New IRS Guidance Offers Exemption "Tipping Points"

Malcolm Gladwell's 2002 best seller, The Tipping Point: How Little Things Can Make a Big Difference, defined a "tipping point" as a critical mass or threshold that, when reached, creates dramatic transformation. On September 8th, the Internal Revenue Service (IRS) proposed regulations to illustrate the points at which certain private benefit activities may cause an organization to be deemed as one operating for private benefit rather than one serving public interests. When such a "tipping point" is reached, an organization will lose its status as tax-exempt under Section 501(c)(3) of the Internal Revenue Code (the "Code").  Learn more.