Category

Nonprofit

Preparing to Start a Nonprofit in Arizona

Preparing to Start a Nonprofit in Arizona

By | Nonprofit

The majority of nonprofits in Arizona are 501(c)(3) organizations that fall into the categories of religious, charitable, scientific, literary, or educational entities that are eligible for federal and state tax exemptions. To create an Arizona nonprofit, you first need to form an Arizona nonprofit corporation and then apply for tax-exempt status from the IRS and the state. Read More

Is COVID-19 Covered Under Your Nonprofit’s Business Interruption Insurance

Is COVID-19 Covered Under Your Nonprofit’s Business Interruption Insurance?

By | Nonprofit

Business interruption insurance typically covers financial losses to organizations caused by physical damage — a flood, a fire, high winds, or other covered perils outlined in the policy. Although some policies may include special endorsements that provide coverage for lost income due to disease or government shutdown, they do not typically cover operational shutdowns due to communicable disease contamination or infection. In fact, some business interruption insurance policies specifically exclude coverage for losses due to viral spread, especially those policies created after the 2003 SARS outbreak. Read More

The Rules for Holding a Charity Raffle in Arizona

The Rules for Holding Charity Raffles in Arizona

By | Church, Nonprofit

Due to the COVID-19 pandemic, many charities have been restricted from holding in-person fundraising events to support the mission of their organizations. Many have turned to online auctions or raffles for their important fundraising activities, but nonprofits need to be careful about following the rules for these online events so as not to jeopardize their tax-exempt status. Read More

How to Handle Nonprofit Volunteers with a Past History of Violence

How to Handle Nonprofit Volunteers with a Past History of Violence

By | Church, Nonprofit

Churches and religious ministries, probably better than any other type of institution in existence, understand that human beings are fallible. We make mistakes. We are capable of changing—from willfully malignant to behaving in a manner worthy of humanity. Therefore in a way it would fly in the face of the beliefs of many nonprofit organizations to outright ban from volunteer work someone with a past history of violence (like a single fight decades in the rear-view mirror), so long as that violence truly does lie in the past. Read More

Which Nonprofits Must File a Tax Return

Which Nonprofits Must File a Tax Return

By | Nonprofit

There is a common misconception in the public at large that nonprofits in Arizona and elsewhere are not required to file a tax return with the IRS. People hear “tax-exempt” and believe that means exempt from the roll-call. Not so. Even nonprofits must file a tax return—for the most part. Read More

What is the Donor Substantiation Requirement for Nonprofit Organizations?

What is the Donor Substantiation Requirement for Nonprofit Organizations?

By | Nonprofit

Donations are often considered the lifeblood for nonprofit organizations. Because donations are usually tax deductible for the donor, it’s not uncommon for people considering making donations to nonprofits—and those running them—to ask about the donor substantiation requirement.  Nonprofits should be aware of these requirements.

The Internal Revenue Service long ago put in place rules that lay out particular requirements for individuals to make donations that are tax deductible to charities and other nonprofits. Read More

Can Two Nonprofits Merge Together in Arizona?

Can Two Nonprofits Merge Together in Arizona?

By | Nonprofit

The concept of a merger is familiar in the for-profit sector: two corporations join together to become one corporation. The driver in this case is, as the name would suggest, profit. There is more to be gained for the corporations and their shareholders if the two officially join forces. But why might two non-profit organizations want to join forces so intimately—and is it even possible in Arizona? Read More

Can a Nonprofit Organization Accept Donations Prior to Exemption?

Can a Nonprofit Organization Accept Donations Prior to Exemption?

By | Nonprofit

It’s fairly common for a nonprofit organization to want to seek funding prior to applying for tax exemption. After all, the most logical order of operations would seem to be making sure the organization can manage some early success before bothering with administrative taxes. Yet there is a catch: nonprofits have a hard time attracting that funding before they are granted their 501(c)(3) status. Read More