The CTA introduces new reporting requirements for certain U.S. companies. Tax-exempt organizations are not required to file these reports.
Ultimately, the decision between state and federal registration depends on the unique circumstances and position of each nonprofit.
While the calendar year is the default option, nonprofits have the flexibility to choose a different fiscal year that aligns better with their operations and reporting needs.
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.
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.
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.
Internal Revenue Code § 513(a)(1) excludes from UBIT unrelated trade or business activity which is performed without compensation (the “Volunteer Labor Exclusion”).
U.S. “Friends of” organizations are designed to facilitate US support for a foreign charity. U.S. donors commonly seek to support a foreign charitable organization aiding
So you think you want to start a nonprofit in Arizona? Our firm receives many calls weekly from people who want to start a nonprofit
The Supreme Court, as recently as 2021, in NCAA v. Alston, has made clear that not-for-profit organizations are subject to antitrust laws the same as
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.