Exempt Organizations Technical Guide: Educational Organizations Other than Schools
22 August 2024
SUMMARY:The "Audit Technique Guide – Educational Organizations Other than Schools" outlines the audit considerations for organizations that serve educational purposes but do not qualify as traditional schools. The guide clarifies that educational organizations, as defined by Treasury Regulations, include those providing instruction to improve individual capabilities or disseminating useful information to the public. The guide covers various types of educational activities, such as public discussion groups, arts organizations, university bookstores, and alumni associations, while also addressing the qualifications and limitations for organizations like fraternity foundations, travel tours, and hobby clubs. Additionally, it emphasizes distinguishing educational content from propaganda through the IRS’s methodology test. The guide also discusses operational criteria, scholarship program integrity, and the need for educational organizations to meet both organizational and operational tests to maintain tax-exempt status under IRC Section 501(c)(3).
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For more information, please contact:
Desireé M. Bennett, EA - Principal
