inurement
1
9.9
- noun
- /ɪˈnjʊərmənt/
- Formal
:
beneficio
- The private inurement rule applies to individuals who are in a position to exercise control or influence over the organization (also called an "insider"), such as a board member, and prohibits the organization from allowing its net earnings to inure to the benefit of an insider, no matter the amount.
Examples
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If compensation for managers is out of line with the market, it could be considered inurement, thus jeopardizing the hospital's tax status.
Academic text (1993) -
Previous examples of inurement problems have arisen when hospitals treated physicians too generously in terms of salaries and other financial relationships, such as rent and returns on investment in medical staff-hospital joint ventures.
Academic text (1993) -
That system, however, is a private inurement issue under federal tax law.
Blog text (26) -
This will happen only in extreme cases when, for example, there is a pattern of private inurement, such as clearly excessive compensation.
Academic text (1993) -
Parents participating in certain booster clubs may be considered insiders and thus, allowing a direct correlation between those parents' fundraising efforts and the benefit received would be a private inurement violation because the organization's earnings are being used to directly and specifically pay for benefits to a specific insider rather than to the class of individuals as a whole, such as an athletic team.
Blog text (26) -
There have, however, been many issues raised by the IRS in the athletic booster club context that highlight problems that may be common to all types of booster clubs, particularly when it comes to private benefit and private inurement, which can be prevalent in these environments.
Blog text (26) -
Not only would such contributions not be tax-deductible for the donor, the booster club would likely be acting as a conduit in violation of the federal tax laws regulating private inurement and private benefit by allowing such money to pass through the organization to the individual without having exercised any control, oversight, or discretion over those funds.
Blog text (26) -
The new law will ensure that non-profit organizations do not benefit from private inurement by distributing profits solely among insiders.
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During the audit, the accountant flagged instances of inurement where board members received excessive compensation.
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The organization is under scrutiny for potential inurement after allegations surfaced about inappropriate financial benefits to executives.
Synonyms
559
2.3
An advantage that gives you more money or success
72
4.3
An official court decision that gives money to someone after a legal case
5
5.1
A gift that makes someone much richer
The act of getting something you need or want
Getting something by doing certain things
Antonyms
Surface Forms
Morphology
Etymology
Inurement in law also comes from inure, but here the idea is a benefit 'coming to' someone. So when money or advantage 'inures' to a person, it 'goes to' them or becomes theirs, which is why inurement can mean receiving a profit or benefit.