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Types of Nonprofits by Definition
Nonprofit Internships - Igdealist.org
What are NGOs? - Are they Nonprofits?
KBLX 102.9 Nonprofit Weekend Tip! What are 501c4 Organizations?

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Attorneys: Links for Pro-Bono Nonprofit Business Attorneys

Pro-Bono Legal Services/Community Service for Nonprofit Businesses by City/State:

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Types of Nonprofits by Definition



NONPROFITS DEFINED BY TYPE 

The most common form of nonprofit is the , a tax-exempt organization recognized by the IRS. These are the nonprofits we most commonly contribute to, volunteer for, and hear about through the media. 

But there are many types of nonprofits that are registered by the IRS, and they all have different designations. For instance, a child care nonprofit is a 501(k) and a Chamber of Commerce is a 501(c)(6).

Here is a list of the types of nonprofits that the IRS recognizes. This information comes from IRS Publication 557, your bible if you are considering filing for nonprofit status.   In addition, provides information about which of these organization can accept tax-deductible contributions. Check out these publications for more specific information about nonprofit classifications. 

TYPES OF NONPROFITS: 

501(c)(1)
These are corporations organized under Act of Congress. Federal Credit Unions are a good example of this type of nonprofit. These nonprofits do not have to file an annual return. Tax-exempt contributions are allowed if they are made for exclusively public purposes.



501(c)(2)
These are holding corporations for exempt organizations. That is, they can hold title to property of an exempt group. They apply for nonprofit status using IRS form 1024. They annually file forms 990 or 990EZ.  

501(c)(3)
This is the most common type of nonprofit. It includes organizations that are religious, educational, charitable, scientific, and literary; groups that test for public safety, that foster national or international amateur sports competition; or organizations engaged in the prevention of cruelty to children or animals.This type of nonprofit applies for its status using IRS form 1023, and files annually form 990, 990EZ, or 990-PF. Contributions are usually tax-exempt. 



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501(c)(4)
These are civic leagues, social welfare organizations, and local associations of employees. They promote community welfare, charitable, education or recreational goals. They apply using IRS Form 1024. They file annually 990 or 990EZ. 

501(c)(5)
Labor, agricultural, and horticultural organizations fit under this classification. They are educational or instructive, with the goal of improving conditions of work, and to improve products and efficiency. They apply by using IRS Form 1024, and file annually form 990 or 990EZ. 

501(c)(6)
These organizations are business leagues, chambers of commerce, real estate boards, etc. They seek to improve business conditions. They apply using IRS form 1024 and file annually the 990 or 990EZ. 

501(c)(7)
Social and recreation clubs fall into this category. They promote pleasure, recreation, and social activities. They apply using IRS form 1024 and file annually the 990 or 990EZ. 

501(c)(8)
This category includes fraternal beneficiary societies and associations. They provide for the payment of life, sickness, accident, or other benefits to members. They apply using IRS form 1024 and file annually the 990 or 990EZ.

501(c)(9)
These are voluntary employees' beneficiary associations. They provide for the payment of life, sickness, accident, or other benefits to members. They apply using IRS form 1024 and file annually the 990 or 990EZ. 

501(c)(10)
Domestic Fraternal Societies and Associations. A lodge devoting its net earnings to charitable, fraternal, and other specified purposes. No life, sickness, or accident benefits to members. Apply using IRS form 1024 and file annually the 990 or 990EZ. 

501(c)(11)
Teacher's Retirement fund Associations. Associations for payment of retirement benefits. Apply using IRS form 1024 and file annually the 990 or 990EZ. 

501(c)(13)
Cemetery Companies. Loans to members. Uses Form 1024 for application. Files annually the 990 or 990EZ.

501(c)(14) State Chartered Credit Unions, Mutual Reserve Funds. Loans to members. No application form. Files annually the 990 or 990EZ.  

501(c)(15)
Mutual Insurance Companies of Association. Provide insurance to members, mostly at cost. Applies using Form 1024. Files annually the 990 or 990EZ.


501(c)(16)
Cooperative Organizations to Finance Crop Operations. Finance crop operations in conjunction with activities of a marketing or purchasing association. No form to apply. Files annually the 990 or 990EZ. 

