Last week, we discussed the benefits of trademark registration in “What’s in a Name? Lessons learned from current trademark battles.” Equally important, though, is the discussion about potential reasons not to register a trademark. Choosing to forgo registration is not an invitation to avoid due diligence nor engage in...
STARTING A NONPROFIT
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.
What’s in a Name? Lessons learned from current trademark battles
Nonprofits are not immune to the trademark battles that are more commonly associated with for-profit corporations. Nonprofits, like other corporations, benefit from strong branding and may be just as protective of their trademarks. Last week, Clifford Marks’ article “Charity Brawl, Nonprofits Aren’t So Generous When a Name’s at Stake”...
B Corporation > Nonprofit: Tactical Philanthropy Advisors
One of most well-known and respected bloggers on philanthropy, Sean Stannard-Stockton, launched a new venture on August 31: Tactical Philanthropy Advisors. Sean intends to operate as a B Corporation, but his site shows that he considered the nonprofit form. Here's his explanation of why TPA ultimately chose a for-profit structure: We...
Media Organizations: The Nonprofit Option
On August 28, 2009, at the Seize the Moment conference on ethnic and community news media sponsored by the Renaissance Journalism Center and ZeroDivide, I co-presented a program on "The Nonprofit Option." My co-presenter was Clarisa Morales Roberts, Executive Director of Independent Arts & Media, who provided a passionate operational perspective to the...
Alternatives to Forming a Charitable Nonprofit
Check out the article Emily and I wrote for the American Bar Association's Business Law Today on Alternatives to Forming a Charitable Nonprofit here. It was nice to get a "Hallellujah" from New York Times philanthropy reporter Stephanie Stromm on Twitter. In connection with the Business Law Today issue focusing on...
The NP-Myth
NP-Myth: the fatal assumption that any individual who has a passion about a charitable mission can successfully create and manage a sustainable nonprofit to further that mission. Best-selling author of the E-Myth Revisited, Michael E. Gerber, hypothesizes that the single most disastrous assumption anyone can make about going into...
Selecting the State of Incorporation
Founders of to-be-formed nonprofit corporations may be confused about selecting an appropriate state of incorporation. The general rule of thumb is to incorporate in the state in which the nonprofit will operate. This may substantially reduce the nonprofit’s reporting requirements and associated burdens. If the nonprofit is incorporated elsewhere,...
Conversions Between a For-Profit Corporation and Nonprofit Public Benefit Corporation
California allows a for-profit corporation to convert into a nonprofit public benefit corporation and vice versa provided that certain steps are followed for each respective process. For-profit corporation to Nonprofit corporation Generally, a for-profit corporation can convert to a nonprofit public benefit corporation by amending of its articles of...
Number of Directors – What’s the Best Practice?
My lawyerly reponse to the question of how many directors a nonprofit corporation should have is “it depends.” The Panel on the Nonprofit Sector, in its Final Report to Congress and the Nonprofit Sector (2005), states that “he ideal size of a board depends on many factors, such as...
Amateur Athletic Organizations
To qualify for 501(c)(3) tax exempt status, an amateur athletic organization must fall under one of three rationales endorsed by the IRS: An organization is educational by either teaching sports to youth or being affiliated with an educational organization. Such organizations may also provide facilities and equipment. An organization...