Disclosure Requirements for Nonprofits

January 31, 2024 Posted by Casey Summar in Uncategorized
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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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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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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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Charitable Donations and Nonprofits

November 6, 2023 Posted by Casey Summar in Charitable Deductions, Donations, Non-profits, Nonprofits
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Any organization that has received an IRS determination letter recognizing it as a 501(c)(3) organization may offer donors a tax deduction for their donations. However, for your donors to receive a tax deduction, your nonprofit must properly acknowledge charitable contributions it receives by following the requirements described below. What is a Donation Acknowledgment? As summarized …

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Annual Filing Requirements for California Nonprofit Public Benefit Corporations

September 29, 2023 Posted by Casey Summar in Form 990, Nonprofits, Taxes
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Introduction A California Nonprofit Public Benefit Corporation is required to file several forms each year to remain in good standing as a nonprofit corporation and maintain 501(c)(3) status. This blog summarizes the main annual filing forms, which forms to file, due dates, and potential ramifications for failure to comply. Why These Forms Are Crucial The …

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Unrelated Business Income- Exclusions and Carve-Outs

August 25, 2023 Posted by Casey Summar in Non-profits, Nonprofits, organization, Taxes, Unrelated Business Income
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Review of Unrelated Business Taxable Income While 501(c)(3) organizations are generally recognized as tax-exempt, they may have to pay tax on income derived from certain revenue-generating activities (as opposed to income from donations) known as unrelated business taxable income (UBTI). Income may be considered UBTI if it (1) is from a trade or business, (2) …

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