Advanced Tax Topics Regarding 501(c)(3) Bonds
The panel addressed issues relating to 501(c)(3) opinions and the role of both Borrower's Counsel and Bond Counsel in various aspects of qualified Section 501(c)(3) bond transactions and analysis of unrelated trade or business activities occurring in bond-financed property. Panelists discussed opinion issues for entities that have not yet received a determination letter (Form 1023 pending), entities not able to locate a copy of the Form 1023 filed with the IRS upon which the determination letter is based, entities classified as "private foundations" rather than "public charities," and entities that have made certain "foot faults" with respect to Form 990 and other required filings. The session included a discussion of the charity-care standards applicable to hospitals, particularly the substance and scope of Section 501(r) diligence and how it impacts the Borrower's Counsel and Bond Counsel opinions. Finally, the session discussed partnerships involving Section 501(c)(3) organizations and for-profit entities and the ability to finance property used and/or owned by such partnerships.
Panel Chair: Andrea M. Ball, Orrick, Herrington & Sutcliffe LLP, New York, NY
Sarah A. Breitmeyer, Chapman and Cutler LLP, Chicago, IL
Brittany Cvetanovich, Ropes & Gray LLP, Boston, MA
Bruce M. Serchuk, Nixon Peabody LLP, Washington, DC
Arbitrage and Rebate