California Nonprofit Articles of Incorporation

A California nonprofit corporation is formed by the filing of nonprofit articles of incorporation (Articles). There are three types of California nonprofit corporations: public benefit corporations, mutual benefit corporations, and religious corporations. Because they are governed by different laws, the Articles must reflect the appropriate type. In this post,...

California AG’s Guide for Online Charitable Giving

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...

Rebuttable Presumption of Reasonableness Procedures

The Rebuttable Presumption of Reasonableness procedures, described in Treasury Regulation Section 53.4958-6(a), were promulgated to help charities avoid overpaying certain individuals and entities (known as disqualified persons) that might be able to exercise influence on the charity’s decision-making. Among those included as disqualified persons (DQPs) are: Directors (board members),...

Court Strikes Down Rule Excepting Certain Nonprofits from Donor Disclosures

On July 30, 2019, in Bullock vs. Internal Revenue Service, a federal court held unlawful and set aside Rev. Proc. 2018-38 as adopted by the IRS without complying with applicable notice-and-comment procedures. Rev. Proc. 2018-38 provided that tax-exempt organizations described by section 501(c), other than section 501(c)(3) organizations, will no...