Nonprofit Exempt Organizations may be exempt from income taxation, but not from the IRS or State taxing entities. Exempt organizations are generally required to file annual returns of the income and expenses for the nonprofit. (Do not forget your State...
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Free Speech Fairness Act Proposed in the House of Representatives
Last week, legislation was filed, entitled the "Free Speech Fairness Act," which would permit nonprofit organizations to engage in political communications in the course of their regular and customary activities. The bill, H.R. 6195, aims to fix the 1954 "Johnson...
Fiduciary Duties in Nonprofit Organizations
"I'm a member of the Board of Directors of a local nonprofit organization and have been told that I owe a 'fiduciary duty' to the tax-exempt organization. What is a fiduciary duty?"It's very common for volunteers serving on a board of directors of a nonprofit...
Nonprofit Organizations and Public Access to IRS Records
We all know that certain information regarding nonprofit organizations is public information. If a person requests information such as the nonprofit's tax returns, the organization is required to provide the information in a reasonable time.The IRS has a new...
Nonprofit Organizations and State Tax-Exempt Applications
"My 501(c)(3) nonprofit organization recently received its federal tax exemption. Is the organization also exempt from California state income tax?" First of all, congratulations on obtaining your tax-exempt status as a 501(c)(3) nonprofit organization! As you're...
What’s the Difference Between a Public Charity and Private Foundation?
Every nonprofit organization that qualifies for a tax exemption under Internal Revenue Code Section 501(c)(4) is a private foundation, unless it falls into an excluded category. According to I.R.C. Section 509(a), the following organizations are considered "public...
Restriction of Political Campaign Intervention by Section 501(c)(3)
Tax-exempt nonprofit corporations in this controversial election cycle need to be mindful of the restrictions related to political activity. A reminder to 501(c)(3) tax-exempt organizations regarding specifically the absolute prohibition against support or...
3 Steps to Successfully Start and Operate a Nonprofit
Forming a Nonprofit Organization: Before an entity may quality for tax-exempt status with the IRS, it must be created as a corporation, a trust, or an unincorporated association (note: partnerships generally do not qualify). In California, the nonprofit formation...
Nonprofits – Are Your Donors’ Gifts Safe?
Public Nonprofits and 501(c)(3) chartiable organizations have an obligation to ensure the donations received are properly documented. The IRS regulations are complicated and cumberson. The failure to follow the IRS regulations related to...
New Regulations for Homeowners’ Associations & Other 501(c)(4) Organizations
Homeowners' Associations and other social welfare organization exempt under IRS section 501(c)(4) are subject new regulations. As part of section 405 of the "Protecting Americans from Tax Hikes Act of 2015", enacted December 18, 2015, certain provisions...
