Here are some selected highlights from NEO Law Group over the past year that we hope you’ll find helpful. 2014 was also highlighted by an addition to Erin’s family and Michele’s graduation and passage of the bar exam! Amazing year for all of us. Blog Posts Governance What Issues Should a...
CALIFORNIA LAW
Proposed Rules Affecting California Charities – Comment Period Ends Today!
Unless the Department of Justice receives persuasive feedback today by 5 p.m., California charities that are required to register with the Attorney General’s Registry of Charitable Trusts (most charities except religious organizations, hospitals, and schools) may be subject to the following regulations and penalties: $100 penalty per day per...
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...
California Bill to Strengthen Enforcement of Charity Registration and Reporting
On May 27, 2014, Assembly Bill No. 2077 (AB 2077), introduced by Assemblyman Travis Allen, was unanimously passed on the Assembly Floor. AB 2077 provides that moneys in the Registry of Charitable Trusts Fund, upon appropriation by the Legislature, shall be used by the Attorney General to enforce the registration...
5 Things Nonprofits Should Know About Ballot Measure Advocacy in California
Ballot measure advocacy can be an important and powerful way to advance an organization’s mission and purpose. Last week, the Alliance for Justice hosted a Webinar to discuss the ways in which a 501(c)(3) organization may engage in ballot measure advocacy. Here is a list of 5 things...
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...
California Youth Equality Act Aimed at Boy Scouts of America
Nonprofit organizations may obtain recognition of federal tax exemption under Section 501(c)(3) of the Internal Revenue Code. In California, the corresponding provision for state tax exemption is Section 23701d of the Revenue and Taxation Code. Section 23701d is very similar to Section 501(c)(3) and states the...
Can We Have a Nonvoting Director?
No. All directors have a right to vote on each matter presented to the board of directors for action.* * applicable to California nonprofit corporations. See Cal. Corp. Code Secs. 5211(c), 7211(c), 9211(c). Q: What about directors who have a conflict of interest in a...
FTB 199N: Annual Electronic Filing Requirement for Small Tax-Exempt Organizations
For accounting periods starting on or after January 1, 2010, small California tax-exempt organizations are required to file an annual return with the Franchise Tax Board (FTB) by the 15th day of the 5th month after the close of the organization's tax year. Currently, tax-exempt organizations with annual gross...
New California Law Affecting Fiscal Sponsors
California nonprofits serving as fiscal sponsors (and potentially any California nonprofits with negative unrestricted net assets) must be aware of the new law that may require them to maintain directors’ and officers’ liability insurance and disclose annually to the Attorney General how they comply with their charitable trust responsibilities....