Category

Nonprofit

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

Mitigating the Risk of Church Property Disputes

How to Handle Church Property Issues

By | Church, Nonprofit

The particular manners in which church property disputes arise are as numerous as the lilies of the field. But those that are peculiar to churches (as opposed to the more standard types of property dispute, such as issues that arise concerning payment of property tax, or even in such an ordinary circumstances as the selling or leasing of land) do tend to cluster into some more-common patterns. Read More

Must You Report Donors on Schedule B of Form 990?

Must You Report Donors on Schedule B of Form 990?

By | Nonprofit

For some time, Internal Revenue Service Form 990, “Return of Organization Exempt From Income Tax” legally required every tax-exempt organization—alongside nonexempt charitable trusts and section 527 political organizations—to report to the IRS the names and addresses of any contributors who over the course of a given year made gifts to that organization in the amount of $5000 or more. Recently, however, the IRS made clear that it intended to do away with this requirement only as it relates to 501(c)(4) tax-exempt organizations.  And now it has done exactly this in an issuance of final regulations that went into effect on May 28, 2020. Read More

Who’s in Charge Here?: Nonprofit Boards and Executive Committees

Who’s in Charge Here?: Nonprofit Boards and Executive Committees

By | Nonprofit

It’s not uncommon for the board of a nonprofit to empower an executive committee to act on the board’s behalf during times when the board is out of session. Especially when the full board cannot be convened expeditiously, boards may find an executive committee to be an attractive alternative. On the other hand, some boards form an executive committee because they simply perceive that other nonprofits have one. Read More