CATEGORY
Nonprofit Charters and Constitutions
Governance

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. 

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How to Conduct Nonprofit Board Meetings
Governance

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: 

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Restricted Gifts
Fundraising Regulation

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.  

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compensation of nonprofit executives
Employment

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.

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Consequences for Violating Articles & Bylaws
Governance

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.

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online fundraising
Starting a nonprofit

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.

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The Role of Officers in a Nonprofit Corporation
Governance

The Role of Officers in a Nonprofit Corporation

Nonprofit organizations are governed by a board of directors responsible for making significant decisions and ensuring that the organization operates in compliance with relevant laws and regulations. However, to carry out the board’s responsibilities, nonprofit corporations need to have officers elected by the board.

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fund raising
Starting a nonprofit

Fundraising Regulation for Nonprofits

Charities raise funds in a variety of ways, including in person, by telephone, direct mail, email, and through internet solicitations. They also sponsor fundraising events such as dinners, galas, door-to-door sales, concerts, carnivals, sports events, and auctions. Both state law and federal law apply to fundraising activities.

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Charitable Deductions: Date of Gift Rules
Starting a nonprofit

Charitable Deductions – Date of Gift Rules

The date of gift rules can be convoluted, but they are important for 501(c)(3)s to understand. 501(c)(3)s must provide receipts to donors, which include the date on which the contribution was received. Having a healthy grasp of these rules will help facilitate donor acknowledgments and ease the burden of frantic donors requesting information come year-end. 

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