Posts Categorized: Accountability

Annual Filing Requirements for a Foreign Nonprofit Operating in California

March 29, 2024 Posted by Casey Summar in Accountability, Board, Form 990, IRS, Non-profits, Nonprofits, Taxes
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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 Accountability, Board, Director Duties
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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 Accountability, Attorney General, Form 990, Non-profits, Nonprofits, Policy, Taxes
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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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Beware the Attorney General: Scrutiny of Director Compensation on the Rise

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Enhanced scrutiny for nonprofit compensation

Recent California Attorney General (“AG”) audits should make every nonprofit board beware the Attorney General. This charity regulator appears to be doubling down on its scrutiny of director compensation. Under the California Nonprofit Corporation Law (the “Nonprofit Law”), the AG has the authority  to look into virtually every aspect of a charity’s operations. This broad …

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Are Nonprofits "Follow the Money" Obsessed?

Have the leaders of nonprofits been overly incentivized to “follow the money,” resulting in a troubling shift in the composition of boards? The answer is yes according to a recent article in the Stanford Social Innovation Review. The trend may be “distort[ing] organization priorities” and may “dilute charitable values.” According to the author, Garry W. …

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Does Your Nonprofit Pay Its Payroll Taxes?

August 20, 2014 Posted by Jessica Shofler in Accountability, IRS, News, Nonprofits, Taxes

According to a recently released report from the Treasury Inspector General for Tax Administration (TIGTA), although most exempt organizations pay their federal taxes, more than 64,200 of the nearly 1.7 million organizations recognized as exempt (or 3.8%) had nearly $875 million of federal tax debt as of June, 2012. This included payroll taxes, unrelated business …

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