The Proper Way to Thank Donors
IRS Publication 1771 says that for any gift over $250, the giver must have written documentation of the gift. That written documentation, according to the Tax Court, must comply with the requirements outlined in Pub 1771: It must include the name of the organization and the amount of the donation. If the gift is non-cash, it […]
IRS Explains How to Reinstate Automatically Revoked Exempt Status
Charity Channel | Don Kramer | May 16, 2014 “The IRS has issued a new Revenue Procedure (2014-11) outlining four ways for tax-exempt organizations that have lost their exempt status for failing to file required tax returns for three consecutive years to regain their exempt status, with possible retroactive reinstatement. The procedures differ based on […]
UBIT: Advertisements vs. Qualified Sponsorship Payments
Unrelated Business Income Tax or UBIT can be a confusing topic. Here’s an article from the Nonprofit Law Blog that helps clarify the distinction between advertisements that trigger UBIT and qualified sponsorship payments that don’t. Click here to read the article.
Fundraising Compliance Guide
States oversee solicitation of their citizens. Before your nonprofit seeks donations, it must register in each state where it will be fundraising. Failing to do so can results in fines and other penalties. 44 states and the District of Columbia have charitable solicitation laws. Remember that solicitation occurs when you ask for a contribution (by […]
California nonprofit status verification letter
Do you need to verify that you are a California tax-exempt organization? Using either your organization’s name or it’s state ID number, you can now generate an automatic letter from the California Franchise Tax Board. The “Entity Status Letter” states that you are exempt from state taxes and in good standing with the Franchise Tax […]
Charitable Solicitation Registration
Your nonprofit may be aware of its obligation to register for fundraising purposes in its own state (38 states and the District of Columbia currently have this requirement), but did you know that if your nonprofit is asking for donations from potential donors in other states the nonprofit may be required to register in those […]
Anatomy of a Fundraiser
Fundraising is a crucial part of sustaining a nonprofit organization, but the process of raising money raises myriad legal issues which, if unaddressed, can subject a nonprofit to legal liability and impact an organization’s tax exemption as well as donors’ ability to get the benefit of a tax deduction. Anatomy of a Fundraiser addresses various legal […]
California Attorney General’s Guide for Charities
The Attorney General’s Guide for Charities is intended to help volunteers and others who serve as directors, officers or fundraisers for nonprofit charitable organizations. It provides practical information and answers to questions frequently asked about charities. In addition, the Guide summarizes some of the more important California laws affecting the creation and operation of nonprofit charitable corporations. […]
Nonprofit Compliance Checklist
Have you ever wished for a better way to keep track of your nonprofit’s compliance responsibilities every year? You’re not alone. That’s why CalNonprofits has compiled this handy comprehensive checklist to help nonprofit 501(c)(3) organizations — charities — keep up-to-date with annual filing requirements. All in one place, with links to the resources you need if […]
Who Regulates Charitable Nonprofits?
Many people assume that the IRS has primary jurisdiction over tax-exempt charitable nonprofits. Yet state governments play a much more active role in regulating nonprofits on almost everything, from their creation to dissolution and multiple life-cycle events in between. State laws govern a wide variety of activities, such as how a nonprofit changes its name, amends its […]
