Foundation Legal Compliance and IRS Regulations Course

Lesson 1 • Types of Tax-Exempt Organizations

Defines public charities, private foundations, and operating foundations by structural criteria. Provides the classification baseline needed for all subsequent compliance analysis.

Lesson 2 • Applying for Tax-Exempt Status

Walks through the recognition application process, required disclosures, and IRS review timelines. Students understand what triggers approval or additional scrutiny.

Lesson 3 • State Registration and Dual Compliance

Explains state-level charitable registration requirements that run parallel to federal obligations. Highlights how dual compliance affects operational planning.

Lesson 1 • Excess Business Holdings Rules

Covers permitted and excess ownership stakes in business enterprises. Students assess portfolio holdings and identify divestiture timelines.

Lesson 2 • Self-Dealing Prohibitions

Identifies transactions between foundations and disqualified persons that constitute self-dealing. Students apply the rules to fact patterns and recognize exceptions.

Lesson 3 • Jeopardizing Investments and Taxable Expenditures

Addresses investments that endanger the foundation's charitable purpose and expenditures that violate regulatory limits. Students evaluate risk and apply corrective procedures.

Lesson 4 • Mandatory Distribution Requirements

Explains the annual minimum distribution obligation and how qualifying distributions are calculated. Students verify compliance and plan distribution strategies.

Lesson 1 • Private Foundation Excise Tax Returns

Covers the separate excise tax return required of private foundations and its quarterly estimated payment rules. Links return accuracy to penalty avoidance.

Lesson 2 • Public Disclosure and Transparency Rules

Details mandatory public inspection rights for returns and exemption applications. Students implement disclosure procedures that satisfy regulatory requirements.

Lesson 3 • Core Return Schedules and Attachments

Examines required schedules covering governance, compensation, and program activities. Students learn how each schedule feeds the overall compliance picture.

Lesson 4 • Annual Return Overview and Selection

Identifies which annual return form applies based on gross receipts and asset thresholds. Connects form selection errors to penalty exposure.

Lesson 1 • Grants to Public Charities

Explains simplified procedures for grants to verified public charities and the reliance rules available. Connects proper verification to reduced compliance burden.

Lesson 2 • Individual Grants and Scholarship Programs

Covers advance approval procedures for grants to individuals, including scholarships and fellowships. Students structure programs that meet objective criteria requirements.

Lesson 3 • Expenditure Responsibility for Non-Charity Grants

Details the full expenditure responsibility process required when granting to non-public-charity recipients. Students draft compliant grant agreements and monitoring reports.

Lesson 4 • International Grantmaking Compliance

Addresses equivalency determination and expenditure responsibility as alternative paths for foreign grants. Students select the appropriate pathway and document it correctly.

Lesson 1 • Private Foundation Lobbying Restrictions

Covers the stricter taxable expenditure rules that apply to foundation lobbying and propaganda. Students distinguish permissible nonpartisan analysis from prohibited lobbying.

Lesson 2 • Absolute Prohibition on Political Campaign Activity

Defines the complete ban on candidate intervention for all public charities and private foundations. Students identify prohibited activities and understand revocation risk.

Lesson 3 • Permissible Advocacy and Education Activities

Identifies issue advocacy, public education, and voter registration activities that remain lawful. Students design programs that stay within safe boundaries.

Lesson 1 • Board Fiduciary Duties

Defines the duties of care, loyalty, and obedience as applied to nonprofit board members. Students connect each duty to specific governance actions and documentation.

Lesson 2 • Conflict of Interest Policy Design

Guides students through drafting and enforcing a conflict of interest policy that satisfies IRS expectations. Links policy gaps to self-dealing and intermediate sanctions risk.

Lesson 3 • Required Governance Policies and Procedures

Covers the specific policies the IRS reviews on annual returns, including whistleblower and document retention policies. Students draft each policy to meet regulatory expectations.

Lesson 4 • Executive Compensation and Intermediate Sanctions

Explains the rebuttable presumption procedure for setting reasonable compensation and the excise taxes for excess benefit transactions. Students apply the procedure to protect the organization.

Lesson 1 • Internal Controls and Fraud Prevention

Establishes internal control frameworks that protect assets and satisfy auditor and regulatory expectations. Students design controls appropriate to foundation size and risk.

Lesson 2 • Nonprofit Fund Accounting Principles

Introduces net asset classifications and fund accounting as the basis for nonprofit financial reporting. Students distinguish restricted, temporarily restricted, and unrestricted funds.

Lesson 3 • Audit Requirements and Auditor Relations

Explains when independent audits are required and how to manage the auditor relationship effectively. Students prepare for audit fieldwork and respond to findings.

Lesson 4 • Financial Statement Preparation and Review

Covers the required financial statements for nonprofits and how they satisfy regulatory and audit requirements. Students read statements to identify compliance red flags.

Lesson 1 • Revocation of Exemption and Reinstatement

Addresses the grounds for revocation, the automatic revocation process, and the reinstatement application. Students build safeguards to prevent automatic revocation.

Lesson 2 • Appeals, Protests, and Litigation Options

Explains the administrative appeals process and judicial options available after an adverse IRS determination. Students evaluate when to appeal versus accept proposed changes.

Lesson 3 • Responding to IRS Information Requests

Covers proper procedures for responding to IRS correspondence, document requests, and questionnaires. Students draft responses that are complete, accurate, and strategically sound.

Lesson 4 • Examination Process and Agent Interaction

Walks through the field examination process from opening conference to closing agreement. Students manage agent interactions professionally and protect organizational interests.