501(c)(17)
Supplemental Unemployment Benefit Trusts. Provides for payment of supplemental unemployment compensation benefits. Applies using Form 1024. Files annually the 990 or 990EZ.


501(c)(18)
Employee Funded Pension Trust (created before June 25, 1959). Payment of benefits under a pension plan funded by employees. No form. Applies using Form 1024. Files annually the 990 or 990EZ. 

501(c)(19)
Post or Organization of Past or Present Members of the Armed Forces. Activities according to the nature of organization. Applies using Form 1024. Files annually the 990 or 990EZ. 

501(c)(20)
Group Legal Services Plan Organizations. 

501(c)(21)
Black Lung Benefit Trusts. Funded by coal mine operators to satisfy their liability for disability or death due to black lung diseases. No form for filing. Reports on tax form 990-BL. 

501(c)(22)
Withdrawal Liability Payment Fund. Provides funds to meet the liability of employers withdrawing from a multi-employer pension fund. No form to file. Tax forms 990 or 990EZ. 

501(c)(23)
Veterans Organization (created before 1880). Provides insurance and other benefits to veterans. No form to apply. Uses tax forms 990 or 990EZ.

501(c)(25)
Title Holding Corporations or Trusts with Multiple Parents. Holding title and paying over income from property to 35 or fewer parents or beneficiaries. Applies with form 1024. Files tax forms 990 or 990EZ.

501(c)(26)
State-Sponsored Organization Providing Health Coverage for High-Risk Individuals. Provides health care coverage to high-risk individuals. No form for applying. Files tax forms 990 or 990EZ. 

501(c)(27)
State-Sponsored Workers’ Compensation Reinsurance Organization Reimburses members for losses under workers’ compensation acts. No form for applying. Files tax forms 990 or 990EZ. 

501(d)
Religious and Apostolic Associations. Regular business activities. Communal religious community. No application form. Files tax form 1065. 

501(e)
Cooperative Hospital Service Organizations. Performs cooperative services for hospitals. Use 1023 to apply. Files tax forms 990 or 990EZ. 

501(f)
Cooperative Service Organizations of Operating Educational Organizations. Performs collective investment services for educational organizations. Applies with form 1023. Files tax forms 990 or 990EZ. 

501(k)
Child Care Organizations. Provides care for children. Apply with 1023. Files tax forms 990 or 990EZ. 

501(n)
Charitable Risk Pools. Pools certain insurance risks of 501(c)(3). Apply with form 1023. Use tax forms 990 or 990EZ. 

521(a)
Farmers’ Cooperative Associations. Cooperative marketing and purchasing for agricultural producers. Applies using Form 1028. Tax form 990-C. 


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Nonprofit Internships - Igdealist.org


IDEALIST.ORG 

January 2015 and still open .....


Internship posted by Hattaway Communications, Inc. - February 3, 2015 Full Time Paid Internship JOB DESCRIPTION We are looking for an intellectually curious, dynamic self-starter who can assist the team with administrative needs, office management, business development and research—while learning about our client projects, products and approach to strategic commun... Washington, DC, US Last updated February 3, 2015 Internship posted by Omaze - March 3, 2015  

Operations Internship - Paid We are seeking an all-star Operations Intern who's looking to get in on the ground floor of a company with an absurdly audacious vision for changing the world. You will partner with the Talent & Culture team to generate and execute ideas to recruit, grow and keep top-no... Venice, CA, US Last updated March 3, 2015  Internship posted by National Hispanic Council on Aging - February 12, 2015

Finance and Office Manager Internship (Paid Part-Time) Finance and Office Manager Internship (Paid – Part-Time) OVERVIEW The National Hispanic Council on Aging (NHCOA) is dedicated to improving the lives of Hispanic older adults, their families, and their caregivers. NHCOA, established in 1979, is a nonprofit 501©3 organiz... Washington, DC, US Last updated February 12, 2015 Internship posted by Year Up - January 20, 2015  


Finance Paid Internship Are you interested in a career in technology, finance, or business? Year Up is a one-year, intensive training program that provides young adults with hands-on skill development, corporate internships, an educational stipend, and college credits. The program consists o... Boston, MA, US Last updated January 20, 2015 Internship posted by Year Up - January 20, 2015


