Potential Impacts of the Trump Administration’s Executive Orders and Policies
In the weeks following the presidential inauguration, the new administration has released a large volume of Executive Orders and policies that apply to and affect a vast range of industries, businesses, and individuals. Naturally, the volume and pace of these new and changing policies has created a lot of uncertainty about the future of American […]
Applying for Tax Exempt Status? Pitfalls to Watch Out For
If you’ve ever considered starting a nonprofit organization, then you’ve probably taken a look at the IRS’ Application for Recognition of Tax-Exempt Status. IRS Form 1023 is a daunting application to say the least. At one point, the IRS estimated that for the average person to properly complete and submit the form would take more than 100 hours. It is the equivalent of getting audited before your organization even gets started. And after putting in all of that work, nearly 15% of applications never get approved.
What are some of the common mistakes that could hinder or delay your application, effectively destroying your mission-driven project before it even gets off the ground?
Nonprofit MOUs vs. Legal Contracts
It’s not unusual for nonprofit organizations to partner or collaborate with other organizations to accomplish a mutual purpose. Often, our nonprofit clients prefer to document these relationships with an MOU or Memorandum of Understanding. But just what is an MOU, and how is it different from a contract? A contract is simply a legally binding […]
Nonprofit Bylaws Checklist
Ohio’s nonprofit corporate law uses “bylaws” and “regulations” interchangeably. Under Ohio law, the incorporators (the people who establish the nonprofit corporation by filing Articles of Incorporation with the Secretary of State) may adopt regulations or bylaws that govern the organization
Best Practices for Nonprofit Board Governance
Running a nonprofit organization can be quite different from running a for profit business. Instead of a single owner(s) who can largely do whatever they like, you have a board of directors to answer to, extensive oversight from the IRS and Ohio Attorney General, not to mention keeping both donors and grant funders happy. And […]
Group Exemptions: Frequently Asked Questions
The IRS has special procedures in place for recognizing a group of organizations as tax-exempt if they are affiliated with a central organization. A group exemption can reduce the administrative burden on multiple related organizations, but it can also be difficult to navigate if there is a breakdown in communications or the relationship between the […]
Non-Profit Advocacy, Part 2: Using a Related Entity to Engage in Lobbying
So what is your non-profit organization to do if it decides that the best way to advance the mission is to influence legislation? This is where other types of tax-exempt status come into play.
Non-Profit Advocacy: Drawing the Line Between Permissible Advocacy and Forbidden Lobbying
The IRS defines lobbying as attempting to influence legislation. A 501(c)(3) organization risks losing its tax-exempt status if a substantial part of its activities is attempting to influence legislation.
Forming a Non-Profit Organization Part 3: Consider Fiscal Sponsorship
Fiscal sponsorship is the use of another non-profit organization’s tax-exempt status and often administrative resources to “sponsor” your project or new non-profit organization.
Forming a Nonprofit Organization Part 2: Applying for Tax Exempt Status
There are two ways of applying for recognition as a tax-exempt organization: IRS Form 1023-EZ or IRS Form 1023.
