Why Are Charities Tax-Exempt?

Published on: September 28, 2015August 7, 2023 by Hana Takagi 4 Comments

Charitable organizations are eligible to be tax-exempt under section 501(c)(3) of the Internal Revenue Code. This is based on a common belief that giving to charities is good for society. However, with ever increasing reports of corruption and fraud, very large amounts of monies tied up in endowment funds of universities and foundations, and cries of unfair […]

5 Things Nonprofits Should Know About Ballot Measure Advocacy in California

Published on: May 7, 2014May 12, 2014 by Michele Berger

Ballot measure advocacy can be an important and powerful way to advance an organization’s mission and purpose. Last week, the Alliance for Justice hosted a Webinar to discuss the ways in which a 501(c)(3) organization may engage in ballot measure advocacy. Here is a list of 5 things nonprofits should know about advocating for […]

NEO Law Group’s Video on Tips for Starting a Nonprofit – Form 1023

Published on: February 11, 2014 by Michele Berger

NEO Law group recently posted a new YouTube video on 2 minute tips for starting a nonprofit. This video focuses on the Form 1023, the Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code. We hope that you enjoy it and please stay tuned for additional videos from NEO Law Group on […]

Starting a Nonprofit: What is “Religious” under 501(c)(3)?

Published on: October 19, 2012February 25, 2014 by Michele Berger 13 Comments

A “religious” purpose is one of the seven exempt purposes specified in Section 501(c)(3) of the Internal Revenue Code (the “Code”). However, unlike with the terms “charitable,” “educational,” and “scientific,” the term “religious” is not defined in the Treasury Regulations, in large part due to constitutional issues. IRS guidance explains “[u]nder the First Amendment, the […]

Starting a Nonprofit: What is “Charitable” under 501(c)(3)?

Published on: October 5, 2012July 31, 2023 by Michele Berger 1 Comment

A “charitable” purpose is one of the seven exempt purposes specified in Section 501(c)(3) of the Internal Revenue Code (the “Code”). According to the Treasury Regulations, the term charitable is to be interpreted in its generally accepted legal sense and includes, but is not limited to: Relief of the poor, distressed or underprivileged; Advancement of […]

Starting a Nonprofit: What is “Scientific” under 501(c)(3)?

Published on: August 31, 2012August 4, 2024 by Michele Berger

A “scientific” purpose is one of the seven exempt purposes specified in Section 501(c)(3) of the Internal Revenue Code (the “Code”). There is however little guidance about what qualifies as a scientific purpose. The Treasury Regulations refer to scientific by way of example, namely, the carrying on of scientific research in the public interest. This […]

Starting a Nonprofit: What is “educational” under 501(c)(3)?

Published on: August 2, 2012 by Gene Takagi 3 Comments

A 501(c)(3) organization may be organized and operated exclusively in furtherance of an educational purpose, but it is unclear to many startups what qualifies as educational. The first place to look is Treasury Regulation Section 1.501(c)(3)-1(d)(3), which provides that educational relates to: (a) The instruction or training of the individual for the purpose of improving or […]

Starting and Representing a Nonprofit – Pro Bono Issues – BASF

Published on: November 28, 2011 by Gene Takagi

Stephanie Petit, a principal with Adler & Colvin, and I will be presenting on Starting and Representing a Nonprofit- Pro Bono Issues for the Bar Association of San Francisco (301 Battery Street) on Wednesday, November 30, from noon to 1:30 p.m. You can register here to attend the event in person or by live webcast. On-demand […]

IRS: When Charities Lose, Everybody Loses

Published on: September 23, 2010 by Gene Takagi

Tax-exempt organizations that fail to satisfy annual filing requirements for three consecutive years automatically lose their tax-exempt status. The IRS is providing one-time relief that will allow small exempt organizations to come back into compliance and retain their tax-exempt status even though they failed to file for three consecutive years. If an organization loses its […]

UBIT: Scientific Purposes and Scientific Research

Published on: March 18, 2010 by Gene Takagi

In the context of scientific organizations, the IRS states that unrelated business income tax (UBIT) issues generally occur in two situations: (1) a scientific research organization (SRO) engaging in various projects or (2) a tax-exempt non-SRO engaging in research. “Scientific purpose” and “scientific research” are commonly seen phrases in the governing documents for 501(c)(3) tax-exempt […]