 Technology Paid Internship Are you interested in a career in technology, finance, or business? Year Up is a one-year, intensive training program that provides young adults with hands-on skill development, corporate internships, an educational stipend, and college credits. The program consists o... Boston, MA, US Last updated January 20, 2015 Internship posted by Society for Personality and Social Psychology - February 17, 2015

PAID Meeting and Events Intern SPSP seeks an energetic intern to assist with planning the 2016 annual convention. Interns receive exposure to many members and volunteers (social and personality psychologists) and will participate in a variety of tasks geared toward supporting the upcoming convention.... Washington, DC, US Last updated February 17, 2015 Internship posted by AHA Foundation Inc. - January 14, 2015

Check Out  www.idealsit.org


What are NGOs? - Are they Nonprofits?


What is an NGO? Non-governmental organization  

NGOs are Nonprofit organizations 

The term "non-governmental organization" was first coined in 1945, when the United Nations (UN) was created.  NGOs are difficult to define, and the term 'NGO' is rarely used consistently.  

A non-governmental organization (NGO) is an organization that is neither a part of a government nor a conventional for-profit business. Usually set up by ordinary citizens, NGOs may be funded by governments, foundations, businesses, or private persons. Some avoid formal funding altogether and are run primarily by volunteers. 

NGOs are highly diverse groups of organizations engaged in a wide range of activities, and take different forms in different parts of the world. Some may have charitable status, while others may be registered for tax exemption based on recognition of social purposes; yet others may be fronts for political, religious or other interest groups.

One characteristic these diverse organizations share is that their non-profit status means they are not hindered by short-term financial objectives. 

Public surveys reveal that NGOs often enjoy a high degree of public trust and are termed as civil society organizations in many jurisdictions.  Variations of NGOs include:
  • BINGO (business-friendly international NGO or big international NGO); the Red Cross is one example of a BINGO.
  • ENGO (environmental NGO); the World Wildlife Fund is one example of an ENGO.
  • GONGO (government-operated NGO), by definition not an NGO but an organization created by a government to resemble an NGO to further some agenda.
  • INGO (international NGO); Oxfam is one example of an INGO.
  • QUANGO (quasi-autonomous NGO), an NGO which may have some governmental members; the ISO is one example of a QUANGO.
  • RINGO (religious international NGO); the Catholic Relief Services is one example of a RINGO.
  • Other NGO acronyms include DONGO (Donor Organized NGO), TANGO (technical assistance NGO) and MANGO (market advocacy NGO).
 
What is the purpose of an NGO?

NGOs emphasize the core issue related to human cause like sustainable development, developmental aid and other humanitarian issues.  

 The Number of NGOs:

The number of NGOs in the United States is estimated at 1.5 million 

1-2 million NGOs in India  

277,000 NGOs in Russia.


 In the 20th century, the Globalization makes the people understand the importance of NGOs.  

 The Top 20 NGOs  are:               http://theglobaljournal.net/top100NGOs/ 

  1.           BRAC (formerly the Bangladesh Rural Advancement Committee)    "The largest non government development organization on the planet – has claimed this year’s top spot. A member of the era defining 1970s wave of Bangladeshi microcredit and microfinance pioneers alongside the Grameen Bank and ASA, BRAC has since gone on to outpace its old counterparts and assume an unparalleled position in the crowded field of international development." "Ranking criteria – impact, innovation and sustainability – BRAC meets all of the criteria; involved in the microfinance to the tune of approximately $9 billion – the organization has carefully, but steadily, diversified into a wide suite of activities, from agriculture and food security to education, legal aid, climate change risk reduction, livelihoods support and maternal and child health."  

2.             Wikimedia Foundation        "In 11 short years, Wikimedia Foundation’s flagship initiative – ubiquitous online encyclopaedia Wikipedia – has revolutionized the way knowledge is collected and shared. By now, most are familiar with the Wikipedia model, which is based around open access for all Internet users, a commitment to multilingualism and constant edits and updates carried out by an army of approximately 100,000 eager volunteers. Most striking, however, in an age of multi-billion dollar Facebook IPOs, is the organization’s bedrock belief in the notion that information should never represent a profit-driven commodity." "Wikimedia Foundation exists as perhaps the most influential non-government actor in the field of education today. Operating with a shoestring staff of 142, the organization is responsible for managing the platform facilitating the largest collection of shared knowledge in human history – currently 23 million articles and counting. To date, Wikipedia is available in 285 languages and is visited by more than 470 million people per month. Wikimedia Foundation’s future strategy is the continued expansion of Wikipedia in the languages of the developing world, where access to information is seen to represent not only a personal asset, but also an essential dimension in building an engaged citizenry at the societal level." 

