Category Archives: Uncategorized

When to Start a Nonprofit

We are used to hearing lots of folks – including yours truly – complain about the “nonprofit birth control” problem in this country. While it is true that too many nonprofits are formed for the wrong reasons – there are also many good reasons to form a new nonprofit. The trick is to learn to tell the difference. Continue Reading

Getting the Most out of Board Meetings by Kimberly Witherspoon

When Board members gather, what are ostensibly shared interests and goals may in fact consist of different or divergent underlying priorities making it difficult to reach consensus.  Here is a short list of proven tools to overcome differences and successfully accomplish the goals that will further the interests of your Board The Board Chair Should… Continue Reading

Clarity at Last! Contributions to Charities’ Single Member LLCs are Deductible

The IRS has issued Notice 2012-52 advising taxpayers that if all other requirements for deductibility are met, contributions to domestic single-member limited liability companies that are wholly owned and controlled by a U.S. charity will be treated as a charitable contribution to a branch or division of that charity. Background. Charities frequently create single member… Continue Reading

MOUs versus Contracts

Nonprofits tend to view MOUs as a kinder gentler way to document their intentions.  However, a contract is, at its core, an offer by one party to do something, an acceptance by the other party, and the promise to exchange something of value to seal the deal. Under this definition, the MOUs we see nonprofits create are almost always bare bones legal contracts.
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Arizona’sTransaction Privilege Tax – How it Applies to Nonprofits

Non-profit organizations that are tax-exempt from federal and state income tax are not necessarily exempt from state and local taxes. In lieu of a sales tax, Arizona imposes a Transaction Privilege Tax (“TPT”) on seventeen separate business classifications. Certain tangible personal property and retail sales transactions are exempt from Arizona’s TPT.

The general rule is that sales made to churches, schools, and other non-profit organizations are taxed. However, under the Arizona Revised Statutes (“A.R.S.”) the following types of transactions are not subject to the State of Arizona’s Transaction Privilege Tax: Continue Reading