Compensation for nonprofit executives, especially CEOs, is one of the most scrutinized aspects of nonprofit governance. While nonprofit organizations are mission-driven and tax-exempt, they still operate in a competitive market for leadership talent. The IRS allows nonprofits to pay reasonable compensation for services rendered, but the line between “reasonable” and “excessive” can be narrow. For …
Private foundations are often established with the intention of existing in perpetuity, distributing annual grants to support charitable causes. Yet in recent years, many foundations have chosen to take a different path, “sunsetting,” also known as “spending down.” Instead of preserving assets indefinitely, sunsetting foundations commit to distributing all of their assets within a defined …
Nonprofit fundraising serves as a vital lifeline for organizations dedicated to public good, but it must be approached with careful attention to legal compliance and ethical standards. In California, charitable solicitation is heavily regulated to protect both donors and the integrity of the nonprofit sector. Leaders and fundraisers must understand the legal framework they operate …
For many churches, the question of whether to formally seek 501(c)(3) status with the IRS is a pivotal one. While churches are automatically considered tax-exempt under section 501(c)(3) and are not required to obtain IRS recognition of exemption, some choose to apply anyway, seeking added legitimacy or access to certain benefits. However, obtaining an IRS …
Since January 20, 2025, President Trump has issued over 150 Executive Orders (EOs). This post seeks to provide an understanding of EOs generally, resources to monitor the EOs that are most relevant to nonprofits, and recommendations for what actions nonprofits should be taking in response. What Is an Executive Order? First, let’s level set: What …
Legal Considerations, Alternatives, and Strategic Reflection When a nonprofit begins to consider merging with or acquiring another organization, the conversation is never just legal or operational—it’s personal, purposeful, and often emotional. Unlike in the for-profit sector, a merger or acquisition in the nonprofit world is not about maximizing shareholder value; it is about aligning resources, …
