G

• Author: Bruce R. Hopkins
• Profession: Leading authority on the law of tax-exempt organizations
• Pages: 186-198

G

G

gain

Theword“gain”isusedtodescribeaneconomicincreaseinthevalue of an item of property;

the gain is obtainedby the owner or other holder of theproperty on a sale or exchange of the

property. This gain may be due to a tr ue increase in value of the proper ty, inati on, or both. If

the propertyinvolved is a capitalasset, the gain is termed a capitalgain. The experiencing of a

gain is, for tax law purposes, termed a realization of the gain. [CG §2.14] (also Appreciation;

Appreciation element;Recognition).

gainsharing

“Gainsharing” refers to cost-savings sharing prog rams, adopted at tax-exempt hospitals,pur-

suant to which physicians sharere venue with thehospitals generated by the provision of cost-

eective health care. These programs encourage the ecient utilization of services by enabling

physicians to benet nancially. There is risk, however, that these arrangements will trigger

the private inurement and/or excess benet proscriptions, thereby jeopardizing a hospital’s

tax exemption and/or result in the imposition of intermediate sanctions.[HC§25.5(c)].

games of chance

Sometax-exempt organizations operate various for ms of gambling as a means of fundraising.

The law refers to these gambling forms as “games of chance.” Where the game of chance is

bingo,anexception from the unrelated business income tax may be available (IRC§513(f)).

The term unrelated trade or business does not include any trade or business that consists of

the conduct of games of chance,conducted after June 30, 1981, which, under state law (in eect

as of October 5, 1983), can be conducted only by nonprot organizations;however,thisrule

is applicableonly with respect to the law in the state of NorthDakota. [UB §4.7; AU §7.7; FR

§6.10; EO §§ 25.2(h), 28.3(n); AR §14.1(l)(1)].

gaming

The IRS denes “gaming,” for Form 990 reporting purposes, as including bingo, pull tabs/

instant bingo (including satellite, event, and progressive bingo), Texas Hold-Em Poker and

other card games, raes, scratch-os, charitable gaming tickets, break-opens, hard cards,

banded tickets, jar tickets, pickle cards, Lucky Seven cards, Nevada Club tickets, casino

Bruce R. Hopkins’ Nonprot Law Dictionary, First Edition. Bruce R. Hopkins.

©2015 Bruce R. Hopkins. Published 2015 by John Wiley& S ons,Inc.