The term "cy pres" originates from old Norman French meaning "as near as possible". The cy pres doctrine found its legal roots in charitable trusts: if a donor's trust document contains an impossible, impracticable, or illegal objective, courts are given the power to amend the trust, keeping as close...
CALIFORNIA LAW
California Property Tax Welfare Exemption
In March 2008, the California State Board of Equalization published Publication 149 – Property Tax Welfare Exemption. Here is an excerpt from the Introduction: The California Legislature has the authority to exempt property (1) used exclusively for religious, hospital, or charitable purposes, and (2) owned or held in trust...
Form CT-1 is Back!
California Form CT-1 has returned after being replaced by an Initial Checklist which followed passage of the Nonprofit Integrity Act of 2004. If your organization must register with the California Attorney General’s Registry of Charitable Trusts, Form CT-1 is the initial registration form. Click here for Form CT-1. Here...
California Form 3500A – Affirmation of IRC Section 501(c)(3)
California Assembly Bill 897, which becomes effective tomorrow, January 1, 2008, allows an organization with 501(c)(3) tax-exempt status to request California affirmation of tax exemption by sending the Franchise Tax Board a copy of its IRS determination letter. An organization may request California affirmation of federal exemption by filing...
AB 897 Signed by Governor – Simplifies State Tax-Exemption Process
On September 26, 2007, Governor Schwarzenegger signed AB 897 introduced by Assembly Member Guy Houston (R-San Ramon). AB 897 eliminates the requirement of an organization that has received recognition of exempt status under Section 501(c)(3) of the Internal Revenue Code to file a separate application for state tax exemption...
Welfare and Veterans’ Organization Exemptions from Property Taxes – California Nonprofit Law
In general, the Welfare and Veterans’ Organization Exemptions from local property taxes are available to property of organizations formed and operated exclusively for qualifying purposes (religious, scientific, hospital or charitable), which use such property exclusively for those purposes. The Board of Equalization ("BOE") and county assessors jointly administer the...
Paper on the Nonprofit Integrity Act of 2004
Attached is a paper I wrote on the Nonprofit Integrity Act for a Lorman Education Services continuing education seminar earlier this year. This may be a little more detailed than some other materials you may find on the web. Hope you find it useful. Download the_nonprofit_integrity_act_of_2004_v.3.pdf
Registration with the California Registry of Charitable Trusts
The Initial Checklist should be used by charities and other public benefit corporations that must register with the Attorney General’s Registry of Charitable Trusts before engaging in charitable solicitation in California. The Initial Checklist requires among other things a copy of the organization’s articles of incorporation (assuming it is...
Form 3500 – California Exemption Application
Form 3500 (2005) * Application Fee: $25.00 Forms & Instructions 3500 – 2005 Exemption Application Booklet Exempt Organizations – FTB Publication 927 Although most California laws dealing with tax exemption are patterned after the Internal Revenue Code, obtaining state tax exemption is a separate process from obtaining federal exemption. ...
Charitable Trust Doctrine
The charitable trust doctrine requires that a gift accepted by a charitable organization must only be used for the expressly declared charitable purposes of the donee corporation at the time of the acceptance, even if the corporation changes its purpose, transfers those assets or dissolves. Such restriction is imposed...