Joint Ventures of Nonprofits and For-Profits Academic Article uri icon

abstract

  • This article summarizes special tax considerations that should be taken into account when for-profit parties seek to engage in joint ventures with charitable organizations. In particular, there are two areas of concern unique to charitable organizations with respect to joint ventures with for-profit parties. First, certain rules restrict or prohibit a charitable organization's ability to enter into transactions with insiders. Second, a charitable organizations' participation in a joint venture with a taxable party may cause the charitable organization to incur unrelated business taxable income or lose its tax-exempt status. Underlying both of these areas of concern is the overriding concern that a charitable organization be organized primarily for the conduct of its charitable purposes and not engage in any activity that results in private inurement or private benefit.

published proceedings

  • The Texas Tax Lawyer

author list (cited authors)

  • Helge, T. L

complete list of authors

  • Helge, Terri Lynn

publication date

  • January 2014