3                Acumen Fund   "In 2011, New York-based Acumen Fund celebrated a decade long experiment in 21st century charitable giving. Conceived with seed capital from the Rockefeller Foundation, Cisco Systems Foundation and three individual philanthropists, the organization has a diverse portfolio of over $81 million in investments in 72 countries worldwide. Acumen Fund focuses on transformation loans or equity-based investments. Partnering in projects estimated to have benefited over 86 million people to date."

4.              Danish Refugee Council           "Formed after the devastation of World War II and the European refugee crises triggered by the Soviet invasion of Hungary in 1956, has been a constant, trusted presence in the humanitarian sphere for over 50 years. The organization’s activities revolve around the protection of refugees and internally displaced persons from immediate persecution in acute emergency situations, as well as the promotion of lasting solutions for conflict-affected populations (including via targeted international advocacy). Currently operating in over 35 countries in service of more than 1.5 million people.'  

5.               Partners In Health             Often linked in the public mind with the critical voice of high-profile co-founder Paul Farmer, Partners In Health has, since its beginnings as a community-based health project in the mountainous Central Plateau of Haiti, come to be recognized as perhaps the pre-eminent public health NGO globally. The organization is guided by the same passion that drove those young adults responsible for its conception – namely an overwhelming "sense of solidarity, rather than charity, when dealing with the world’s poorest and most underserved populations. In practice, this vision is manifest in Partners in Health’s holistic model of patient care, which emphasizes the need to alleviate the economic and social burdens of poverty that exacerbate diseases like HIV/AIDS and multi-drug resistant tuberculosis, Fuelled by a simple credo: “whatever it takes.” In collaboration with longstanding partners Harvard Medical School and Brigham and Womens Hospital, are impressive in scope"  

6.                 Ceres      "Since 1989, Boston-based NGO Ceres has lead the world in efforts to; tackle climate change, clean energy, water scarcity and supply chain sustainability by leveraging the undeniable power of business and capital markets, the organization has succeeded in influencing corporate governance practices to value the competitive advantage promised by sustainable strategies. Ceres’holds a unique position at the nexus of the business, investment and community advocacy."

7.                   CARE International      "Originally formed in 1945 as a symbol of American empathy for the exhausted populations of war-torn Europe (hence, ‘care packages’), the organization has grown into a diverse confederation of 12 national members working in 84 countries to the benefit of 122 million people. Still a first responder in the event of natural disasters or conflict, CARE International has also shifted its mission to embody a holistic approach to fighting global poverty and enhancing human dignity, with a special focus on female empowerment.""CARE has a long-term presence in many of the world’s most vulnerable countries, CARE International is well placed to implement a comprehensive approach, involving pre-emergency resilience and preparedness projects, immediate relief operations and longer-term recovery and community rehabilitation. A leader in its commitment to international standards of accountability and institutional learning."  

8.                   Médecins Sans Frontières       "Launchpad for the now inescapable ‘without borders’ movement, Médecins Sans Frontières has developed, over the course of its 41-year history, provides medical assistance. Founded in 1971 by 13 doctors – including former French Foreign Minister, Bernard Kouchner – the organization is presently active in 68 countries, with operations encompassing close to 32,000 staff. Médecins Sans Frontières takes sometimes controversial ethical stands against governments, a humanitarian NGO predominantly based around private donations rather than institutional grants"   

9.                    Cure Violence     "Looks at the enduring cost of ‘everyday’ interpersonal violence globally. Aligned with fellow peacebuilding NGOs in spirit, the groundbreaking Chicago-based organization Cure Violence (formerly CeaseFire) is focused on addressing violence through an innovative model developed by its founder, epidemiologist Gary Slutkin. "Cure Violence achieves this goal by identifying those most at risk and treating this core group via a staff of highly-trained ‘violence interrupters’ – former perpetrators employed to disrupt conflicts before they erupt and educate the community about the consequences of violent behavior. Cure Violence has achieved proven results, with 16-34 percent reductions in shootings and killings directly attributed to its programs, and 41-73 percent overall." 

