Joint Ventures Policy

This policy requires that ASLA evaluate its participation in any joint venture arrangements under federal tax law and take steps to safeguard the Society’s exempt status with respect to such arrangements.  It applies to any joint ownership or contractual arrangement through which there is an agreement to undertake jointly a specific business enterprise, investment, or exempt-purpose activity as further defined below.

 Joint Ventures or Similar Arrangements with Taxable Entities

For purposes of this policy, a joint venture or similar arrangement means any joint ownership or contractual arrangement through which there is an agreement to jointly undertake a specific business enterprise, investment, or exempt-purpose activity without regard to:  (1) whether ASLA controls the venture or arrangement; (2) the legal structure of the venture or arrangement; or (3) whether the venture or arrangement is taxed as a partnership or as an association or corporation for federal income tax purposes.

 ASLA will: (a) negotiate in its transactions and arrangements with other members of the venture or arrangement such terms and safeguards adequate to ensure that the Society’s exempt status is protected; and (b) take steps to safeguard ASLA’s exempt status with respect to the venture or arrangement.

 ASLA will consult with its tax advisor as necessary to ensure compliance with this policy.

ASLA Administrative Policy:  2008; R2016