By NEO Law Group
While it may seem intuitive for a 501(c)(3) nonprofit to openly accept gifts without question, certain gifts can result in consequences that harm the nonprofit’s mission, drain its finances, and/or damage the nonprofit’s reputation. In order to avoid such consequences, it’s best practice for nonprofits to adopt a Gift Acceptance...
The Supreme Court of the United States ruled on July 1 that California could not mandate the disclosure of major donors by charities to the State even though such disclosure is already required to be made to the Internal Revenue Service (IRS). The 6-3 decision in Americans for Prosperity...
After a domestic nonprofit takes the first exciting steps of incorporating and filing its Application for Recognition for Exemption (Form 1023) with the IRS, it may be surprised to find out that it may take the IRS 6 months, or even much longer, to grant the nonprofit its official...
The 24th Annual Western Conference on Tax-Exempt Organizations (WCTEO), my #1 go-to conference every year for the past 15 years, will be held virtually on Thursday, December 3, and Friday, December 4. The conference will be focused on the unique issues of these times and, in light of Zoom...
The National Association of State Charity Officials (NASCO) recently published the Survey of State Laws Governing Registration of Charities as of May 15, 2020. We hope this survey will assist charities and their advisors in navigating state registration requirements. This version of the survey includes information regarding relief certain states have...
The Association of Fundraising Professionals (AFP) released some of its findings from an online survey of its members earlier this year focused on professional ethical issues. Frequency of addressing ethical challenges or dilemmas: 50% reported once per year 23% reported never 17% reported roughly six times per year 8%...
The Charitable Trusts Section of the California Department of Justice published the Attorney General’s Guide for Online Charitable Giving in July 2019. The Guide consists of four sections: Introduction: How and Where Can You Give to Support Charities Online? Research Before Donating Duties and Best Practices for Charitable Fundraising...
California Assembly Bill 1539 (AB 1539), introduced by Assembly Member Jacqui Irwin (D) on February 22, 2019, provides for new laws governing crowdfunding without actually referencing crowdfunding as a defined term. It is the successor to Irwin’s earlier bill, AB 2556, which defined the terms charitable crowdfunding solicitation and...
We seem to be hearing more and more about cryptocurrency. Is it the money of the future? Is it a passing trend? And what do nonprofits need to know about cryptocurrency, the underlying blockchain technology, and the existing regulation? What is Cryptocurrency? There are four critical definitions required for...
Nonprofits are subject to laws with which they must comply or face the possibility of legal penalties. But they are also subject to ethical expectations from their key stakeholders. Certainly, many ethical standards are codified in the law. For example, compensating an executive of a charity an excessive amount...