10.                        Mercy Corps     "First established as the Save the Refugees Fund in response to the atrocities of Pol Pot’s Cambodian killing fields to one of the pre-eminent international development NGOs in the world today. Based in Portland but active in over 41 countries, Mercy Corps’ pioneering commitment to using relief and recovery programs to strengthen civil society for the long-term has seen the diversification of its high-impact, cost effective activities across a range of program areas and locations. Focused on entrepreneurial strategies in ‘stable’ operating environments, Mercy Corps works in this way with affected communities as a means to accelerate the process of post-disaster or post-collapse recovery." 
 
                                     ***********************

WHAT IS THE DIFFERENCE BETWEEN A NGO AND A NONPROFIT? A NGO is a non-governmental organization.  

NGOs do not contrast directly with Nonprofit organizations because they are a category of nonprofit organization. An NGO is independent of government insight, meaning it is not part of a government entity.  

NGOs are Nonprofits  

NGOs do not have a formal definition, the NGO tag typically is not applied to organizations based in the United States that have a solely domestic mission, though they technically fit the profile.


NGOs most often are referred to as nonprofit organizations with an international reach. 

                                      **************************


Let's continue with the top 20 NGO's according to The Global Journal 


11.                    APOPO           "Based in Morogoro, the humanitarian organization has spent the last 15 years honing its unique approach to training rats as mine detectors, and exported this ‘technology,’ despite initial skepticism, to four countries in Africa and South East Asia. Cheaper, quicker and lighter than conventional de-mining methods, APOPO’s African Giant Pouched Rats – endemic to sub-Saharan Africa – have helped return more than 6 million square meters of suspected minefields to local populations in Mozambique alone." "The organization has also continued to innovate, diversifying into the field of public health by training the same ‘HeroRATs’ to detect tuberculosis in human sputum samples – a faster, more accurate diagnostic method capable of screening thousands of patients every month."  

12.                Root Capital      "As William Foote realized during travels in Mexico, however, small and medium-sized rural businesses in the developing world were often caught in a quandary – considered too small and risky for mainstream banks, and too large for the burgeoning microfinance movement. Returning to Boston, Foote went on to launch Root Capital in 1999 as a non-profit social investment fund targeting grassroots businesses in the “missing middle.”" "In 2012, the organization had disbursed over $460 million in loans to sustainable enterprises in Africa and Latin America, reaching 2.6 million people in poor, environmentally vulnerable rural communities. Beyond managing two innovative investment portfolios, Root Capital has also multiplied its impact by delivering targeted financial advisory services and catalyzing a wider market in rural financing." 

13.                       Handicap International            "Founded on the Thai-Cambodian border in 1982 as a response to landmine injuries suffered by refugees fleeing the Khmer Rouge, Handicap International provides crucial assistance to acutely vulnerable people in dire situations of poverty, exclusion, war and disaster, taking action and raising awareness to respond to their essential needs, improve their living conditions and promote respect for their dignity and fundamental rights. Active in over 60 countries and a co-founder of the International Campaign to Ban Landmines."  

14.                             International Rescue Committee      "Founded in 1933 at the request of none other than Albert Einstein, the New York-based International Rescue Committee offers lifesaving care and life-changing assistance to refugees forced to flee from war or disaster. Evolving into one of the world’s leading humanitarian agencies providing emergency relief, rehabilitation, protection, resettlement services and advocacy, the organization works in over 40 countries worldwide, as well as managing the Surge Protection Project in collaboration with the United Nations High Commissioner for Refugees. International Rescue Committee is also committed to laying the groundwork for lasting peace and economic development. The organization has been working with Japanese fishermen in the wake of the devastation left behind by the 2011 tsunami, as well as helping undercapitalized local farmers in Zimbabwe access global markets through the ‘Tabasco’ initiative in partnership with the McIlhenny Company." 


