Clarifying Governance in Hybrid Profit & Nonprofit Models
Harnessing clarity in governance is key to balancing profit motives with nonprofit missions—discover how to navigate this complex synergy effectively.
Do L3Cs Qualify for Federal Tax-Exempt Status?
Balancing profit and purpose, L3Cs face unique challenges in qualifying for federal tax-exempt status. Discover why the IRS sees things differently.
Legal Structure Options for Nonprofit-For-Profit JVs
Balancing mission with profit requires choosing the right legal structure for nonprofit-for-profit JVs—discover the options that best protect your goals and assets.
Ownership Rules: L3Cs Compared to B Corps and Nonprofits
Grasp the unique ownership rules distinguishing L3Cs, B Corps, and nonprofits—and discover how these differences impact mission-driven success.
Nonprofit Volunteer Agreement
Learn how a nonprofit volunteer agreement can enhance collaboration and protect both parties, but what key elements should it really include?
Nonprofit Business Venture Regulations
Building a successful nonprofit business venture requires understanding complex regulations that could jeopardize your tax-exempt status if overlooked. Discover the crucial details now.
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…
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…
Practices of Failing & Thriving Nonprofit Board of Directors
There are more than 1.5 million nonprofit organizations in the United States. In any given year thousands of these organizations are forced to merge, collapse, or dissolve. What is the difference between nonprofit organizations that fold and those that grow? Oftentimes, a big determinant of a nonprofit organizations’ success is the functionality of its board…
How Much Should Nonprofits Pay Employees?
The economics of keeping a nonprofit organization viable are always tricky, especially when it comes to employee wages. Between minimum and living wage ordinances and new overtime regulations, nonprofit organizations nationwide are struggling to ensure their payroll, budget, and rate formulas all add up. Oftentimes nonprofit organizations are faced with a vexing challenge of allocating…
Nonprofit Board of Directors FAQs
Are nonprofit boards democratic? Assuming the governing documents of a particular nonprofit organization do not alter the law (which is possible), each member of a nonprofit organization’s board of directors has one vote. Standard board practice is generally democratic, with each member having a vote and actions of the board as a governing body being passed or…
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…
Must Churches File Form 1023 for 501(c)(3) Tax Exemption?
Churches may wonder whether they must file IRS Form 1023 to be considered a tax exempt religious organization under 501(c)(3). The IRS Instructions to Form 1023 provide the following: Form 1023 not necessary. The following types of organizations may be considered tax exempt under section 501(c)(3) even if they do not file Form 1023. Churches,…
501(c)(3) Church Eligibility: Religion vs. Philosophical View
Recently, I wrote about the test for determining whether a religious organization qualifies as a church, and thus, a tax exempt organization, even though the organization does not obtain 501(c)(3) status by completing Form 1023. Another important issue for churches seeking tax-exempt status as a 501(c)(3) is whether their belief system will qualify as a…
Minnesota Requirements for Nonprofits Organizations from Other States
I have assisted a number of nonprofit organizations from other states who want to have a branch, division, or office in Minnesota. Often, these are 501(c)(3) organizations. The following information outlines the steps required to operate in Minnesota as a nonprofit organization from another state. Minnesota Secretary of State Registration Minnesota law requires any business…
Help for Minnesota Charitable Organizations Initial Registration
The following questions and answers are provided to help people completing the Minnesota Charitable Organization Initial Registration & Annual Report Form. I have received questions from people completing the State of Minnesota: Charitable Organization Initial Registration & Annual Report Form. Here are my responses. Question: When do I need to file the Minnesota Charitable Organization…
Your Legal Duties Serving on a Nonprofit Board of Directors
This article explains the legal responsibilities of those serving on the board of directors of a Minnesota nonprofit organization. Introduction It is an honor to be asked to serve on a board of directors for a Minnesota nonprofit organization. Unfortunately, many people accept appointment or election to a board of directors without realizing what is…
501(c)(3) Church Eligibility: Religion vs. Philosophical View
Recently, I wrote about the test for determining whether a religious organization qualifies as a church, and thus, a tax exempt organization, even though the organization does not obtain 501(c)(3) status by completing Form 1023. Another important issue for churches seeking tax-exempt status as a 501(c)(3) is whether their belief system will qualify as a…
Must Churches File Form 1023 for 501(c)(3) Tax Exemption?
Churches may wonder whether they must file IRS Form 1023 to be considered a tax-exempt religious organization under 501(c)(3). The IRS Instructions to Form 1023 provide the following: Form 1023 not necessary. The following types of organizations may be considered tax exempt under section 501(c)(3) even if they do not file Form 1023. Churches, including…
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…
