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 …
The decision to establish an endowment may be prompted by the acceptance of a particular gift, a desire to establish a perpetual fund in honor of the organization’s founder, or the need to ensure the organization’s financial sustainability. The principal of an endowment fund – the original gift or gifts that comprise such fund – …
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 …
What is Political Campaign Intervention? Participating in, or intervening in, any political campaign on behalf of, or in opposition to, a candidate for elective public office is called “political campaign intervention.” 501(c)(3) tax-exempt organizations are strictly prohibited from engaging in any political campaign intervention, direct or indirect, including supporting or endorsing a candidate for public …
Most charities incorporated or operating in California must register and file annual reports with the California Attorney General’s Registry of Charitable Trusts. Paid fundraisers soliciting and/or receiving charitable assets in California also must register with and report to the Registry. Newly established charities (and those new to California) must register with the Registry of Charitable …
