Nev. Rev. Stat. § 374.3306 — Requirements for organization created for religious, charitable or educational purposes

NRS  374.3306    Requirements for organization created for religious, charitable
or educational purposes.
1.  For the purposes of NRS 374.3305 and 374.353 , an organization is created for
religious, charitable or educational purposes if it complies with the
provisions of this section.
2.  An organization is created for
religious purposes if:
(a) It complies with the requirements set forth
in subsection 6; and
(b) The sole or primary purpose of the
organization is the operation of a church, synagogue or other place of
religious worship at which nonprofit religious services and activities are
regularly conducted. Such an organization includes, without limitation, an integrated
auxiliary or affiliate of the organization, men’s, women’s or youth groups
established by the organization, a school or mission society operated by the
organization, an organization of local units of a church and a convention or
association of churches.
3.  An organization is created for
charitable purposes if:
(a) It complies with the requirements set forth
in subsection 6;
(b) The sole or primary purpose of the
organization, considering the factors set forth in subsection 5, is to:
(1) Advance a public purpose, donate or
render gratuitously or at a reduced rate a substantial portion of its services
to the persons who are the subjects of its charitable services, and benefit a
substantial and indefinite class of persons who are the legitimate subjects of
charity;
(2) Provide services that are otherwise
required to be provided by a local government, this State or the Federal
Government; or
(3) Operate a hospital or medical facility
licensed pursuant to chapter 449 or 450 of NRS; and
(c) The organization is operating in this State.
4.  An organization is created for
educational purposes if:
(a) It complies with the requirements set forth
in subsection 6; and
(b) The sole or primary purpose of the
organization is to:
(1) Provide athletic, cultural or social
activities for children;
(2) Provide displays or performances of
the visual or performing arts to members of the general public;
(3) Provide instruction and disseminate
information on subjects beneficial to the community;
(4) Operate a school, college or
university located in this State that conducts regular classes and provides
courses of study required for accreditation or licensing by the State Board of
Education or the Commission on Postsecondary Education, or for membership in
the Northwest Association of Schools and of Colleges and Universities;
(5) Serve as a local or state
apprenticeship committee to advance programs of apprenticeship in this State;
or
(6) Sponsor programs of apprenticeship in
this State through a trust created pursuant to 29 U.S.C. § 186.
5.  In determining whether, for the
purposes of subsection 3, an organization is created for charitable purposes,
the Department and Nevada Tax Commission shall consider, without limitation,
whether the organization:
(a) Operates exclusively for any exempt purpose
under section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. § 501(c)(3),
and the organization is recognized as exempt by the Internal Revenue Service
pursuant to section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. §
501(c)(3);
(b) Provides relief to the poor, distressed or
underprivileged;
(c) Supports the advancement of religion;
(d) Provides for the advancement of education or
science;
(e) Helps lessen the burden of government;
(f) Supports efforts to eliminate prejudice and
discrimination;
(g) Aids in defending human and civil rights
secured by law; or
(h) Combats community deterioration and juvenile
delinquency.
6.  In addition to the requirements set
forth in subsections 2 to 5, inclusive, an organization is created for
religious, charitable or educational purposes if:
(a) No part of the net earnings of any such
organization inures to the benefit of a private shareholder, individual or
entity;
(b) The business of the organization is not
conducted for profit;
(c) No substantial part of the business of the
organization is devoted to the advocacy of any political principle or the
defeat or passage of any state or federal legislation;
(d) The organization does not participate or
intervene in any political campaign on behalf of or in opposition to any
candidate for public office; and
(e) Any property sold to the organization for
which an exemption is claimed is used by the organization in this State in
furtherance of the religious, charitable or educational purposes of the
organization.