Nicholas A. Mirkay (Widener) has published Relinquish Control!  Why the IRS Should Change Its Stance on Exempt Organizations in Ancillary Joint Ventures, 6 Nev. L.J. 21 (2005). Here is part of the Introduction:

This Article attempts to provide a more tenable alternative to the control standard with respect to ancillary joint ventures. Implicit in this Article’s proposal is the following notion: exempt organizations better serve the general public and more fully achieve their exempt purpose through their ability to enter into ancillary joint ventures that are not subject to onerous restrictions like the IRS’s current control standard. As necessary background, Part II of this Article provides both a statutory framework and an analysis of related case law essential to understanding both the exemption from federal income tax and the significant issues raised by an exempt organization’s participation in a joint venture with for-profit participants. In doing so, the Article tracks the evolution of the control standard and its application to ancillary joint ventures. Although most of the cases and rulings addressing joint ventures have evolved in the exempt hospital and health care setting, this Article and the proposal set forth herein are intended to have broad application to ancillary joint ventures involving exempt organizations with missions and activities other than health care. Part III of the Article discusses and critiques two noteworthy proposals that offer an alternative to the control standard. Finally, Part IV offers an alternative proposal that provides a two-prong approach to the proper federal income tax treatment of an exempt organization’s participation in an ancillary joint venture. The alternative proposal suggests that the IRS already possesses the necessary statutory and regulatory resources that, with certain suggested modifications, will more appropriately determine ancillary joint ventures’ federal income tax treatment without imposing an economically unrealistic and overbearing control standard.