Nonprofits that receive federal grant money are subject to certain restrictions and regulations that other nonprofits are not. For example, federal grant recipients commonly have to undergo specialized audits that confirm government money is being used appropriately. Further, federal grant recipients must not engage in religious activity that would violate the constitutional separate of church …
Posts Categorized: Accountability
Do You Dislike Charity Ratings?
Since the advent of Charity Navigator and other websites that rate charities, there has been an increasing push for charities to meet their arbitrary standards. Voices critical of charity ratings rarely reach a national audience. But now a prominent critic has reached a national forum thanks to The Huffington Post. In a recent editorial, Founder …
Charity and its Former Leader Face Punishment for OFAC Violation
We warned you to check with the Treasury Department before making grants to foreign organizations, so as not to violate the Office of Foreign Assets Control (“OFAC”). Here is an example of why nonprofits need to know those rules. Recently, Mehrdad Yasrebi, a former leader of the Child Foundation was found guilty of illegally funneling …
OFAC Violations, You Can Go to Jail this Time
Remember when we said you won’t go to jail for violating the California Attorney General’s rules on charitable solicitation? Well, you can go to jail for violating the Office of Foreign Assets Control (“OFAC”). OFAC administers economic sanctions against certain foreign countries, terrorists, international narcotics traffickers and persons or entities involved with weapons of mass …
Monitoring Your Fiscal Sponsor
Fiscally sponsored programs should vet and monitor their fiscal sponsors.
AG Proposes Changes to Penalties
Ever wonder what will happen if you don’t comply with the California Attorney General‘s rules on charitable solicitation? Stay up at night wondering whether you’re going to be carted off to jail for failing to register? Hopefully you didn’t spend too much time getting to know the current rules, because the AG is thinking about …