Introduction Nonprofit organizations today face a growing array of risks that threaten their ability to fulfill their missions. From cyber threats to regulatory changes and financial uncertainties, the challenges are numerous and increasingly complex. As these risks continue to emerge, taking steps to affirmatively protect nonprofit assets has become more critical than ever. In this …
In the realm of nonprofit organizations, maintaining thorough and accurate records is not only a best practice but often a legal requirement. Among these essential records is the minute book, a vital repository of organizational history and decisions. This blog post will explore the importance of minute books for nonprofits, what they should contain, the …
In California, every domestic nonprofit corporation must file a Statement of Information (the “Statement”) within 90 days of incorporation and every two years thereafter. Nonprofit corporations formed outside of California but that operate in the state must file a Statement of Information within 90 days of initial registration in California and every year thereafter. If …
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 …
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) …
Nonprofit organizations may find themselves engaging in mergers or other business combinations in the same way as for-profit businesses. The reasons vary, including advancing strategic alliances, efficiency of operations, expanding services, and protecting assets. Whereas a merger traditionally is thought of a marriage of two or more entities, the merger may take many forms including …