15.                       Barefoot College                  "Founded by Bunker Roy in 1972 to provide basic services and solutions to problems in rural communities in his native India, Barefoot College has since nurtured a form of grassroots social entrepreneurship, helping participants forge their own path out of poverty. Open only to individuals without a formal education, grounded in practical knowledge, to demystify and decentralize sophisticated technology, in the process training an army of ‘barefoot professionals’: teachers, doctors, midwives, mechanics and architects in the millions." 


16.                         Landesa              "Seattle, Washington based Landesa works to secure land rights for the world’s poorest people – those 2.47 billion chiefly rural individuals who live on less than two dollars a day. Of this group, more than a billion lack legal rights over the land they use to survive, causing entrenched poverty cycles to persist over generations. For more than 40 years, the organization has worked to advance durable land rights to achieve transformational change on a large scale. Landesa works with governments and other local organizations to create tailored approaches to expanding land rights to the rural poor. In all, the NGO has helped bring security of tenure to more than 105 million families, representing a beneficiary pool of over 400 million people." 

17.                          Ashoka                "In 1981 when a 20 year-old Bill Drayton launched Ashoka as an organization dedicated to supporting the dreams of social innovators worldwide, he was walking a solitary path. Thirty years later, and Ashoka has evolved into an association of over 3,000 fellows in more than 70 countries. Ashoka identifies and invests in leading social entrepreneurs, engaging communities of entrepreneurs to develop patterns of effective collaboration, and working to deliver necessary infrastructure, such as access to social financing, bridges to business and academia, and the frameworks for partnerships."  


18.                       One Acre Fund       "Andrew Young founded One Acre Fund as a means to improve livelihoods amongst  farmers using market-based methods as an alternative to traditional food aid. From this innovative idea, the organization has expanded to serve over 130,000 farming families in Kenya, Rwanda and Burundi. One Acre Fund program is a ‘market bundle’ of services – including seed and fertilizer, financing, education and market facilitation – that enables farmers to double their income per planted acre in one year. Committed to data-driven program development and donor accountability, the organization has also pioneered a rigorous system of internal and external performance monitoring used to ensure increased scale is not pursued at the cost of quality of impact and sustainability."  

19.                        Clinton Health Access Initiative               "In 2002, President Bill Clinton launched the ‘Clinton HIV/AIDS Initiative’ under the auspices of his Clinton Foundation to not only bring care and treatment to people living with the disease, but also strengthen health infrastructures in resource-poor countries. The Clinton Health Access Initiative is a willing partner to governments committed to improving in-country health systems, and as an active player in the movement to develop the market for medicines and the efficiency of health resource allocation at the global level. Preferring to focus on organizational and managerial factors – Its headline achievement to date was a successful negotiation with companies to secure lower prices for essential HIV/AIDS retroviral drugs, resulting in more than $1 billion in cost savings shared by over 4 million people." 

20.                       Heifer International          "Dan West realized that individuals needed “a cow, not a cup” – the difference between temporary aid and a long-term investment in overcoming poverty and hunger. The organization provides families with a ‘living loan’ – a donation of livestock, accompanied with training in animal husbandry, care and sustainable grazing methods. The receiving family must “pass on the gift” by transferring their knowledge and donating one or more of their animal’s offspring to another family. This practice ensures project sustainability, develops community and enhances self-esteem by allowing project partners to become donors." "A highly-participatory model, Heifer International works with communities to decide what types of animals and production systems they want, and who should receive animals. Since its inception, the organization has helped 15.5 million families in more than 125 countries move toward greater self-reliance, with third-party evaluations confirming a substantive impact on household incomes, assets and family nutrition."  


 "What do I Want to be When I grow Up?"  In the light of these Top 20 NGOs, Domestic Nonprofits need to begin to ask the question - What do I want to be and how many underserved can I impact?

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KBLX 102.9 Nonprofit Weekend Tip! What are 501c4 Organizations?

What are 501(c)(4)
 
501(c)(4) organizations are “civic leagues” that are organized for the purposes of “social welfare;” meaning the common good or general welfare of a community.

501(c)(4) EXPENSES are not tax deductible …except for in very rare cases

Some examples are:
Ø  Home owners’ associations,
Ø  Veterans’ organizations, and
Ø  Organizations that advocate publicly for a specific ideology or set of ideas.
 
