Applications for exemption and miscellaneous determination requests are assigned to Exempt Organizations specialists for review. If additional information is necessary to make a determination, a specialist will contact the organization for the information. Here’s a list of questions that might be asked on this topic.
1. Please provide a current list of the assets in your investment portfolio, the name and address of the investment firm holding the asset, and the value of the asset.
2. Provide a list of the assets in your investment portfolio that are investments in limited partnerships that are not registered securities with the SEC.
3. What percentage of your assets (in terms of fair market value) is invested with each investment management organization?
4. Regarding fees, please provide the following information:
a. The fees you are (or will be) charged or assessed by each investment management organization);
b. An explanation of how the fees are calculated; and
c. A statement of whether the fees are paid to the fund manager or the investment company.
5. Explain whether you invested with any firms that have a relationship with any persons who would be considered a disqualified person for you (see Internal Revenue Code Section 4946 and Section 4958 for a definition of a disqualified person).
6. If you will acquire limited partnership interests through donations, explain what consideration, if any, you will provide to the donor upon the receipt of the donation.
7. Explain whether you have any protections in place to reduce the risks to your total investment portfolio that might be caused by everyday changes in the value of the limited partnership interests. If so, describe those protections in detail.
8. For each investment partnership in which you invest, provide the following information:
a. What percentage of your assets is invested in this partnership?
b. Is your ability to sell your investment in this investment partnership restricted? If so, describe those restrictions.
c. Does the investment partnership have the right to suspend distributions to the limited partners? If so, describe the circumstances that allow the partnership to suspend distributions.
d. Does the investment partnership have the right to suspend your ability to have the partnership redeem its investment? If so, describe the circumstances that allow the investment partnership to suspend redemptions.
e. Does the investment partnership have the right to require you to provide additional investment contributions to the partnership? If so, describe the circumstances that allow
the investment partnership to require additional investments in the partnership.
9. Explain whether you have any protections in place to reduce the risks to your ability to carry out your exempt purpose that might be caused by the limited partnerships you invest in suspending distributions, restricting the sales of your partnership interests, suspending redemption of partnership interests, or requiring additional investment contributions to the partnership. If so, describe those protections in detail.
See the complete list of Applying for Exemption/Miscellaneous Determination Sample Questions by topic.