Description
Identify and understand the underlying tax principles involved with joint ventures and forprofit subsidiaries.
In a postCOVID time of inflation and economic uncertainty of economic upheaval, nonprofits everywhere are struggling for new sources of funding and expense sharing as need for their services grows exponentially. Simultaneously, the nonprofit sector has seen an influx of social enterprises businesses designed not just to make a profit, but to further social goals. Given these two trends, more and more nonprofits find themselves considering forprofit activities such as joint ventures in order to address their funding needs and the growing needs of the constituencies they serve. This topic will cover the basic tax issues for organizations contemplating entering forprofitnonprofit joint ventures, including IRS pronouncements and court cases to date It will also address and some drafting tips and practical issues that may arise in forming a joint venture. This presentation will help attorneys, nonprofit administrative personnel, and nonprofit financial advisors understand the parameters that govern joint ventures as they consider entering into new revenue arrangements.
Date: 2024-03-20 Start Time: 1:00 PM ET End Time: 2:05 PM ET
Learning Objectives
* You will be able to explain what an organization entering into a joint venture must do to protect its taxexempt status.
* You will be able to describe the basic requirements of a nonprofitforprofit joint venture.
* You will be able to discuss UBTI issues that arise in the context of joint ventures.
* You will be able to identify practical issues that arise in drafting joint venture agreements.