By NEO Law Group
The social purpose corporation is one of two “hybrid” corporate forms in California that provide alternative business entity options to entrepreneurs who want to combine profitability with broader social and environmental objectives (the other is the benefit corporation). Formerly known as the flexible purpose corporation, the social purpose corporation requires directors to consider socially responsible […]
The National Network of Fiscal Sponsors held its Annual Gathering in Brooklyn on November 7. Approximately 100 leaders of fiscal sponsors from across the country came to learn about common issues, best practices, and new developments, and to share experiences. Fiscal sponsorship refers to a contractual relationship that allows a person, group, or taxable entity to […]
The IRS Tax Exempt and Government Entities (TE/GE) division recently issued its priorities list for 2016. Here is a list of the five strategic areas of focus for exempt organizations for the upcoming year: Exemption: Issues include non-exempt purpose activity and private inurement, enforced primarily through field examination; See Exempt Purposes – Internal Revenue Code […]
The past week was highlighted by the Social Good Summit and Clinton Global Initiative. Have a listen to Ben Harper‘s With My Own Two Hands while perusing our curated nonprofit tweets of the week: Philanthropy: Nonprofits must adapt or end up in ‘ash heap,’ Diana Aviv says http://bit.ly/1O8eglh [Ed. Many thanks to Diana, who led Independent Sector […]
Determining the appropriate amount of compensation to pay an executive is one of the most important decisions a board is asked to make. Board members must balance budgetary concerns with the need to find a qualified candidate. Traditionally, it was not uncommon for nonprofits to expect executives to work for significantly less than they might […]
Private foundations in the United States are often interested in funding promising organizations and projects that are based outside of the country. When doing so, these foundations are required to follow certain rules and procedures promulgated by the IRS to help ensure that the foreign grantees are properly using those funds for charitable purposes. Currently, […]
Prompted by a conversation among nonprofit leaders about the public’s and media’s general lack of knowledge about nonprofits, this article targeted at journalists briefly discusses some basics of federal tax laws applicable to 501(c)(3) organizations and common state corporate and charitable trust laws applicable to nonprofits. Internal Revenue Code Section 501(c)(3) Exempt Purposes A 501(c)(3) organization […]
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 way the startup process must have […]
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 qualify as public charities under Section […]
If your for-profit company is interested in starting a related nonprofit, here are 7 initial considerations to take into account before moving forward: 1. Are you properly intentioned? A nonprofit exempt under 501(c)(3) of the Internal Revenue Code must have a charitable, educational, or other 501(c)(3)-consistent purpose and must not be operated for the benefit of […]