The law affects organizations exempt from federal income tax under section 501(a) and described in section 501(c) and section 501(d). Examples of the type of tax-exempt organization to which the law applies include: charities, schools, labor organizations, business leagues, fraternities, social clubs, veterans organizations, and voluntary employees’ beneficiary associations. See Types of Organizations for more information about these organizations. It also applies to political organizations exempt from taxation under section 527(a).
This law does not apply to certain split-interest trusts. Additionally, the law does not affect those organizations that are exempt under other provisions of the Code, for example farmers’ cooperatives exempt under section 521; homeowners’ associations exempt under section 528; and qualified state tuition programs exempt under section 529.
DISCLAIMER: This information is not intended to provide legal or accounting advice, or to address specific situations. Please consult with your legal or tax advisor to supplement and verify what you learn here.
