The Pension Protection Act of 2006 adopted new Internal Revenue Code section 501(q), which establishes standards that a credit counseling organization must satisfy to qualify for exemption under Code section 501(c)(3) or 501(c)(4).

1. Does the new law apply to my organization?
2. What does the new law require for credit counseling organizations exempt under Code section 501(c)(3) or 501(c)(4)?
3. Are there other requirements for section 501(c)(3) organizations?
4. Am I required to comply with the new law even if I do not offer debt management plans?
5. Are there restrictions on who may serve on the governing board of a credit counseling organization?
6. Can we put our activities that don’t meet the criteria of the new law into a wholly-owned taxable subsidiary?
7. May I buy lists of potential customers from the Internet site that carries my ads?
8. The statute says we cannot solicit contributions from consumers. How can we raise operating funds?
9. Does the statute limit how much we can receive from debt management plan (DMP) services?
10. When does the statute take effect?
11. If I don’t meet the requirements of the new law, is my income from debt management plans (DMPs) taxed?
12. Where can I get more information about credit counseling organizations?.

Note - In addition to the new requirements, a tax-exempt credit counseling organization is still required to meet present law standards under section 501(c)(3) or 501(c)(4).

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