Philanthropy.com: “The federal government is asking big nonprofits like universities and hospitals to spend too much time and money reporting on their finances and other activities, nonprofit officials told members of Congress today at a hearing held by the House Ways and Means Committee.
The wide-ranging hearing, the first in a series of sessions expected [...]
thomsonreuters.com: Today in Missoula, Montana, a lawsuit against the author of Three Cups of Tea, Greg Mortenson, was thrown out today with the judge citing “flimsy” claims by the Plaintiff:
But U.S. District Judge Sam Haddon dismissed the case for what he said was the “imprecise, in part flimsy, and speculative nature of the claims [...]
Corporate Law Report: ”According to the National Center for Charitable Statistics, there are more than 1.5 million nonprofit and tax-exempt organizations operating in the United States, from charities to industry associations to religious institutions. But whatever their structure or purpose, such organizations need to understand – and respond to – key legal and regulatory [...]
This article called “Top 10 in 2010: Legal Risks Facing Nonprofit Boards” discusses seven of the ten risks presented at a conference sponsored by BoardSource. All board members of nonprofit organizations should read this article.
The Nonprofit Law Blog has a detailed two part article called “Major Gifts: Considerations for Legal Compliance and Avoiding Lawsuits.” Part 1 and part 2 are must reads for nonprofit organizations that desire large financial contributions.
Nonprofit Law Blog has a great two part article called “Compensation Strategies and Best Practices for Nonprofit Organizations.” Part 1 and part 2 are both must reads for all officers and directors of tax-exempt organizations.
Nonprofit Law Blog: “Do fundraising professionals have to think about legal compliance and risk management? Absolutely. Do they spend an appropriate amount of organizational resources in these areas? Probably not. . . . The failure to be informed is no excuse for the failure to comply with the law and protect the organization [...]
Nonprofit Law Blog: “The Legal Guide for Association Board Members . . . was designed for corporate directors of 501(c)(6) trade associations and business societies but holds important lessons for all board members of nonprofits. The Guide consists of four principal sections: (1) The Association’s Legal Structure, (2) Association Liability for Programs and [...]
Nonprofit Law Blog: “Just as a nonprofit organization should not blindly accept any applicant as a director, an applicant should not blindly accept a director position without some understanding of the organization and his or her responsibilities. Both parties should be evaluating each other in order to mutually decide if it is a [...]
Nonprofit Law Blog: “Satisfaction of one of the public support tests under Section 509(a) of the Internal Revenue Code is one way that an organization can qualify as a public charity rather than a private foundation. . . . There is an alternative and different “one-third support test” under Section 509(a)(2) for organizations [...]
Nonprofit Law Blog: “Today, more than ever, the public and government agencies are demanding nonprofits to be transparent. . . . When Guidestar released its report ‘The State of Nonprofit Transparency, 2008: Voluntary Disclosure Practices’ in 2009, it suggested five simple steps for increasing transparency:”
One of the reasons I have formed over 2,600 Arizona companies since 2001 is my information “how to” articles on my website. I am happy to announce that I just revised my popular article called “How to Form an Arizona Nonprofit Corporation.” I updated the article to include the current fees to file [...]
Wall St. Journal: “As the leading breast-cancer charity, Susan G. Komen For the Cure helped make “for the cure” a staple of the fund-raising vernacular. The slogan is so popular that dozens of groups have sought to trademark names incorporating the phrase . . . . Komen . . . launching a not-so-friendly [...]
Federal tax law provides that a tax-exempt organization that does not file appropriate tax returns for three consecutive years automatically loses its tax-exempt status. The IRS announced that it is giving one-time relief for small exempt organizations that failed to file for three years to reinstate compliance and retain tax-exempt status. Tax-exempt organizations [...]
Tax exempt organizations that earned less than $25,000 of annual income where not previously required to file a tax return with the IRS. The tax law changed and all tax exempt organizations, including those with incomes less than $25,000 were required to file an IRS form 990 by May 17, 2010, or risk [...]
May 17, 2010, is the deadline for nonprofit corporations that are tax exempt organizations (other than churches) with less than $25,000 in income to file IRS form 990-N. A change in the law three years ago become effective on May 17th. See “Thousands of nonprofits may lose tax-exempt status” and “Thousands of non-profits could unwittingly [...]
I form a lot of Arizona nonprofit corporations. Some are tax exempt charities and some are not. A nonprofit corporation formed under Arizona law does not automatically qualify as a charity that is exempt from federal income tax. Nonprofit corporations that want to be tax exempt organizations must file an IRS form 1023 [...]
New York Times: “At midnight on May 15, an estimated one-fifth to one-quarter of some 1.6 million charities . . . will lose their tax exemptions . . . . federal legislation passed in 2006 required all nonprofits to file tax forms the following year. Previously, only organizations with revenues of $25,000 or [...]
Arizona Republic: “Six out of 10 non-profits in Arizona reported steep reductions in revenue in 2009, and officials expect the declines to continue in 2010. Revenue decreased more than 22 percent while demand for services increased by 85 percent, according to new survey results from the Arizona Alliance of Nonprofits.”
The Foundation Center has a great library of information about forming and operating nonprofit corporations, including tax exempt charitable organizations. Here are some of the topics relating to establishing a nonprofit corporation:
How do I start a nonprofit organization? ¿Cómo creo una organización sin fines de lucro en los Estados Unidos? What are [...]
Charity Lawyer: , Lindsey Harris, attorney with the Make a Wish Foundation, writes about the importance of charities using good contracts. “From protecting your brand to purchasing the goods needed to deliver your mission, contracts are an essential part any nonprofit business. Without solid contracts–the kind you can understand and actually use to [...]
Form 990, Return of Organization Exempt From Income Tax, is the IRS’s primary tool for gathering information about tax-exempt organizations, for educating organizations about tax law requirements, and for promoting compliance with tax law. The 2009 Form 990, schedules, and instructions have been revised to modify and clarify certain reporting requirements. The table [...]
Nonprofit Law Blog: “All too often, the issue of legal compliance receives attention from a nonprofit corporation only after a conflict arises. Instead, a nonprofit corporation can better prevent conflicts and protect itself through regular legal audits. Financial audits alone, while important, will not sufficiently account for the bigger issue of overall compliance [...]
Nonprofit Law Blog: 10 New Year’s Resolutions for Your Board
Th IRS announced that user fees will increase for all applications for exemption (Forms 1023, 1024, and 1028) postmarked after January 3, 2010:
$400 for organizations whose gross receipts are $10,000 or less annually over a 4-year period $850 for organizations whose gross receipts exceed $10,000 annually over a 4-year period $3,000 for group exemption [...]
The Nonprofit Law Blog has semi-famous quotes from the Jerry Sienfeld show and ties them into important nonprofit organization governance issues. The article covers a lot of important nonprofit governance ground.
CharityLawyer: “In the last decade or so, directors and officers have faced an increased exposure to personal liability. While the bulk of legal actions have been against directors and officers of for profit corporations, judgments against and settlements by directors and officers of nonprofit corporations are increasing. I am often approached [...]
Public charities should review the December 2009 version of the IRS governance check sheet used by IRS agent when examining 501(c)(3) public charities. See the IRS’ guide sheet for Completing the check sheet.
CharityLawyer: “We love getting calls from potential clients with exciting ideas. However, surprisingly often, we are in a position which we do not enjoy of letting the caller know that as exciting as their idea is, it does not qualify for tax-exemption. Some common examples of ideas that will not qualify include fundraising [...]