IRS Logo
Print - Click this link to Print this page

Additional Requirements for Supporting Organizations

Supporting organizations are subject to additional requirements under the Pension Protection Act of 2006. The IRS has issued guidance and new procedures implementing the legislation.

  • The IRS and Treasury Department final regulations (Treasury Decision 9746) on December 23, 2015, defining functionally integrated Type III supporting organizations and implementing a payout requirement for Type III organizations.
  • Supporting organizations may be subject to intermediate sanctions excise taxes with respect to payments to and transactions with substantial contributors or certain related parties. See Notice 2006-109, below, for more information.
  • Donors are provided guidance on how to determine whether a grantee is a public charity under section 509(a)(1), (2), or (3), in IRS Business Master File information.
  • Responding to Congressional direction, the Treasury Department reported the results of a study of supporting organizations and donor-advised funds in December 2011.
  • Supporting organizations that want to change their public charity classification should file Form 8940, Request for Miscellaneous Determination.
  • Notice 2014-4 provides interim guidance on issues affecting supporting organizations and sponsoring organizations of donor advised funds
  • The IRS explained how foundations should treat distributions to certain supporting organizations.


Page Last Reviewed or Updated: 13-Apr-2017