Questions to Assist in Conducting a Private Benefit Analysis

This cheat sheet was adapted and edited from Andrew Dana. It explains the core concepts of private inurement and private benefit and tests to check for them.

This resource outlines the key elements of private inurement and impermissible private benefit and provides examples in the conservation context.

At the heart of tax-exempt status under section 501(c)(3) is a requirement that a charity be operated for a public, rather than a private, benefit. The conundrum that is private benefit has successfully withstood fifty years of efforts at explication. This outline will review those efforts.

Land Trust Standards and Practices, Practice 2C. Federal Tax Exemption, includes one element with four sub-elements. This module addresses Practice 2C1b: Do not knowingly engage in prohibited activities, such as private inurement or impermissible private benefit.

This reference delves into triage of risks, identify where flexibility exists and illustrate application with a series of case studies. Common issues include service delivery to landowners, transfer of development rights, program facilitation fees and conservation easement violations to name a few.

This is a conflict of interest and pecuniary benefit transaction policy from the accredited Monadnock Conservancy.

1990 EO CPE Text