Category

Nonprofit

Can a Nonprofit Be Held Liable for a Volunteer’s Actions?

Can a Nonprofit Be Held Liable for a Volunteer’s Actions?

By | Nonprofit

Volunteers often make up an essential core of a nonprofit’s operations, helping with daily administration duties and activities. They may also help with special events, like public outreach drives. A nonprofit’s leadership team may even be comprised of a mix of volunteers and salaried employees. When an organization relies on the help of volunteers, it needs to understand how it may be held liable for its volunteers’ actions. Read More

The Dual Nature of Nonprofit Governance

The Dual Nature of Nonprofit Governance

By | Nonprofit

The term ‘governance’ generally refers to the administration or management of an organization. However, nonprofit governance covers more than setting policies and financial controls because a nonprofit has a purpose or mission beyond just keeping the doors open. The need to support both the mission and the organization’s operations can be daunting. Read More

What Nonprofit Boards Need to Know About Their Fiduciary Duties

What Nonprofit Boards Need to Know About Their Fiduciary Duties

By | Nonprofit

Broadly defined, a fiduciary duty is one owed by an individual in a leadership or management position to the organization itself as well as its members. Although the phrase usually pops up in the context of for-profit companies, it also applies to the religious and nonprofit sectors. Fiduciary obligations are in place whether or not a person is paid for serving on a board. Read More

Final Rule on Nonprofit Donor Disclosure Obligations Issued by IRS

Final Rule on Nonprofit Donor Disclosure Obligations Issued by IRS

By | Nonprofit

The IRS recently issued final regulations on donor disclosure specifications that will exempt some nonprofits — other than 501(c)(3) nonprofits as well as 527 political groups — from being required to report the names and addresses of substantial donors (those giving more than $5,000) on Schedule B of their yearly Form 990 returns. Churches are exempt from the requirement to file a yearly Form 990 return. Read More

The Importance of Waivers and Consents for Churches and Nonprofits

By | Church, Nonprofit

In Arizona, liability waivers are considered to be legally enforceable contracts in which participants in an event or activity assume the risk for potential injury. However, liability waivers only protect organizations from incidents that arise from ordinary negligence; waivers do not protect Arizona nonprofits from gross negligence, which is generally defined as “the lack of any care or an extreme departure from what a reasonably careful person would do in the same situation to prevent harm to oneself or to others.” Read More

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