Business Nonprofit Board Member Liability Protections
Discover essential liability protections for nonprofit board members, including indemnification and D&O insurance, to safeguard against unexpected legal challenges that could arise.
Intermediate Sanctions Rules For Nonprofit Executive Compensation
Learn how intermediate sanctions rules shape nonprofit executive compensation and discover what happens if organizations fail to comply with these critical regulations.
Business Charitable Foundation Formation Requirements
Navigate the essential steps for establishing a business charitable foundation, but what crucial element could determine its success? Discover more inside.
Business Nonprofit Donor Privacy & Data Security Policies
In today’s digital age, understanding nonprofit donor privacy and data security policies is crucial for building trust; discover the key practices that can safeguard your organization.
Non-Profit Conflict of Interest Policy
Just how can a non-profit conflict of interest policy transform organizational integrity and trust? Discover the essential elements that make it effective.
Business Nonprofit Board Fiduciary Responsibilities
In navigating the complex landscape of nonprofit governance, understanding fiduciary responsibilities is essential—discover what it truly entails for your board’s effectiveness.
501(c)(3) Tax Exemption Application
Becoming a 501(c)(3) organization unlocks essential funding opportunities, but what steps must you take to ensure a successful application?
How to Challenge a Nonprofit IRS Determination
Inevitably, facing an IRS determination denial can be daunting, but understanding the appeal process could unlock your nonprofit’s potential for success.
Unrelated Business Income Tax
How does Unrelated Business Income Tax impact tax-exempt organizations, and what strategies can be employed to manage its effects effectively? Discover more within.
Business Nonprofit Corporate Governance Best Practices
Best practices in business nonprofit corporate governance ensure transparency and accountability, but what key strategies can elevate your organization’s impact?
Non-Profit Policy
The framework of non-profit policy is crucial for operational success, yet hidden challenges may threaten organizational integrity and mission fulfillment. Discover what lies beneath.
Public Charity Status
Public charity status empowers nonprofits with tax-exempt benefits, but what crucial steps must be taken to achieve and maintain this prestigious designation?
Supporting Organization
Guiding nonprofits towards greater impact, supporting organizations unlock resources and expertise, but what secrets do they hold for sustainable change?
Business Nonprofit Gift Acceptance Policy Structuring
Proficiently structuring a Business Nonprofit Gift Acceptance Policy can enhance donor relations and ensure compliance; discover the essential elements that lead to success.
Legal Considerations for Wrongful Termination in Non-Profit Organizations
The legal landscape of wrongful termination in non-profits can be complex, revealing critical insights that every organization must understand to protect itself.
Who Can a Nonprofit Give Funds to When Dissolving?
Note: This article is based on Minnesota law. The law in other jurisdictions may vary. Most nonprofit organizations—including charities, churches, hospitals, and schools—eventually come to an end. As an organization’s Board of Directors prepares to close the doors and terminate, it needs to determine what to do with the organization’s remaining funds. That is, the…
Unrelated Business Income Tax: Nonprofit Organizations & UBIT Cases
1. Unrelated Business Taxable Income The purpose of this article is to explain developments in the area of unrelated business income (“UBI”) and the unrelated business income tax (“UBIT”). This article focuses on important court decisions. The decisions have been grouped, for the most part, into three perennial areas of controversy: social clubs, advertising, and…
How Much Does It Cost to Set Up a 501(c)(3) Nonprofit Organization?
