Kids Flaunt Mueller Macaroni and IRC 502 With So Much Impunity

Here is a quick trivia question to ask your students on a slow school day:  If your feeder organization operates so infrequently that its activities do not constitute an unrelated taxable business, does it therefore qualify as a tax exempt organization?  Summer is nearly here and across the country dangerous kids are starting dangerous feeder organizations disguised as charities, and not even bothering to file 990’s.  

This syndicated lemonade feeder organization promoter started off as a disregarded entity and, in the absence of state enforcement, has evolved into a major feeder and is nearing UBIT territory.  

And here is another little tycoon who has turned her nonprofit into a thriving for profit, in violation of all sorts of private benefit rules.    

I’m just saying.  Nonprofit jurisprudence is happening all over the place everyday.

darryll jones