CATEGORY
Tax-exempt Purpose
Starting a nonprofit

Tax-exempt Purpose

There are 29 different exemptions under Code Section 501, the most popular of which is Section 501(c)(3). If the corporation plans to qualify for tax-exemption under Section 501(c)(3), the articles must limit the corporation’s activities to tax-exempt purposes. Tax exempt purposes include:

religious,
charitable,
scientific,
testing for public safety,
literary,
educational,
to foster national or international amateur sports competition, or
promote the arts, or for the prevention of cruelty to children or animals.

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Choice of Domicile for Nonprofit Corporations
Starting a nonprofit

Choice of Domicile for Nonprofit Corporations

Over the years we have worked with organizations in many different states and have had the chance to form some opinions about choice of domicile for nonprofits. Some of the factors that have influenced our thoughts on this matter include states requiring mandatory audits, multiple agencies overseeing nonprofits, unclear statutes governing nonprofit corporations, and aggressive regulation.

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Fiscal Sponsorship vs. Fiscal Agency
Starting a nonprofit

Nonprofit Jargon Buster Fiscal Sponsorship vs. Fiscal Agency

The term “Fiscal Sponsorship” describes an arrangement between a non-profit organization with 501(c)(3) tax exempt status and a project, often a new charitable effort, conducted by an organization, group, or an individual that does not have 501(c)(3) status. Fiscal sponsorship permits the exempt sponsor to accept funds restricted for the sponsored project on the project’s behalf. The sponsor, in turn, accepts the responsibility to ensure the funds are properly spent to achieve the project’s goals. This arrangement is useful for new charitable endeavors that want to test the waters before deciding whether to form an independent entity as well as temporary projects or coalitions that are looking for a neutral party to administer their funds.

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Nonprofit Tax

Taxable Subsidiaries

501(c)’s are organized and operated to serve charitable or other purposes, which allow them to be exempt from federal taxation. However, that tax exemption only

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Nonprofit Board Governance
Governance

Top 15 Non-profit Board Governance Mistakes

Boards are entitled to delegate tasks to committees, officers, staff, or in certain cases, professionals, but only if they perform sufficient oversight. Oversight is commonly exercised through policies and procedures so long as the board ensures that the policies and procedures are actually followed. Common oversight mechanisms include review of financial statements and the annual Form 990 as well as the implementation of various governance policies.

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Governance

Nonprofit Bylaws – What to Include and What to Leave Out

It is important to take a thoughtful approach when drafting or revising bylaws. Boards and board committees sometimes spend months or even years trying to draft the perfect set of bylaws . Too often, they look to bylaws of other nonprofit organizations or samples gleaned from the Internet with no regard to whether the bylaws match the structure and style of the organization or comply with state and federal law. Unfortunately, this approach usually leads to confusion, delay, and conflict on the board. The better practice is to work with a knowledgeable attorney from the beginning, starting with a compliant template, and tailoring it to the needs of your organization.

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Uncategorized

Cryptocurrency Donations for Nonprofits

Cryptocurrency is emerging as a mainstream form of currency, which opens the door to new fundraising opportunities for nonprofits. Some organizations have already begun accepting donations in

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Who owns a nonprofit?
Governance

Who Owns a Nonprofit Corporation?

Let’s be clear about one thing. No one owns a nonprofit corporation.[1]

While there is no outright ownership, there is control. One of the fundamental questions I ask when forming a new nonprofit corporation is how board members will be selected. This is a key question because those who hold the power to select board members retain the ultimate authority over the corporation.

The possibilities are limited by the nonprofit corporation statute in the state where the corporation is domiciled.

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Nonprofit Mergers, Acquisitions, and Affiliations

What is a Trademark?

A trademark is a protection of a good or service that is unique to your nonprofit. It can be a word, phrase, slogan, symbol, design,

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How to Start a Non-Profit Organization

Download our free guide to learn about the many elements needed to run a successful nonprofit organization, as well as how to avoid common pitfalls and mistakes.