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Ensuring Effective Governance in Nonprofits: The Importance of Good Bylaws and Written Policies

April 29, 2024 Posted by Casey Summar in Non-profits, Nonprofits, organization, Policy
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nonprofit members applauding good governance policies

Effective governance is essential for the sustainability and legal compliance of nonprofit organizations. At the Law Firm for Non-Profits, we believe it is important for a nonprofit board of directors to adopt and follow suitable written policies and procedures. Such documents are vital to steering the nonprofit organization on the correct path and ensuring awareness of and adherence to the laws that regulate them. The Foundation of Good Governance: Clear and Comprehensive Bylaws Good governance …

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Annual Filing Requirements for a Foreign Nonprofit Operating in California

March 29, 2024 Posted by Casey Summar in Uncategorized
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working on filing requirements for a foreign nonprofit operating in california

Introduction Nonprofit corporations formed outside of California may be required to file several forms to allow them to legally operate within the state of California. This blog summarizes filing requirements, due dates, and potential ramifications for failure to comply with filing requirements for California “foreign” or “out-of-state” nonprofit corporations. What is a “Foreign Corporation”? “Foreign corporation” is a term that describes a corporation that operates in a state outside …

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Fiduciary Duties of Nonprofit Directors

February 29, 2024 Posted by Casey Summar in Uncategorized
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glasses with the words fiduciary duty in the lense on a piece of paper

The board members of a nonprofit are legally responsible for overseeing everything the nonprofit does. California state law strictly controls how a board manages its affairs and sets high standards for board members’ conduct. Failure to satisfy these legal standards – i.e., the board members’ “fiduciary duties” – can result in personal liability for directors …

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Disclosure Requirements for Nonprofits

January 31, 2024 Posted by Casey Summar in Uncategorized
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a typewriter wither the word disclosure written on the paper.

The IRS and some states require nonprofits to disclose certain documents to the public upon request. Additionally, the IRS and some states even make these documents available to the public. Donors want to be able to ensure that the nonprofits they donate to are spending their contributions wisely. Maintaining transparency – which nonprofits accomplish in …

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How to Handle Conflict of Interest Transactions Within a Nonprofit

January 4, 2024 Posted by Casey Summar in Conflict of Interest, Non-profits, Nonprofits
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clipboard with the words "Conflict of Interest Policy" on it.

It is a best practice for nonprofits to have a conflict of interest policy to guide them on how to approach conflict of interest transactions. Such a policy will help ensure that, when actual or potential conflicts of interest arise in connection with a proposed transaction, the nonprofit has a process in place under which the relevant individual(s) will advise the governing body about all the pertinent facts concerning …

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Charitable Solicitations: What to Know About Fundraising Registrations and Permits as a Nonprofit

December 4, 2023 Posted by Casey Summar in Fundraising, Nonprofits
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Man from nonprofit standing at a door step conducting charitable solicitations

Most states and even some localities require nonprofits to register or obtain permits for the privilege of asking their residents for donations. This type of fundraising activity is called “charitable solicitations” and is heavily regulated to prevent fraud and harassment of the public.  While it varies by state, county, and city, any activity that invites someone to …

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