Nonprofit Crowdfunding Risks

The popularity of nonprofit crowdfunding is undeniable. Last year alone, it is estimated that $5 billion was raised through global crowdfunding with about 30 percent of that total going to social causes. While that figure pales in comparison to the approximately $300 billion raised by charities in the US over the same time period, the […]

Crowdfunding Platforms & Commercial Fundraisers

What keeps certain crowdfunding platforms like Indiegogo from falling within the commercial fundraiser regulations? Crowdfunding for charities is not a new concept, but the use of third-party crowdfunding platforms, such as Indiegogo and GoFundMe have become extremely popular in the past few years. These crowdfunding platforms not only provide a venue to host charitable campaigns, […]

California Bill Regarding Nonprofit Dissolutions

On May 27, 2014, California Assembly Bill No. 1529 (AB 1529), introduced by Assemblyman John Perez, was passed on the Assembly Floor. The goal of AB 1529 is to streamline the process for dissolving nonprofit corporations by creating two new dissolution processes. First, it establishes an administrative process that would allow the Franchise Tax Board (FTB) […]

Nonprofit Advocacy is More Than Lobbying

Advocacy is a powerful tool underutilized by public charities to advance their mission. And although the terms advocacy and lobbying are often used interchangeably, as lobbying is a form of advocacy, there are federal law limitations related to lobbying activities that do not extend to non-lobbying advocacy activities. Lobbying is defined as activities that attempt […]

California Benefit Corporations

What is a benefit corporation? A benefit corporation is a new corporate form allowing for-profit entities to pursue social and environmental goals along with the traditional objective of maximizing profits. The benefit corporation movement grew out of the business community – where social entrepreneurs felt that the traditional corporate forms did not allow them to […]

Benefit Corporations – A Move Away From Capitalism?

  Last month, North Carolina’s legislature rejected a benefit corporation bill, asserting that it would be a “move away from capitalism.” This reasoning seems misplaced. If our own history tells us anything about capitalism, it’s that its form is both dynamic and changing. The Oxford Dictionary defines capitalism as “an economic and political system in […]

Socially Responsible Businesses Get a Boost from Local Governments

  In the past year, San Francisco and Philadelphia have taken an exciting lead in encouraging socially responsible businesses by offering them financial incentives. In April 2012, San Francisco passed an ordinance granting California Benefit Corporations a bidding preference on city contracts. During each stage of the proposal selection process the “Benefit Corporation Discount” provides […]