The California Attorney General’s Publication CT–603 (12/06) – "General Guide for Dissolving A California Nonprofit Corporation" – outlines the basic process required by a California nonprofit corporation after its board of directors or its membership votes to cease operations but before any remaining assets are distributed: A vote by board of directors or majority of […]
Author: Emily Chan
Dissolution
The well-known saying, “Honesty is the best policy,” rings especially true for nonprofit organizations and the topic of dissolution. Although a tough decision and perhaps one that many will want to avoid, it is important for organizations to (a) acknowledge in a candid and timely manner when they’ve reach the point where continued operation is […]
Mergers and Due Diligence
While the idea of a merger can seem like a promising avenue for increased efficiency, increased fundraising, and the like, merging is a multi-step process with important legal implications. As Jerald A. Jacobs explains in his article, "All About Mergers of Nonprofit Organizations," every organization should consider the mechanics and the consequences thereof before formally […]
Donor Advised Funds – An Uncertain Future
Donor advised funds enable people to claim a charitable tax deduction on donated cash, stock, and other assets to these special accounts offered primarily by financial companies and community foundations while also allowing them to recommend how, when, and to which charities their money should be distributed. Donor advised funds have been growing faster than […]
IRS Eliminates Advance Rulings Process
On September 8, 2008, the IRS issued new regulations that eliminate the public charity advance ruling process. IR-2008-102, “IRS Streamlines Application Process for New Tax-Exempt Organizations,” stated in part: The Internal Revenue Service and the Treasury Department today issued new regulations that do away with the so-called advance rulings that granted public charity status for […]
Foundations Supporting Advocacy
Private foundations are subject to strong prohibitions on “direct” and “grassroots” lobbying, generally meaning any direct contact with a member of a legislative body regarding specific legislation and encouragement by the foundation to have individuals contact legislators to convey a position on specific legislation, respectively. However, as the Donor Forums of Chicago discusses in “How […]
Microphilanthropy
Microphilanthropy is a term that is being used more and more frequently. As one of the “top ten philanthropy buzzwords of 2007”, perhaps more attention needs to be paid to this emerging practice. The concept is similar to the notion behind the Grameen Bank. However, where microfinance talks of making micro-loans, microphilanthropy talks of making […]
Growing Nonprofits Consider Increased Government Involvement
As the role of nonprofits in America grows, many of the organizations are lobbying for increased, revamped federal support. In its current form, the government offers no specialized agency catering to the interests of nonprofit organizations. Now, some nonprofit leaders like Steve Gunderson of the Council on Foundations and Diana Aviv of Independent Sector are […]
Mergers
Some nonprofit organizations facing financial troubles or wishing to enhance the effects of their efforts may find their solution in a merger. According to the New York Times (November 11, 2007), the merging of the Hands on Network and Points of Light Foundation resulted in a combined budget of over $30 million and 370 affiliates […]
Charity Lobbying – Report from the John Hopkins Nonprofit Listening Post Project
A recent report from the John Hopkins Nonprofit Listening Post Project, authored by Lester M. Salamon and Stephanie Lessans Geller, shows that charities are not lobbying as much as they perhaps should: the vast majority of charities spent less than 2 percent of their budgets on either lobbying or advocacy activities. In 2007, the Project […]