Starting a non-profit Archives - Charity Lawyer Blog

Nonprofit Mergers, Acquisitions, and Affiliations

Nonprofit Affiliates: Common Issues and Best Practices

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.

October 6, 2020 2 Comments

Governance

Diversify Your Nonprofit Board

While nonprofits may have a much different endgame in mind than their corporate counterparts, they can glean many benefits by incorporating a more diverse cadre of community members on their board rosters. The fresh perspectives and experiences that new and different members bring to the table result in organizations that are more nimble, effective, and ultimately better equipped to carry out their mission.

May 25, 2020 No Comments

Governance

Setting up Nonprofit Board Committees for Maximum Effect

The need for committees and which types will vary based on your organization’s age, size, and activities. Newer organizations may be able to get by with a small working board and few or no committees, while large and established nonprofits would be hamstrung without the robust use of committees.

November 4, 2019 No Comments

Nonprofit Tax

Nonprofit Law Jargon Buster – What is a Charitable Class?

Does your nonprofit serve a charitable class? It matters, because, to obtain and maintain IRS 501(c)(3) tax-exempt status, non-profit corporations must serve a charitable class.

September 30, 2019 No Comments

Fundraising Regulation

Can Non-Profits Use Donor Restricted Program Funds to Pay Overhead?

In non-profit finance and accounting, restricted contributions are those given by donors in which the donor intends the funds to be used for specific programs or purposes. As in all matters regarding donations, the stated intent of the donor rules when it comes to the purposes for which donation revenue can be allocated. If the donor allocates funds for program B, and states verbally or in writing that such funds cannot be used for administrative costs (back office, IT support, human resources, insurance, operations, etc.) to support such programming, than they cannot be used for that purpose. However, if no such explicit statement is made by the donor, non-profits can use a reasonable amount of the restricted funds received to pay for administrative costs allocable to the program designated by the donor.

September 2, 2019 No Comments

Fundraising Regulation

Quid Pro Quo Gifts – Valuing Benefits Provided to Donors

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.

November 28, 2014 No Comments

Starting a non-profit

Nonprofit Affiliates: Common Issues and Best Practices

Diversify Your Nonprofit Board

Setting up Nonprofit Board Committees for Maximum Effect

Nonprofit Law Jargon Buster – What is a Charitable Class?

Can Non-Profits Use Donor Restricted Program Funds to Pay Overhead?

Quid Pro Quo Gifts – Valuing Benefits Provided to Donors

How to Keep your Non-Profit Compliant in All 50 States

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How to Start a Non-Profit Organization