Exempt Organizations Technical Guide: Private and Charter Schools
22 August 2024
SUMMARY:The "Audit Technique Guide – Private and Charter Schools" provides a comprehensive framework for auditing tax-exempt private and charter schools, as well as colleges and universities. The guide outlines key factors to determine if these institutions meet the requirements under IRC Sections 501(c)(3), 509(a)(1), and 170(b)(1)(A)(ii), which include maintaining a regular faculty, curriculum, and student body, among other criteria. Additionally, it addresses foundation classification, racial nondiscrimination policies, and child care educational guidelines. The guide also covers the governance and operational practices of charter schools, emphasizing the need for independent board oversight and arm's-length contracting with management companies. The document further discusses the implications of unrelated business income and excessive compensation concerns, offering detailed legal precedents and audit procedures to ensure compliance with the applicable tax-exempt standards.
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For more information, please contact:
Desireé M. Bennett, EA - Principal
