It may not be the responsibility of an HR manager in the nonprofit sector to be aware of all of the laws that apply to nonprofits. However, there are some laws that have impact specifically on matters within the purview of the HR department that are worth being aware of. Here, we will briefly discuss […]
Private Benefit Rules – Part II: Private Inurement Doctrine
The private inurement doctrine is another private benefit rule applicable to public charities. The doctrine comes directly from the language of section 501 of the Internal Revenue Code that only organizations “no part of the net earnings of which inures to the benefit of any private shareholder or individual” may be exempt under section 501(c)(3). A […]
There is no “I” in Team: Common Private Benefit Problems for Booster Clubs
Booster clubs are commonly used by parents and students to help offset the costs of school or extracurricular activities such as participation in an athletic team, marching band, or academic decathlon team. Booster clubs are often parent controlled and formed; may conduct fundraising through a variety of efforts such as car washes, general solicitations, and corporate sponsorships; and may involve […]
Compensation Strategies and Best Practices for Nonprofit Organizations – Part Two
“Best Practices in Nonprofit Compensation” The laws regarding nonprofit compensation are another element that can make compensation a disliked topic in an organization. The penalties are severe and there are no precise formulas for generating a compensation plan. With public charities, the IRS mainly focuses on certain individuals such as directors and key employees. Excess […]
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