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