January 2013

Treasury and IRS Issue Final and Temporary Type III Supporting Organization Regulations

Planning for Type III Supporting Organizations

The Nonprofit Organizations team at Polsinelli Shughart has analyzed the potential implications of newly issued Treasury and IRS regulations regarding the requirements to qualify as a Type III Supporting Organization and can provide direct and practical advice to your organization.

Your organization should note the potential reduction in the payout requirement for non-functionally integrated Type III supporting organizations. In addition, you should determine how this more flexible distribution rule may benefit your organization and identify potential problems that your organization may encounter. Your organization may consider providing comments to the IRS regarding the new temporary and proposed regulations. You also should review your activities periodically to ensure that your supporting organization is adhering to the requirements of the final regulations.

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