Introduction

• Focus on 501(c)(3) bonds and institutions
• Relevance for governmental bonds and public institutions
• Overview of tax-exempt bonds and post-issuance compliance
• Overview of presentation

Private Business Use—Legal Principles

• Basic principles (definition, measured issue by issue, limit, etc.)
• Differences between 501(c)(3) and governmental bonds
• Common types of private business use
• Exceptions

How to Calculate Private Business Use

• Legal principles
• Examples of calculations for new money issue and refunding issue

Alternative Tests and Arbitrage

• Private payment or security test
• Arbitrage

Questions and Answers

IRS Enforcement

• 2006 501(c)(3) bond audit initiative
• 2007 501(c)(3) bond questionnaire (and 2009 governmental bond questionnaire)
• Schedule K

Implementing a Bond Compliance Plan: A 10 Step Plan

• Initial private business use review
• Completing Schedule K
• Other "ten steps"

One Institution's Approach to Private Business Use Compliance

Questions and Answers