Each year, the IRS Tax Exempt and Government Entities (TE/GE) division releases a letter outlining their work plan for the upcoming year. On October 3, 2018, the TE/GE issued their Fiscal 2019 Program Letter.
Hurricane Relief – Donor Beware!
Familiarize yourself with the organization, its mission, and its effectiveness before giving. Always ask for information in writing – be wary if an organization will not provide information about charitable programs and finances upon request. Any legitimate organization will be happy to send you information. Check guidestar.org to review the organization’s financial data and learn more about its mission and finances. Understand that its common for scammers to set-up websites with confusing similar names to well-known charities to steal personal information from those trying to donate. Scammers are also known to set up fake GoFundMe accounts.
Nonprofits Going Global
Increasingly, US NGOs seek to operate overseas. When a US nonprofit expands its activities across borders, whether by making grants or running programs, the compliance obligations of multiple countries can quickly become overwhelming.
Arizona Corporation Commission – Online Services
In May 2018, the Arizona Corporation Commission released a major update to their website’s online services. Users can create an […]
IRS’ Debuts New and Improved Exempt Organization Search
The IRS has debuted a new and improved exempt organization search page. Previously, the public could use the IRS’ Select Check tool to lookup an organization by name or EIN. However, Select Check only permitted confirmation of an organization’s tax-exempt status and whether the organization was a public charity or private foundation.
Nonprofit Board Oversight
A nonprofit’s board of directors is legally responsible for exercising the care an ordinarily prudent person in a like position would exercise in overseeing the organization’s operations. This includes the organization’s finances and legal compliance.
Fundraising – When to Seek Permission
Fundraising to carry-out a nonprofit’s charitable purpose is necessary for the survival of the organization. However, holding a 501(c)(3) tax exemption does not give unlimited permission to fundraise. Many nonprofits are unaware of charitable solicitation laws within their own state much less other states where they may be asking for and/or receiving contributions.
New Form 1024-A: Exemption Application for 501(c)(4) Organizations
The IRS has issued a new Form 1024-A, Application for Recognition of Exemption under Section 501(c)(4) of the Internal Revenue Code for an organization that chooses to apply for recognition of exempt status under Section 501(c)(4).
Changes to Form 1023-EZ
The IRS has revised Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, and its instructions which went into effect January 10, 2018. The $275 1023-EZ user fee remains the same. The changes are designed to reduce filing errors and increase compliance with respect to those eligible to file Form 1023-EZ. Form 1023-EZ filers must now complete the following:
Good News for Nonprofits Moving to a New State
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,
Tax Cuts and Jobs Act – Tax Exempt Organization Provisions
he Tax Cuts and Jobs Act (HR 1 ) is on its way to the White House for President Trump’s expected signature before the weekend. The bill is set to bring about widespread changes to the US tax code for both businesses and individual Americans. However, it also impacts tax-exempt organizations.
Gifts That Do Not Qualify for the Charitable Deduction
Not every contribution to a charity qualifies for a charitable deduction. Charities that misunderstand the rules can lead donors astray when they offer tax receipts for non-deductible gifts inadvertently damaging donor relationships.
Moving a Nonprofit to Another State
Nonprofits leaders often desire to move their nonprofit organization’s legal domicile from one state to another. Leadership may decide to move and wish to take the organization with them. In cases where the work is dispersed around the country, the organization may become frustrated with burdensome regulation in the state where it is domiciled and decide shop for a more favorable legal home.
Proposed Changes to Form 1023-EZ
On September 28, 2017, the IRS Tax Exempt and Government Entities division released its FY 2018 work plan. Of interest to nonprofits and their advisors, the IRS is planning to make changes to Form 1023-EZ early in 2018. These changes are in response to the concerns of stakeholders regarding whether the 1023-EZ process requires too little information.
The Combined Federal Campaign – A Valuable Fundraising Tool for Eligible Charities
To be eligible for the CFC, national and international charities must provide services, benefits, assistance, or conduct program activities in 15 or more different states or one or more foreign countries over the immediately preceding 3 calendar years.
Nonprofit Law Jargon Buster – What is a “Registered Agent”?
Nonprofits corporations are required to have a registered agent in their state of domicile and in each state where they are registered to do business. The purpose of a registered agent is to ensure that there is a place with a street address (as opposed to a P.O. Box) where an organization can be contacted or served with notice of a lawsuit or other legal action.
Sharing Employees
When affiliated nonprofits work closely together, it is often cost effective to have some shared staff. When structuring shared staffing arrangements, it is important to carefully consider and document how costs will be allocated between the organization. Common arrangements include employee leasing and employee loan arrangements.
Winos Rejoice! Arizona’s New Liquor Laws for Charities
Charitable organizations in Arizona may serve and auction alcohol at fundraising events provided that they obtain the necessary special event licenses. Additionally, civic organizations, religious organizations, and fraternal organizations in existence for more than five years with regular membership are eligible to apply for special event licenses.
Form 990 Deadline for Calendar Year Taxpayers
Today, May 15th is an important tax date for nonprofits whose fiscal year ends June 30th or December 31st. If the organization’s fiscal year ends June 30th, today is the last day to file the federal tax form.
Don’t Gamble with Washington’s Gambling Laws
Gambling activities are a popular way to raise funds for your nonprofit organization. However, under Washington law gambling is illegal unless specifically authorized by statute.