Article Archives >> Ready Reference >> April 1998
Preview of Article:
IRS Says Charities Must Control Joint Ventures
Nonprofits will lose tax exempt status if they do not have control over whole hospital joint ventures with for-profit organizations
Excerpt:
Although this Revenue Ruling specifically applies only to whole
hospital joint ventures, it sets out an IRS view that is likely
to be applicable in other cases. Many prior rulings have allowed
joint ventures related to a hospital’s mission where others clearly control, such as a venture
with physicians for an MRI. Where the venture activity is such a significant
part of the charity’s overall operation, however, the IRS seems to
be applying a different standard. If you have control, there should be
no problem. If you don’t, you will want a ruling that it is
not such a significant activity that it will cause a problem.
Article Archives >> Ready Reference >> April 1998
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