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
Many people will visit a zoo, aquarium, circus, or other wildlife organization (“Animal Organizations”) at some point in their life. Major Animal Organizations throughout the
Have you ever considered starting your own private family foundation? For those who have causes you are passionate about, creating a family foundation gives you the
Certain countries, regimes, businesses, and individuals are subject to sanctions administered by the Department of Treasury’s Office of Foreign Assets Control (“OFAC”).
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.
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.
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.
A plain language explanation of the difference between a nonprofit organization and one that is tax-exempt.
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.
