On December 22, 2008, the Foundation Coalition, a group of nine California-based foundations, pledged to collectively grant (1) in excess of $20 million – over and above ongoing commitments - to support organizations serving minority-led and other grassroots community-based organizations serving diverse and/or low-income communities; and (2) in excess of $10 million...
Some Predictions for 2009
Here are some of my predictions for 2009: Many nonprofits will disappear. Paul C. Light, Paulette Goddard Professor of Public Service, New York University, predicted that more than 100,000 nonprofit groups nationwide (10%) will fail within the next two years, including a few "big brand-name nonprofits." Professor Light made his...
Bridgespan Group Survey – Tough Times
The Bridgespan Group’s survey of 800 nonprofit leaders regarding the economic downturn explores the current challenge faced by nonprofit organizations: an increased demand for services coupled with declining revenues. Based on over 100 responses from various nonprofit CEOs, Presidents, and Executive Directors from across the country, the Bridgespan Group...
Princeton and Robertson Family Donor-Intent Dispute
Generally, a charitable gift given and received for a particular specified purpose may be used for that purpose and none other. Recently, litigation arose over Princeton University's alleged misuse of an endowment associated with the Robertson Foundation, currently valued at about $900 million. The University-designated trustees of the Foundation, who...
Final 2008 Form 990 Released
The IRS has now finalized the 2008 Form 990 and Form 990-EZ information returns for tax-exempt organizations. As noted in previous posts, the Form 990 has not undergone major revisions in almost 30 years. According to IRS Commissioner Doug Shulman, "he revised form will give the IRS and the...
The Art of the Turnaround
Michael Kaiser's book The Art of the Turnaround: Creating and Maintaining Healthy Arts Organizations lists 10 basic rules to be followed in every turnaround: Someone must lead. The leader must have a plan. You cannot save your way to health. Focus on today and tomorrow, not yesterday. Extend your programming...
Nonprofits and the Zone of Insolvency – Part Two
Earlier this fall, I wrote a post about Ron Mattocks' book: Zone of Insolvency: How Nonprofits Avoid Hidden Liabilities and Build Financial Strength. Here are some questions and answers from the media kit associated with the book: What are three steps on (sic) organization must take immediately upon realizing they've...
ABC’s for Exempt Organizations – from the IRS
The IRS article “ABC’s for Exempt Organizations” features links that a founder or manager of a new organization may find helpful on subjects including: Life Cycle of an Exempt Organization: Helpful information about points of intersection between tax-exempt organizations and the IRS, including access to explanatory information and forms that...
990’s for Real People – Presented by Eve Borenstein
I had the pleasure to attend a day-long Alliance for Justice program last week on the new Form 990 presented by Eve Borenstein, a highly respected exempt organizations attorney who I consider the go-to person on this subject. Here are some of the highlights of the introductory portion of the program:...
IRS Exempt Organizations Division 2009 Work Plan
Improved Service to Achieve Voluntary Compliance Preparing and Helping to File the Form 990 (speeches, workshops, tax forums) Form 990-N (e-Postcard) Guidance (including proposed regulations on (i) new requirements for supporting organizations, and (ii) excise taxes on donor advised funds; and final regulations on excise taxes on prohibited tax shelter...