The Law of Tax-Exempt Organizations Planning Guide Strategies and Commentaries BRUCE R. HOPKINS John Wiley & Sons, Inc. The Law of Tax-Exempt Organizations Planning Guide Strategies and Commentaries The Law of Tax-Exempt Organizations Planning Guide Strategies and Commentaries BRUCE R. HOPKINS John Wiley & Sons, Inc. This book is printed on acid-free paper. ⬁ Copyright © 2004 by John Wiley & Sons, Inc. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 750-4470, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008, e-mail:
[email protected] Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best ef forts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specif ically disclaim any implied warranties of merchantability or f itness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of prof it or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. For general information on our other products and services, or technical support, please contact our Customer Care Department within the United States at 800-762-2974, outside the United States at 317-572-3993 or fax 317-572-4002. Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. For more information about Wiley products, visit our web site at www.wiley.com. ISBN: 0-471-47122-4 Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 With this book, Hopkins has not merely given away the store, he has bared his soul. — Thomas K. Hyatt, Esq. Dedication Few books are dedicated to an author’s critics. This one is. The most frequent criticism I have heard over the years (all 30-plus of them) of The Law of Tax-Exempt Organizations is that it is silent as to planning, guidance, and techniques. (You critics out there know who you are; I could name some names, but I desist.) With a few exceptions, this observation is true. Just summarizing the law in the eighth edition (2003) required more than 1,000 pages; the addition of planning material would balloon the book to a size beyond utility (and purchase). As this criticism f inally sunk in, it occurred to me that a planning component is in fact essential, given the increasing complexity of the law in this area, albeit in a separate volume. This is that book. This book, then, is dedicated to these critics. Thank you, dear critics, for the idea. An extraordinary amount of pleasure has been derived from preparation of the book. It is my hope that it will help law