Here at L&E Prof Blog, we know that we're not your first stop on the internet. So we assume you know about those crooked, crooked FIFA officials. We're shocked, too…rumors that the bar in the hotel where the officials were arrested is named "Ricks" are too thematically appropriate to be true. What you may not know is that FIFA USA is a tax-exempt entity under U.S. law, a so-called "501(c)(4)" organization. That's an entity that pays no tax but cannot receive deductible contributions (in contrast to 501(c)(3) entities, which can).
Both c(3) and c(4) organizations face prohibitions on so-called "excess benefit" transactions, which are basically when insiders exploit their position for personal gain. Ahem. Typically penalties are limited to fines on the insiders and the organization, but in cases where the corruption is pervasive throughout the organization, the organization can also potentially lose its exempt status.
Should FIFA be concerned about losing their exemption? Well, looking at their 2013 tax return, they have more than $1 billion in U.S. revenue, mostly from royalties. They also report substantial expenses, so perhaps that wouldn't be $350 million in annual taxes, but tens of millions, at least. Another good nugget from the return: although FIFA does have a conflict of interest policy, it does not require its officers and directors to disclose any conflicts, and it does not "regularly and consistently enforce" the policy. You don't say.
{Update 4:37}: A chuckleworthy update: in defending his organization, FIFA President comments, "We, or I, cannot monitor everyone all of the time." Indeed. But perhaps they might try monitoring some of them some of the time? Less snarkily, this seems to be an effort to mount something of an ostrich defense. Which might work, if believed, for Blatter's personal criminal liability, but isn't guarantee to shield the organization from tax penalties for the self-dealing transactions.