Posts Categorized: Taxes

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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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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Annual Filing Requirements for California Nonprofit Public Benefit Corporations

September 29, 2023 Posted by Casey Summar in Form 990, Nonprofits, Taxes
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nonprofit calculating their annual filing requirements

Introduction A California Nonprofit Public Benefit Corporation is required to file several forms each year to remain in good standing as a nonprofit corporation and maintain 501(c)(3) status. This blog summarizes the main annual filing forms, which forms to file, due dates, and potential ramifications for failure to comply. Why These Forms Are Crucial The …

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Unrelated Business Income- Exclusions and Carve-Outs

August 25, 2023 Posted by Casey Summar in Non-profits, Nonprofits, Taxes, Unrelated Business Income
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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) …

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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
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A nonprofit leader calculating unrelated business income

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 …

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What is the Difference Between a Public Charity and a Private Foundation?

January 11, 2022 Posted by Casey Summar in Charitable Deductions, Nonprofits, Taxes

In the nonprofit sector, the words “charity” and “foundation” often are used interchangeably. However, underlying these terms is a legal concept critical to most 501(c)(3) tax-exempt organizations. Each 501(c)(3) is classified by the IRS as either a “public charity” or a “private foundation.” This classification has significant implications for the organization as it impacts the …

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