March 5, 2024


2.5 Total CPE Credits


Related Organizations - Everything You Need to Know

  • Instructor

    Eve Borenstein

Learning Objectives

After attending this presentation, you will be able to...

  • Identify the principles by which control vests in determining parent (of subsidiary), subsidiary (of parent), or sibling status between the filer and a not-for-profit organization
  • Identify how control vests over an entity that is a stock corporation
  • Apply the principles that yield "commonly controlled" related organizations (i.e., sibling organizations)
  • Distinguish the baseline information required when reporting existence of related organizations in Schedule R's Parts II (tax-exempt entities), Part IV (corporations or trusts), and Part III (partnerships)
  • Recognize the info disclosure sought in Schedule R's Part V with respect to TYPES of transactions with related organizations and when specific dollar disclosure is required

Major Topics

The major topics covered in this class include:

  • The reach of "parent-subsidiary" and "sibling" status when the party who is the subject of "control" is a nonprofit/nonstock entity [note this applies both to ascertaining whether the filer is "controlled by" a related organization OR itself "controls" another nonstock entity]
  • Understanding what is considered "control" when a potential related organization is: a stock corporation versus a partnership or an LLC taxed as a partnership versus a trust
  • The challenges of both finding "directly-controlled" related organizations versus imputing related organization status through "indirect control"
  • The two automatic status categories of related organizations: supporting organization connections (one entity being a 501(c)(3) with 509(a)(3) sub-classification from connection to another entity) and VEBA-unique categories
  • Overview information sought on Schedule R's Parts II-IV once the presence of one or more related organizations is ascertained
  • Schedule R Part V disclosure demands when a related organization is a "controlled entity" under, and thus subject to, Code section 512(b)(13)'s UBIT-reach
  • Overview of the Schedule R Part V disclosure requirements for 501(c)(3) filers who have a related organization itself recognized as tax-exempt under 501(c)(x) other than 501(c)(3)

CPE Credits Available

Total CPE

Things to Know About This Course

Course Level

  • Overview

Professional Area of Focus

  • Taxation

Advanced Preparation


Intended Audience

Public accounting tax staff and audit personnel, nonprofit organization's Treasurers and CFOs, and finance or compliance consultants serving 990 filers.


CPA Crossings

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  • ASCPA Non-Member

    $ 139 139
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