The IRS Tax Exempt and Government Entity division has provided
this set of five interactive lessons covering tax basics for
501(c)(3) organizations. Here, you can learn and test yourself on
the IRS rules and regulations that managers and volunteers of
tax-exempt organizations need to know. This presentation explains the difference between a non-profit and tax exempt entity. It discusses the necessary requirements to obtain non-profit status at the state and federal levels, including 501(c(3) status.
Viewers should be able to:
Explain the difference between non-profit and tax-exempt status.
List the parts of the “organizational” and “operational” tests required for 501(c)(3) status.
Distinguish between private foundation and public charity status.
Identify the main activities that might jeopardize your organization’s tax exemption.
Target Student Population:
College tax course at the junior, senior, or graduate level. Individuals/professionals interested in creating an organization that qualifies as a non-profit and/or tax exempt entity.
Prerequisite Knowledge or Skills:
An interest in nonprofits and tax exempt organizations.
Type of Material:
In class, homework assignment, or both for a junior, senior, or graduate level tax course.
Sound capacity (optional), Adobe Connect.
Evaluation and Observation
This presentation walks the user through 28 screens. It does a thorough job of supplying all relevant information concerning non-profit and tax-exempt status, i.e., 501(c)(3) status and how to keep that status. A good distinction between nonprofit and tax exempt organizations is given on slide 3. Information included is accurate. The module contains an adequate amount of material to provides a complete demonstration of the concept. It is self-contained and requires no context from an instructor. The way the links take the viewer out to the IRS website, other publications, or revenue rulings as needed is very effective.
Potential Effectiveness as a Teaching Tool
The audio enhanced presentation uses conversation between an IRS Coach and Vernon, a volunteer at a charitable organization, to engage the learner. Objectives are listed. Concepts are reinforced progressively building on prior concepts. Throughout the presentation users are given opportunities to test their understanding of the concepts presented, including a Jeopardy! like game at its conclusion. Users have the potential to learn much in a short time. This module is a very effective teaching tool with sufficient emphasis on technical concepts as well as reinforcement through sound and interactive elements. A certificate of completion can be printed at the conclusion of the session.
When moving between slides, it was somewhat disconcerting to have sound on occasion, and then not to have it.
Ease of Use for Both Students and Faculty
The module is easy to use, engaging, and visually appealing. Audio is used effectively. The unit adds elements of interactivity, including a game at its conclusion. Slide 5 of 28, which is an interactive quiz is very well done. Also slide 26 which is the risky business game, is interactive and nicely done. If users misspell answers, the tutorial will mark them wrong. A variety of graphics are used effectively. Users can move though through the tutorial at their own pace repeating components as needed. The entire module has a very professional appearance and offers users a high quality learning session.
Other Issues and Comments:
Very useful and beneficial for those interested in this area.