Hopkins' Nonprofit Law Dictionary

Bruce R. Hopkins

• Publisher: Wiley
• Year: 2015
• Print ISBN: 9781118996089
• eBook ISBN: 9781119057116
• Edition: 1
• Topic: Law
• Subtopic: Law Theory & Practice
• Index: Law

A focused, invaluable guide to nonprofit legal terminology and definitions

The Bruce R. Hopkins Nonprofit Law Dictionary is a thorough professional reference for the terminology and definitions surrounding the law of tax-exempt organizations. Author Bruce R. Hopkins, the country's leading expert in nonprofit law, draws upon 45 years of practice to deliver a true dictionary reference for attorneys specializing in nonprofit law and tax law. The book's terminology and definitions are derived from constantly changing statutes, government agency regulations and rulings, court opinions, and government forms and instructions, with citations provided where appropriate. Modeled after a conventional dictionary, this book offers quick navigation to the information of interest, and points you toward the other Hopkins guides that provide more in-depth information should you require it.

The devil is in the details, and nowhere is that statement truer than in the legal profession. Incorrect interpretation of a single phrase can cause consequences for both client and attorney, and verbiage may be intentionally vague with unexpectedly broad or narrow definitions. This guide gives you the most commonly accepted interpretations of terminology related specifically to nonprofit law, so you can feel confident in the quality of service you provide to your clients.

• Stay up to date on the latest in nonprofit law
• Confirm the accepted definitions of legal terms and phrases
• Learn where to turn for deeper guidance on specific topics
• Gain expert insight into obscure and complex definitions

Stop spending time wading through textbooks and case law, only to wonder whether or not the information you eventually found applies to nonprofit law in the same way. Focused specifically on the law as it applies to the nonprofit sector, the Bruce R. Hopkins Nonprofit Law Dictionary is an indispensable reference that gives you the information you need quickly and easily.

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Parens patriae

The words “parens patriae” are Latin for “parent of his country.” The term today is used to express the role of a government as a guardian of certain persons who are seen (usually by the government) as in need of the protection afforded by the government. For example, the role of the states in administering and enforcing charitable solicitation acts is viewed as the provision of protection for citizens who would otherwise be duped, swindled, and defrauded into making contributions to entities that are not, in fact, charitable organizations or to persons who would not use the gifts for charitable purposes. [FR § 3.19] (also Police power).

Parent organization

The term “parent organization” is used to describe an organization that, at a minimum, controls one or more other organizations and perhaps owns one or more other organizations. These other organizations are known as subsidiary organizations (or subsidiaries). Where the parent and subsidiary organizations are nonprofit organizations, this element of control is usually manifested in interlocking directorates, where at least a majority of the members of the board of directors of the subsidiary organization are, and/or are selected by, members of the board of directors of the parent organization. In some instances, this element of control is reflected in stock; where the relationship between the parent organization and a subsidiary organization is represented by stock, the parent organization will, in addition to controlling the subsidiary, own the subsidiary (assuming the parent organization owns at least a majority of the stock of the subsidiary organization). It is common for this same result to occur by reason of the fact that the parent organization is the member of the subsidiary organization. Special rules may apply to tax revenue paid by a subsidiary organization to a parent organization. [EO §§ 12.3(c), 29.1; HC § 20.2] (also Affiliated organization; Control; Feeder organization; Group exemption; Subordinate; Supporting organization).

Parsonage allowance

A gross income tax exclusion is available, in the case of a minister of the gospel, for the rental value of a home furnished to the minister as part of his or her compensation and for a rental allowance paid to the minister as part of his or her compensation. This allowance is available to the extent the minister uses it to rent or provide a home and to the extent the allowance does not exceed the fair rental value of the home, including furnishings and appurtenances such as a garage, plus the cost of utilities. A federal district court held that the exclusion in the form of the allowance is unconstitutional as a violation of the Establishment Clause, although that determination was nullified when an appellate court ruled that the plaintiffs lacked standing to bring the action (IRC § 107). [EO § 10.1(b); CL §§ 2.4, 2.5] (also Convenience of employer doctrine).

Partial interest

An item of property is—conceptually—comprised of two types of interests: one or more income interests and one or more remainder interests. Since these interests each constitute less than the totality of the interests in the property, they are termed “partial interests.” This concept underlies many forms of planned giving. When a donor makes an outright gift of an item of property, he, she, or it contributes all of his, her, or its interest in the property. A donor may, however, contribute only an income interest or a remainder interest in an item of property. Usually, the medium that is used to “split” a property into these interests is a split-interest trust. [CG § 5.3; SM pp. 233–234].

Partial interest gift

A “partial interest gift” is a gift to a charitable organization or other person of less than the donor's entire interest in an item of property (or money); it is a gift of a partial interest. [CG §§ 5.3, 9.23; PF §§ 14.1(a); 14.2, 14.5; SM p. 138].

Partially agreed case

One of the types of IRS tax-exempt organization examination cases that may be closed is the “partially agreed case,” which is a case that entails more than one issue, where the exempt organization agrees with the IRS to at least one issue and disagrees as to at least one issue, and signs the appropriate waiver and acceptance forms as to the agreed issues. [AU § 5.32(a)].

Partially completed appraisal summary

The phrase “partially completed appraisal summary” is used in the context of the appraisal rules that apply with respect to certain charitable contributions of appreciated property. In the case of nonpublically traded securities, the claimed value of which does not exceed $10,000 but is greater than $5,000, the donor must attach a partially completed appraisal summary form (Form 8283) to the tax return on which the charitable contribution deduction is claimed. [CG § 21.5; FR § 5.17(c); SM pp. 139–140].

Participating loan restriction

The term “participating loan restriction” is used in the context of defining circumstances where an exception, from the law treating income from debt-financed property as unrelated business taxable income, is available to qualified organizations that make debt-financed investments in real property (IRC § 514(c)(9)(A)). Under this exception, income from investments in real property is not treated as income from debt-financed property.

This exception is available only where six restrictions are satisfied (IRC § 514(c)(9)(13)). One of them is the “participating loan restriction,” which provides that the amount of the indebtedness or any amount payable with respect to the indebtedness, or the time for making any payment of any amount, ...

Table of contents

• Cover
• Titlepage
• Copyright
• Preface
• How to Use This Dictionary
• A
• B
• C
• D
• E
• F
• G
• H
• I
• J
• K
• L
• M
• N
• O
• P
• Q
• R
• S
• T
• U
• V
• W
• X
• Y
• Z
• About the Author
• EULA