Nonprofits
A nonprofit organization is one that, as a matter of law, does not have shareholders, and the profits of the organization are not distributable to the corporation’s members, directors, or officers. Nonprofit association members often take on great responsibility when they become directors and officers. These people are very passionate individuals who believe in the…
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We are living in a world today where financial information is open to the public. Even small fraudulent transactions could be tweeted or shared in the public space, which can damage the reputation of nonprofit organizations. In order to assure that the financials of nonprofit organizations are reliable and healthy, forming an audit committee is…
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Thinking of starting a new, nonprofit, tax-exempt organization? Trying to decide whether to organize as a c3 or c6? Know the difference? Whereas the c3 and c6 are alike in terms of exemption from income taxes, their qualifying characteristics, the application process (IRS Form 1023 vs. 1024), and the various rules governing their ongoing activities…
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In order for nonprofit organizations recognized as tax exempt to maintain tax-exempt status and avoid penalties, there are certain activities that are prohibited, and certain filing and disclosures required: Prohibited Activities Filing and Disclosure Requirements Additional ResourcesIRS Publication 4221-PC, “Compliance Guide for 501(c)(3) Public Charities”IRS Publication 4221-NC, “Compliance Guide for Tax-Exempt Organizations (other than 501(c)(3)…
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