Is It Time to Form A Corporate Foundation?

To better coordinate their philanthropy, many companies choose to create corporate foundations to organize, focus, track, and publicize their philanthropic efforts.Continue Reading

Annual Report Email Reminders from the Arizona Corporation Commission

Just released this month, the Arizona Corporation Commission now offers annual report email reminders for entities incorporated in Arizona; all you have to do is sign up! All corporations, including nonprofits, incorporated in Arizona must file annual reports with the Arizona Corporation Commission. Due dates are a predictable one year from the date of incorporation; however, with the many thingsContinue Reading

New Interactive Form 1023 Available for Review

In an effort to make applying for tax exemption easier, the IRS Exempt Organizations (EO) office is developing an Interactive Form 1023, Application for Recognition of Exemption (“i1023”). Continue Reading

Where The &%!?# Is My Exemption Application?

Just a few months ago, we were still telling clients to expect the process to take approximately one year. Now we are telling clients to prepare to wait two full years before they receive a determination letter.Continue Reading

Nonprofit Dissolution: How to do it Right

Nonprofit corporations are often faced with tough decisions about their future. For a variety of reasons, a nonprofit’s board may determine that dissolution is the best answer. Causes range from dwindling resources to a reduction in the need for the nonprofit’s services. Should the Board determine that dissolution is the best option for a nonprofit, there are business and legal steps that must be taken to properly wind down and dissolve the nonprofit. Continue Reading

Senate Finance Committee Report Identifies Issues and Proposes Solutions

On June 13, 2013, the Senate Finance Committee released a cooperative, bipartisan report comprised of suggestions on how (and why) to change government regulations on tax-exempt/nonprofit organizations and on the rules of charitable giving. The Committee’s Report set forth a number of issues that need to be addressed in the nonprofit and charitable giving arena, and offer a number of potential solutions.Continue Reading

Entity Selection for Nonprofits

A major advantage nonprofit corporations have over other forms of charitable entities is if a nonprofit corporation is properly managed and operated, it can provide a greater degree of personal liability protection to its directors and officers. Continue Reading

Tips for Nonprofit Employers Outsourcing Payroll Duties

Many nonprofits outsource payroll processing as a cost effective way to handle their payroll compliance and human resource functions. We have seen several cases where unscrupulous payroll service organizations have taken advantage of nonprofits so the advice below is timely for our clients.Continue Reading

CLG is Proud to be a B!

We are often asked – what exactly is a B Corporation? B Corporations are a new kind of company that uses the power of business to solve social and environmental problems. You can think of a B Corporation certification as analogous to a Fair Trade or LEED certification, but for a business instead of a bag of coffee or a building.Continue Reading

Considerations When Conducting Activities in a New State

From time to time we see nonprofit clients adding employees in states in which they haven’t operated before. Often it is just one employee, perhaps a development person working from their home or a shared workspace. Although hiring an employee in another state may not seem like a significant event, many businesses don’t realize that it triggers several compliance obligations.Continue Reading

Arizona Abolishes Solicitation Registration

Arizona House Bill 2457 repeals Arizona’s solicitation registration laws and does away with the need for Arizona charities to file annual Charitable Organization Registration/Renewal forms with the Arizona Secretary of State.Continue Reading

IRS Audits of Tax-exempt Entities

Although there are many reasons a nonprofit organization may be selected for an audit, several things heighten the chance of being selected. Things like irregularities on Form 990s, failure to file a Form 990, citizen complaints, having a relationship with another taxpayer currently being audited or receiving negative media attention can all increase your chance of being audited beyond the random internal IRS computer process.Continue Reading

Arizona Adopts the Benefit Corporation

Arizona recently passed benefit corporation legislation (SB 1238). Arizona joins fifteen other jurisdictions including California, New York and the District of Columbia that have already passed legislation. While the new law is not effective until December 31, 2014, the Arizona benefit corporation offers social entrepreneurs an important new option to consider when forming a new venture.Continue Reading

Risky Business – Using Unlicensed Images

A simple explanation of copyright law is that if you did not create it, get a license to use it, or purchase it, you are likely in violation of copyright law. Further, copyright infringement is a strict liability offense. If you use someone’s image without a license to use it, you infringe upon their copyright. This is so even if you paid a website designer or other third party and they posted the image without your knowledge.Continue Reading

Arizona Open Meeting Law Basics

We are often asked whether nonprofits must follow Arizona open meeting law (“OML”). Generally, nonprofits are not required to follow open meeting law; however, there are some exceptions – most notably charter schools. Charter schools are treated as public institutions for OML purposes because they are both funded with state tax dollars and are overseen by the state.Continue Reading

IRS Launches Compliance Check of 1300 Self-declared 501(c)(4),(5) and (6) Organizations

As the IRS Exempt Organizations division indicated in its 2013 work plan, it is conducting a compliance check of self-declared tax-exempt organizations. The IRS recently mailed over 1,300 questionnaires to self-declared Section 501(c)(4), 501(c)(5), and 501(c)(6) organizations. The project is part of the IRS’ plan to gather information about self-declared exempt organizations, determine whether self-declared exempt organizations are complying with applicable tax-exempt law, and increase voluntary compliance.Continue Reading

Top Ten Tips for Preventing Theft and Embezzlement

It seems like a new story breaks every week about a charity being exploited by an insider. Charities lose an estimate of 7%-13% percent of their annual profits to theft, embezzlement, or fraud, to the tune of approximately 40 billion dollars a year.Continue Reading

Obtaining Tax-exempt Status for Your Church

Religion is a charitable purpose and therefore many types of religious organizations qualify for tax-exempt status. However, a “church” is entitled to special privileges under the law.Continue Reading

IRS Unveils Temporary Expanded Worker Classification Settlement Program

t the end of 2012, the IRS introduced a voluntary classification settlement program (“Settlement Program”) to provide an incentive for employers with misclassified workers to comply.[1] The Settlement Program temporarily relaxes previous requirements and provides additional tax savings for those who qualify. Continue Reading

Better Safe than Sorry: Nonprofits’ use of Waivers, Releases and Disclaimers

Many nonprofits use some form of waiver or release in their programs. Typically, volunteers and participants are asked to assume the risk of participation and hold the organization harmless if they are injured. However, waivers and releases are not foolproof as many courts do not favor them. Still, they are often successful, and nonprofit organizations have nothing to lose in requiring them.Continue Reading