:

  • The tax-exempt status of NIL collectives after recent IRS guidance
  • Tax-exempt organization reliance on favorable IRS determination letters
  • Retroactive vs. prospective revocation of tax-exempt status
  • Strategies for guarding tax-exempt status

Date / Time: November 9, 2023

Closed-captioning available

Speakers

Elizabeth A. Prendergast_FedBarElizabeth A. Prendergast | Michael Best & Friedrich LLP

Beth devotes her practice to advising nonprofit organizations in complex tax, governance, and compliance matters. Her tax exempt clients range from grassroots organizations to international establishments and include private foundations, public charities, religious organizations, educational institutions, advocacy groups, and trade associations, among others.

Beth focuses in the areas of tax-exempt entity formation, social enterprise, public-private partnerships, nonprofit governance and compliance, complex tax-exempt structuring, nonprofit mergers and consolidations, and compliance with state charitable solicitation laws.

As a seasoned corporate attorney with a passion for community development, Beth also helps mission-driven companies design and implement market-based strategies to maximize both financial and social returns.

As a co-leader of Michael Best’s Environmental, Social & Governance (ESG) group, Beth advises clients on ESG initiatives, working with leadership teams and external stakeholders to successfully reach organizational goals while achieving positive social change.

Before joining our firm, Beth founded her own firm, providing corporate legal services to social ventures and nonprofit organizations. She also practiced with a Chicago-based law firm where she helped mission driven organizations reach maximum impact at the intersection of business and social impact.

Agenda

I. The tax-exempt status of NIL collectives after recent IRS guidance | 2:00pm – 2:15pm

II. Tax-exempt organization reliance on favorable IRS determination letters | 2:15pm – 2:30pm

III. Retroactive vs. prospective revocation of tax-exempt status | 2:30pm – 2:45pm

IV. Strategies for guarding tax-exempt status | 2:45pm – 3:00pm

Preview
More CLE Webinars
Trending CLE Webinars
The Corporate Transparency Act Reporting Obligations
The Corporate Transparency Act Reporting Obligations
Law Offices of Jonathan H. (Jason) Warner, P.A.
On-Demand
IRS Penalty Abatement Made Easy
IRS Penalty Abatement Made Easy
Green & Sklarz, LLC
On-Demand
Gun Trust Law (2024 Edition)
Gun Trust Law (2024 Edition)
Partner, Davenport Evans Lawyers
On-Demand
Revocable Living Trusts from Start to Finish (2024 Edition)
Revocable Living Trusts from Start to Finish (2024 Edition)
Partner, Davenport Evans Lawyers
On-Demand
Lawyers Serving on Boards
Lawyers Serving on Boards
Howard Brod Brownstein, CTP.
Essential Accounting Principles Every Attorney Should Know
Essential Accounting Principles Every Attorney Should Know
LaPorte CPAs & Business Advisors
On-Demand
Creating a Trial Notebook: From A - Z (Including 1hr of Ethics)
Creating a Trial Notebook: From A - Z (Including 1hr of Ethics)
Trial Lawyers for Justice, Hanker Law PC
On-Demand
Tax Opportunity Zones (2024 Edition)
Tax Opportunity Zones (2024 Edition)
Blank Rome LLP
On-Demand
Litigating Libel and Defamation Cases
Litigating Libel and Defamation Cases
Callahan & Blaine, APLC.
On-Demand
Will Drafting 101 (2024 Edition)
Will Drafting 101 (2024 Edition)
Partner, Davenport Evans Lawyers
On-Demand
Upcoming CLE Webinars
Using Self-Collection Tools to Gather ESI
Using Self-Collection Tools to Gather ESI Wed, December 4, 2024
Live Webcast
Law Firm Automation Meets AI: A match made in heaven?
Law Firm Automation Meets AI: A match made in heaven? Thu, December 5, 2024
Live Webcast
Tools for Managing Vicarious Trauma in Practice
Tools for Managing Vicarious Trauma in Practice Thu, December 5, 2024
Live Webcast
Wine, Spirits and Beer Law 101 (2025 Edition)
Wine, Spirits and Beer Law 101 (2025 Edition) Fri, December 6, 2024
Live Webcast
Playing Defense at 30(b)(6) Depositions (2024 Edition)
Playing Defense at 30(b)(6) Depositions (2024 Edition) Fri, December 6, 2024
On-Demand
Live Replay
4th Annual Tax Rep Summit [4-Day Event]
4th Annual Tax Rep Summit [4-Day Event] Tue, December 10, 2024
Live Webcast
Supercharging Your Transactional Practice with GenAI
Supercharging Your Transactional Practice with GenAI Wed, December 11, 2024
Live Webcast
Cannabis Law: Taxation, M&A, and Compliance Strategies
Cannabis Law: Taxation, M&A, and Compliance Strategies Wed, December 11, 2024
Live Webcast
Negotiating Financing and Investment in Cannabis
Negotiating Financing and Investment in Cannabis Thu, December 12, 2024
Live Webcast
Fraudulent Transfers Uncovered (2025 Edition)
Fraudulent Transfers Uncovered (2025 Edition) Thu, December 12, 2024
Live Webcast
Esports Law 101 (2025 Edition)
Esports Law 101 (2025 Edition) Fri, December 13, 2024
Live Webcast
Dividing Military Pensions (2025 Edition)
Dividing Military Pensions (2025 Edition) Mon, December 16, 2024
Live Webcast
Common Cyber Threats and How to Reduce Risk
Common Cyber Threats and How to Reduce Risk Wed, December 18, 2024
Live Webcast