Posts Categorized: Non-profits

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
Tags:

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 …

READ MORE »

How to Handle Conflict of Interest Transactions Within a Nonprofit

January 4, 2024 Posted by Casey Summar in Conflict of Interest, Non-profits, Nonprofits
Tags:

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 …

READ MORE »

Charitable Donations and Nonprofits

November 6, 2023 Posted by Casey Summar in Charitable Deductions, Donations, Non-profits, Nonprofits
Tags:

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 …

READ MORE »

Unrelated Business Income- Exclusions and Carve-Outs

August 25, 2023 Posted by Casey Summar in Non-profits, Nonprofits, organization, Taxes, Unrelated Business Income
Tags:

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) …

READ MORE »

How Does “Unrelated Business Taxable Income” Relate to Nonprofits?

July 31, 2023 Posted by Casey Summar in Form 990, Non-profits, Nonprofits, Taxes, Unrelated Business Income
Tags:

What is unrelated business taxable income (UBTI)? Although tax-exempt organizations (referred to herein as a “nonprofit”) are generally exempt from federal income tax, they may have to pay income tax on net income derived from business activity that is unrelated to their tax-exempt purpose, called “unrelated business taxable income” (UBTI). This type of tax is …

READ MORE »

Political Campaign Intervention

June 30, 2023 Posted by Casey Summar in Fundraising, Lobbying, Non-profits, Nonprofits
Tags:

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 …

READ MORE »