Charity Lawyer Blog
Nonprofit Law Simplified
Policies and Procedures for Effective Nonprofit Oversight
n the complex landscape of nonprofit corporations, the role of the board of directors is crucial in steering the organization towards its mission. To ensure transparency, accountability, and sound decision-making, boards must establish and implement robust policies and procedures.
Protecting Your Nonprofit’s Trademarks
Trademark protection is essential for nonprofits of all sizes to protect their proprietary intellectual property. But registering trademarks with the USPTO is only the initial
Taxable Nonprofits
Taxable nonprofits are those entities that are organized as nonprofit entities but do not elect to become tax-exempt.
Nonprofit Charters and Constitutions
A corporation’s governing documents are fundamental to how the organization operates. In most states, a nonprofit corporation’s foundational documents generally include Articles of Incorporation and Bylaws. Though, states differ in verbiage.
How to Conduct Nonprofit Board Meetings
The extent to which a board participates in its daily operations varies. Whether your board is a hands-on board or a policy-making board, several fundamental decisions must always remain in the board’s hands:
Charging Expenses to Restricted Gifts
A sizable amount of the funding received by nonprofit organizations consists of restricted gifts meant for specific programs or projects. Many nonprofits use unrestricted operating revenue to cover the cost of managing their restricted funds, leaving the organization with insufficient unrestricted cash. These management costs, however, can often be met by the restricted fund itself.
How Should Your Nonprofit Set the Compensation of its Executives?
A nonprofit’s board of directors is responsible for establishing the compensation (salary and benefits) for the chief executive (typically referred to as either the Executive Director, the CEO, or the President). Although the IRS does not provide specific dollar amounts or an acceptable range of compensation levels, they stipulate that compensation must be reasonable and not excessive; “reasonable” is defined as the value that would ordinarily be paid for like services by like enterprises under like circumstances.
The Consequences for Violating Articles & Bylaws
Ultra vires is a Latin term conveying that acts outside the permissible scope of authority set forth in a corporation’s governing documents are an unauthorized activity that cannot be ratified by its Board of Directors. Although many states have effectively abolished this common law concept by granting corporations significant autonomy, ultra vires continue to be an important doctrine in the tax-exempt nonprofit context because such organizations are required to limit their powers to qualify for tax exemption.
Online Fundraising
The need to register is triggered by active solicitation efforts such as sending out mailers or participating in commercial co-ventures. The charity does not need to actually receive a donation to trigger registration in many states.
How to Start a Non-Profit Organization
