Private Inurement
/ˈpraɪvɪt ɪnˈjʊərmənt/
Definitions
- (n.) The impermissible use of a tax-exempt organization's income or assets to directly benefit an insider or private individual, violating nonprofit tax rules.
Private inurement can cause a charity to lose its tax-exempt status under IRS regulations.
Forms
- private inurement
Related terms
See also
Commentary
Ensure clear identification of insiders and transactions to avoid unintended private inurement, which can jeopardize tax exemptions.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.