Abstract

http://ssrn.com/abstract=2350470
 


 



Private Benefit: What Is It – And What Do We Want It To Be?


John D. Colombo


University of Illinois College of Law

2011

Annual Conference of the National Center on Philanthropy and the Law, New York, NY, 2011

Abstract:     
Beginning with the landmark decision American Campaign Academy v. Commissioner in 1989, the Internal Revenue Service has used the “private benefit” doctrine as a primary tool to police the activities of charitable organizations exempt under Code Section 501(c)(3). Unfortunately, the doctrine literally has no doctrinal content. Unlike its sibling, the private inurement doctrine, the private benefit doctrine has no statutory basis in 501(c)(3). Though the IRS claims the doctrine flows from the 1959 Treasury Regulations, it is a claim that is questionable given the language used, and in any event, this interpretation of the regulations appears not to have been “discovered” until some at least a decade after the regulations were promulgated.

This paper reviews the history and application of the private benefit doctrine, and suggests a specific normative test for application of the doctrine to situations involving a “failure to conserve” charitable assets.

Number of Pages in PDF File: 48

working papers series





Download This Paper

Date posted: November 7, 2013  

Suggested Citation

Colombo, John D., Private Benefit: What Is It – And What Do We Want It To Be? (2011). Annual Conference of the National Center on Philanthropy and the Law, New York, NY, 2011. Available at SSRN: http://ssrn.com/abstract=2350470 or http://dx.doi.org/10.2139/ssrn.2350470

Contact Information

John David Colombo (Contact Author)
University of Illinois College of Law ( email )
504 East Pennsylvania Avenue
232 Law Building
Champaign, IL 61820
United States
217-333-7985 (Phone)
217-244-1478 (Fax)
Feedback to SSRN


Paper statistics
Abstract Views: 111
Downloads: 35

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo4 in 0.250 seconds