I will be speaking this week for The Nonprofit Centers Network on unrelated business income tax (“UBIT”) related issues faced by nonprofits providing shared space with other individuals or entities (you can register for the webinar here). As we’ve discussed in previous posts on UBIT, generally, net income from unrelated business activities will be […]
Author: Erin Bradrick
Nonprofit Laws for Human Resources Managers to Be Aware Of
It may not be the responsibility of an HR manager in the nonprofit sector to be aware of all of the laws that apply to nonprofits. However, there are some laws that have impact specifically on matters within the purview of the HR department that are worth being aware of. Here, we will briefly discuss […]
UBIT: Advertisements vs. Qualified Sponsorship Payments
Generally, net income from unrelated business activities will be subject to the unrelated business income tax (”UBIT”) if the activity constitutes (1) a trade or business, (2) that is regularly carried on, and (3) is not substantially related to the furtherance of the organization’s exempt purpose. The IRS considers soliciting, selling, and publishing commercial advertising […]
NEO Law Group’s Video on Tips for Starting a Nonprofit – Drafting a Purpose Statement
NEO Law Group recently posted its second YouTube video on 2 minute tips for starting a nonprofit. This video focuses on the process of drafting a purpose statement for a new nonprofit organization We hope that you enjoy it and please stay tuned for additional 2 minute videos from NEO Law Group on tips related […]
NEO Law Group’s Video on Tips for Starting a Nonprofit – Selecting the Initial Board of Directors
NEO Law Group posted its first YouTube video today on 2 minute tips for starting a nonprofit, beginning with a discussion of selecting the initial board of directors. We hope that you enjoy it and please stay tuned for additional 2 minute videos on tips related to nonprofits.
The Finance Committee: What is it and What Does it Do?
A board of a nonprofit is generally empowered to create committees at its discretion, subject to the organization’s bylaws and the laws of the state of its incorporation. For each committee it creates, the board should determine the level of authority to be given to the committee and how it will maintain appropriate oversight […]
FTB Revocation Policy for Failure to File Statement of Information or Form RRF-1
At a meeting of the California Bar Association’s Tax Exempt Organizations Committee last Friday, the issue of the California Franchise Tax Board (“FTB”) revoking an organization’s state tax-exempt status for failure to timely file a Statement of Information with the California Secretary of State was raised. Several representatives of the FTB present at the meeting […]
Unrelated Business Taxable Income – What Doesn’t Count?
Revenues created by business ventures of nonprofits can result in unrelated business taxable income (“UBTI”) subject to the unrelated business income tax (“UBIT”), but it’s important to understand that not all revenues generated by unrelated businesses are subject to UBIT. And to be clear, if you have no UBTI, you owe no UBIT. We have […]
Unrelated Business Income and the Commerciality Doctrine
As is clearly determined (and as we’ve discussed several times on the Nonprofit Law Blog), in order to establish and maintain tax exemption under Section 501(c)(3), an organization must be primarily operated for an exempt purpose. What is less clearly determined, however, is when a 501(c)(3)’s tax exempt status may be at jeopardy by operation […]
Private Benefit Doctrine – A Few Examples
The private benefit doctrine is the broadest of the private benefit rules that apply to 501(c)(3) organizations. It generally provides that a 501(c)(3) organization may not confer any benefit, monetary or otherwise, on any individual or entity that is not incidental, quantitatively and qualitatively, to furthering the organization’s exempt purposes. The concern behind the doctrine […]
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