When business owners want to give back to their community and support their philanthropic values, they sometimes ask me how much it costs to start a tax-deductible charitable donation. This article summarizes the costs (as of 2020) to creating your own 501(c)(3) nonprofit organization. What are the costs to set up a 501(c)(3) nonprofit organization?…
Nonprofit Organizations Can Lose Their Tax-Exempt Status
1. Taxation of Revoked Tax-Exempt Organizations: the Synanon Case When attorney Paul Morantz discovered the hard way that a four-foot rattlesnake was residing in his mailbox one day in October 1978, he had more pressing concerns than to wonder about the possible income tax implications of the event. Although he immediately might have suspected that…
How to Merge Nonprofit Organizations
What is a Merger of a Nonprofit Organization? In this video, you get answers to these questions: What is a merger of a nonprofit organization? What is a nonprofit organization? What would be an example of a nonprofit organization? Who owns a nonprofit organization? What is a 501(c)(3) organization? Can you receive donations as a…
Minnesota Charity Law: Guide for Nonprofit Board of Directors
Guide for Charity Board Members This Guide is provided by the Minnesota Attorney General’s Office to assist board members with the important responsibilities they assume when elected to a nonprofit corporation’s board of directors. It is only a guide and is not meant to prescribe exactly how board members must act in all situations. Each…
Overview of Minnesota Nonprofit Law
Minnesota nonprofit organizations are governed by the Minnesota Nonprofit Corporation Act, Minn. Stat. ch. 317A. A nonprofit corporation’s purpose and activities must serve the organization’s mission to benefit the public, and may not be operated to profit other persons or entities. Tax-Exempt Status of Nonprofits Most nonprofits are exempt from taxation. There are more than two…
Nonprofit Organization Members Have These 4 Legal Rights
Members of Minnesota nonprofit organizations have a variety of legal rights established in the Minnesota Statutes. These rights are especially important when the members have a dispute with their organization’s board of directors. The following are a few examples of some of your rights as a member of a nonprofit organization in Minnesota. 1. You…
How Updates to Minnesota’s Nonprofit Corporation Act Impact You
Given the frenetic state of national politics you would be forgiven for not looking too deeply into what the updates to Minnesota’s Nonprofit Corporation Act (Chapter 317A) mean to you and your organization. On April 18, 2017, the Minnesota Senate approved changes to the Act and the Minnesota House approved the same changes on February…
The Johnson Amendment: What its Repeal Would Mean to your Nonprofit Organization
What is the Johnson Amendment In 1954, then Senator Lyndon Johnson sponsored legislation that applied to organizations recognized as tax-exempt under Section 501(c)(3) of the Internal Revenue Code. The legislation prohibited tax-exempt organizations, largely churches, from “directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any…
Starting a New Business: Nonprofit or For-Profit Sector?
Say you have a brilliant idea and want to start an organization to actualize your vision. Oftentimes, these ideas are more than classic profit maximizing endeavors, they may have positive social impacts as well. What type of organization should you start? The first question to ask is, what sector should your organization be in? The…
Social Enterprise: A Nonprofit, For Profit, or Something In Between?
What is a social enterprise? A social enterprise is an organization applying commercial strategies to maximize improvements in human and environmental well-being; can include maximizing social impact alongside profits for external shareholders Organizations can be social and profitable in three main ways: 1) Social By Sharing – “Social” because they share some or all of their profit with…
Churches and Other Religious Organizations: Ancillary Activities
What are religious organization ancillary activities? Activities undertaken by a church or a religious organization that are in addition to or outside the traditional activities of a church or religious organization. Are there different types of religious organization ancillary activities? Yes, there are four different types of ancillary activities. 1) Primary Purpose Activities – Outgrowth…
Social Franchising: Franchise a 501(c)(3) Nonprofit Organization
This article explains issues to consider when exploring the concept of expanding a nonprofit organization into various geographic areas by working jointly with a local leader in those areas. This article does not address nonprofit organizations owning business franchises. Social Franchising: Geographic Expansion of a Nonprofit Nonprofit organizations have begun using a franchise model to…
How to Start a Nonprofit Organization in Minnesota
This article summarizes the steps involved in starting a 501(c)(3) nonprofit organization in Minnesota. Introduction There are two stages to consider when creating a nonprofit organization in Minnesota: first, drafting and filing the legal documents required to create a nonprofit organization, and second, applying to the IRS for 501(c)(3) status, if desired. Stage 1: Form…
