Legal

Maintaining Legal Compliance

Nonprofit compliance Nonprofit compliance laws are put in place by federal and state authorities to protect the public and ensure nonprofit organizations do not abuse their financial advantages. Because 501(c)(3) organizations are exempt from federal taxes and have access to public funding, they are held to a high standard by the public and by our …

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Nonprofit Ethics

Ethics are moral principles that guide our behavior.  Because exempt organizations are public entities that rely on public trust, it is important for these organizations to commit to ethical principles, transparency, and accountability.  Establishing a code of ethics is proactive way that a board can send a message to the public that it is trust-worthy, …

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Bylaws and Conflict of Interest

Bylaws Bylaws are the most important operating manual that nonprofit organizations have.  They represent an internal set of rules established by the organization to regulate and govern itself. Your Bylaws define: The size of your board and how it will function The roles and duties of directors and officers The rules and procedures for meetings, …

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Required Public Disclosures

Exempt organizations are expected to operate with transparency as it pursues its mission related activities.  In the interest of transparency, the organization must make the following documents available for public inspection either on its website, by way of formal public announcement or upon written request:  Exemption application (Form 1023 and Form 1023-EZ) Determination Letter Three …

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Charitable Registration Requirement

Charitable solicitation refers to the act of asking for something of value. Soliciting can take many forms, such as requesting contributions or donations at fundraising events, through direct mail, by phone, email, radio, and television ads. Initiating online fundraising on your website (via a “Donate” button) or through social media also constitutes charitable solicitation. Another …

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Unrelated Business Income Tax (UBIT)

Understanding “UBIT” As it relates to the 501(c)(3) tax-exempt organizations, the IRS approves tax exemption which allows these organizations the ability to generate non-taxable income, including income that is earned by the organization for delivering products or services in furtherance of its mission. Generally, income that is earned which does not further the mission of …

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Filing the IRS 990 Information Return

IRS Form 990 is an annual information return required to be filed with the IRS by most organizations exempt from income tax under section 501(a), and certain political organizations and nonexempt charitable trusts.  What’s on Form 990? The form contains information about the organization’s operations (including UBIT, valuing in-kind gifts, lobbying, governance and management, related …

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