The nonprofit should not estimate the value of a donor’s non-cash contribution. The nonprofit is under no obligation to appraise the value of a contribution and should not attempt to do so. The burden of valuing the contribution rests solely on the donor.
The Guidance is clear – charter schools must have nondiscriminatory student discipline policies implemented in a nondiscriminatory manner. The Guidance draws a distinction familiar in the area of employment law: disparate treatment and disparate impact. Under Title IV and VI of the Civil Rights Act as well as under Arizona law, charter schools must create and enforce a nondiscriminatory student discipline policy.
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.
Many founders feel guilty accepting reasonable compensation from the nonprofit they have nurtured but if they continue to forgo a reasonable salary, they risk erecting a house of cards that will fall apart as soon as they burn out.
Today, the Internal Revenue Service released the new Form 1023-EZ application form to reduce processing delays and help small charities apply for 501(c)(3) tax-exempt status more easily.
The state form does not include the tax provisions that the IRS requires tax-exempt organizations to have. Would be founders that file using the state’s form Articles of Incorporation without including an attachment with the appropriate tax provisions will end up with a taxable nonprofit – a result almost no one intends.
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.”
The goal of the streamlined application process is to permit small charities without complex issues to get up and running more quickly. The streamlined application will also permit the IRS to spend less time reviewing applications and more time focusing its energies on monitoring compliance for organizations that have been approved.
Giving donors the power to restrict their gifts for a specific purpose or program or to restrict the timing and amount of expenditures can be a powerful giving incentive. Restrictions give donors comfort that their gift will be used as they envision.
While board service can be one of the most rewarding ways to give back, a bad fit or poor performance can lead to a difficult and even potentially costly board service experience.
The IRS has posted in links to the questions Exempt Organizations specialists are instructed to ask in relation to various issues raised by applications for exemption and miscellaneous determination requests.
Whenever nonprofit directors, officers or staff members’ personal interests are impacted by their decision-making on behalf of the nonprofit, conflicts of interest can arise. All nonprofits encounter conflicts and all nonprofits need to understand effective conflict management.
Everyday nonprofits seek to change the world on what often seems to be pennies on the dollar. Nonprofit leaders commonly think of grant money and tax-deductible donations when fundraising, but in many states being a nonprofit allows certain nonprofits to legally conduct gambling activities that would otherwise be criminalized under state law. Inadvertently violating these gambling laws can have steep consequences so if your organization is planning an event that involves some form of gambling, it pays to do it right.
n the context of a nonprofit corporation, a quorum is the number of board members that must participate in a board meeting to permit official business to be transacted at the meeting.
This very helpful Procedure sets forth streamlined processes organizations whose tax-exempt status has been automatically revoked for failure to file required annual returns or notices for 3 consecutive years to regain their tax-exempt status retroactive to the date of of revocation.
At the end of each year we like to look back at our most popular posts to evaluate what our readers are finding most interesting and useful on the blog.
We are used to hearing lots of folks – including yours truly – complain about the “nonprofit birth control” problem in this country. While it is true that too many nonprofits are formed for the wrong reasons – there are also many good reasons to form a new nonprofit. The trick is to learn to tell the difference.
To folks who are new to nonprofit governance, grasping the difference between directors and officers of a nonprofit corporation can be confusing.
Many small nonprofits without sufficient funds to hire a fundraiser on a fee for service basis view percentage based compensation as a godsend. First, percentage based compensation permits the nonprofit to gain the assistance of a professional fundraiser without any risk to the nonprofit’s bottom line. In addition, the fundraiser is likely to be more motivated if they are paid based upon the funds raised.
The Washington Post has identified over 1,000 nonprofit organizations that have reported a “significant diversion” of assets. Its important to note that there are over 1,616,000 tax-exempt nonprofits in the U.S. today; thus, these filings represent less than 1% of tax-exempt nonprofits. It’s also interesting to note that a quick review of Arizona’s list includes only 21 organizations – most of which reported the diversions in a clear, transparent, and confidence inspiring manner.