Nonprofit affiliation should always be considered before a decision to dissolve. Nonprofits considering dissolution are thinking creatively and working to survive some of the toughest
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,
To reap the tax-advantaged and protective benefits of conducting business through multiple entities, organizations must take care to respect the formalities of the arrangement. This includes remaining independent and dealing with each other at arm’s length, having separate board meetings, implementing conflict of interest policies, documenting transactions between the entities, and ensuring fair market value payment for any benefits received by affiliates.
We all know that 2020 has been a brutal year for nonprofits. Unfortunately, we are starting to see more nonprofits struggle with sustainability. We have helped many organizations wind-down their operations over the years, and in most cases, there have been one or more core programs that could be salvaged. In many cases, a joint partner allowed the charity to continue its most viable programs in one form or another.
We’ll spare you the pandemic intro; we know that nonprofits are acutely feeling the effects of the current financial crisis. And uncertainty about COVID-19 virology and what a new normal might look like is frustratingly confounding. But now is not the time for magical thinking, according to a panel of experts recently convened by BoardSource. We participated in their webcast to learn more about how nonprofits can best navigate the hard decisions ahead.
We have written about how to form chapters and affiliates, but sometimes nonprofits ultimately decide they have created too many affiliates, or that their affiliates
When considering acquiring another nonprofit, there are two types of acquisitions that are typically considered “ an asset purchase and a merger transaction. Several factors, including due diligence, payment of consideration, assumption of liability, assignment of contracts (including endowment agreements), existence of planned gifts, future operating goals and applicable state and federal laws, should be considered in determining the structure of the potential transaction.
The IRS recently issued a favorable ruling for nonprofits looking to move their domicile from one state to another. Common reasons that nonprofits seek to change their state of incorporationinclude a change in physical location, increasing regulatory burdens, or a lack of meaningful connection to the original state of incorporation. In such cases,
Prior to passage of AREA, an entity seeking to change its structure likely had to undergo a multi-step transaction to accomplish its goal. AREA permits direct conversions and makes clear that it applies to all entity types (corporations, nonprofits, benefit corporations, LLCs, partnerships, etc.).
I am fortunate to represent a number of established and growing nonprofits, some of which are expanding into new geographic areas and new markets or scaling up their existing operations to meet demand. I am often asked to advise them on how best to structure their organizations to accommodate growth. Invariably, my answer is the classic lawyer answer – it depends.
Most states require you to register your organization if you solicit donations from their residents. Many states also require registration if your organization collects substantial or ongoing donations from their residents, even if you aren’t specifically targeting donors in that state. Download our comprehensive list of each state’s requirements.
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.