• IRS Issues Guidance Permitting Deductions for Gifts Made to a Charity’s Subsidiary LLC
  • August 9, 2012 | Authors: Marla K. Conley; Jonathan R. Flora
  • Law Firms: Schnader Harrison Segal & Lewis LLP - Philadelphia Office ; Schnader Harrison Segal & Lewis LLP - San Francisco Office
  • Charities frequently desire to house some of their assets and operations in a subsidiary company for liability protection, management and other beneficial business reasons. The Internal Revenue Service (“IRS”) has issued recent guidance (Notice 2012-52) that makes a limited liability company (“LLC”) the ideal choice of entity for this purpose in many instances. In particular, the guidance resolves any doubt about a charity’s ability to fundraise from individual donors through a wholly owned LLC.