By NEO Law Group
Although the vast majority of individuals who set out to start a nonprofit do so with the best of intentions, starting a nonprofit requires much more than just good intentions.
Founders should invest meaningful time and thought in determining whether they can access the human, financial and other resources necessary to create a sustainable organization that will effectively and efficiently bring value to the public. And they should understand the various considerations and issues involved with starting and operating a nonprofit. For a Step-by-Step Guide for Starting a California Nonprofit, check out our article for CalNonprofits here.
501(c)(3) organizations have numerous tools at their disposal for achieving their charitable purposes, and also have the distinct advantage of being able to receive contributions that are generally tax-deductible for donors. However, in exchange for tax-exemption and the ability to receive deductible charitable contributions, the law places some limitations...
An environmental purpose is not one of the seven exempt purposes specified in Section 501(c)(3) of the Internal Revenue Code (the “Code”). However, many environmental organizations qualify for exemption under 501(c)(3) because their activities further charitable, educational, and/or scientific purposes. Although there is no explicit mention of environmental purposes...
Erin is presenting a live webinar titled, Complexities of Starting a Nonprofit in California, for Lorman on October 13 at 10:00 a.m. – 11:30 a.m. PST. Here is the description of the program: This topic will cover the process of forming a California nonprofit entity, going through the legal considerations involved in each step...
Most new charitable nonprofits other than churches will seek 501(c)(3) recognition from the IRS. Since July 2014, qualifying nonprofits have been able to apply for recognition of 501(c)(3) tax-exempt status using either Form 1023 or the much simpler Form 1023-EZ. While Form 1023-EZ has since become the more popular application form,...
You’ve got an idea for making the world a better place, and you want to start a 501(c)(4) nonprofit social welfare organization as the means to do so. In contrast to a 501(c)(3) charitable organization, a 501(c)(4) organization may engage in unlimited lobbying in furtherance of its social welfare...
Erin is presenting Nonprofit 101: Forming a Nonprofit & Applying for Tax Exemption Under IRS Code Section 501 (c)(3) for MyLawCLE in Miami on August 20, 2015. You can attend the live broadcast or on-demand. Here’s the description from MyLawCLE: In this Level 101 session, we’ll be discussing the basic...
In Avengers: Age of Ultron, Captain America made reference to bylaws in stating that there were no restrictions against relationships between members. This of course proves that The Avengers are not only a superhero team that saves the world on a regular basis but also a nonprofit corporation. Here is the...
A 501(c)(3) organization is presumed to be a private foundation unless it qualifies as a public charity. Part I of this post discussed how an organization can qualify as a public charity under one of two 509(a)(1) tests, either the one-third support test or the facts and circumstances test....
A 501(c)(3) organization is presumed to be a private foundation unless it qualifies as a public charity. As discussed in a previous post and on our short YouTube clip, public charity classification is generally far more advantageous due to the burdensome rules and restrictions applicable to private foundations. Most 501(c)(3) organizations...
Yesterday, NEO Law Group released a new short video in its series of videos on tips for nonprofits, available on YouTube. This video focuses on the differences between private foundations and public charities. We hope that you enjoy it and please stay tuned for additional videos from NEO Law Group on tips for nonprofits.