501c4 organizations may engage in unlimited amounts of lobbying for legislation as long as such engagement relates to the exempt purpose.
They may also participate in political campaigns and elections as long as the organization’s primary activity remains the promotion of social welfare.
 
AN advantage of a 501(c)(4) organization over other political organization is that 501(c)(4)s do not have to disclose their donors at the federal level.
 
One of the best vehicle for social welfare spending is a 501(c)(4) social welfare organization, which have been around for  many, many years prior to Super PACS.
 
 


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60 second and 60 minute Education & Compliance Tidbits and Trainings to review at your leisure .... Updated Monthly

Conflict of Interest Policy - Gift Policy and Disclosure Form

GIFT POLICY AND DISCLOSURE FORM
(This policy should be used in conjunction with a Conflict of Interest Policy)
 
As part of its conflict of interest policy, “The Nonprofit Named” requires that directors, officers and employees decline to accept certain gifts, consideration or remuneration from individuals or companies that seek to do business with  “The Nonprofit Named” or are a competitor of it. This policy and disclosure form is intended to implement that prohibition on gifts.
 
Section 1.  Responsible Person is any person serving as an officer, employee or a
member of the board of directors of “The Nonprofit Named”.
 
Section 2. Family Member is a spouse, domestic partner, parent, child or spouse of
a child, or a brother, sister, or spouse of a brother or sister, of a Responsible Person.
 
Section 3. Contract or Transaction is any agreement or relationship involving the
sale or purchase of goods, services or rights of any kind, receipt of a loan
or grant, or the establishment of any other pecuniary relationship. The making of a gift to “The Nonprofit Named” is not a “contract” or “transaction.”
 
Section 4.  Prohibited gifts, gratuities and entertainment - Except as approved by the

Chairman of the Board or his designee or for gifts of a value less than $50
which could not be refused without discourtesy, no Responsible Person or
Family Member shall accept gifts, entertainment or other favors from any
person or entity which:

1. Does or seeks to do business with “The Nonprofit Named” or,
2. Does or seeks to compete with “The Nonprofit Named” or,
3. Has received, is receiving, or is seeking to receive a Contract or
Transaction with “The Nonprofit Named”.
 
 
GIFT STATEMENT
 
I certify that I have read the above policy concerning gifts, and I agree that I will not accept gifts, entertainment or other favors from any individual or entity, which would be prohibited by the above policy. Following my initial statement, I agree to provide a signed statement at the end of each calendar year certifying that I have not received any such gifts, entertainment or other favors during the preceding year.
 
 
____________________________________            ___________________
Signature                                                                     Date


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60 second and 60 minute Education & Compliance Tidbits and Trainings to review at your leisure .... Updated Monthly


 

102.9 FM Radio Nonprofit Weekend Tip! Can Nonprofit Board Members be family members?

Can Nonprofit  Board Members be family members?    

Limit Family Relationships on the Nonprofit Board of Directors

Family relationships are defined as an individual’s spouse, brothers and sisters, children , grandchildren, and spouses of  brothers, sisters and their children, and grandchildren   There is not a hard and fast I.R.S. rule excluding family 

I.R.S. suggests to new applicants that their  Boards of Directors practice family exclusion 

In a clear effort to increase transparency, the New annual IRS 990 tax form REQUIRES nonprofits to disclose business and family relationships of the Nonprofit’s governing body


Can there be any Relationships among officers, etc.?  

Answer “Yes”  

On the Nonprofit tax form 990, if there is a family or business relationship with another listed person at any time during the organization’s tax year. On the 990 form, for each family and business relationship you have to identify the persons and describe their relationships in a tax form Schedule O. It is sufficient to state “family relationship” or “business relationship” without greater detail.  

Family relationships are defined as an individual’s spouse, brothers and sisters, children, grandchildren, and spouses of brothers, sisters and their children, and grandchildren   There is not a hard and fast I.R.S. rule excluding a second or third person related by family or marriage serving on the same Nonprofit Board of Directors at the same time.

I.R.S. suggests to new applicants that they prefer non-familial Boards of Directors.  

IRS Governance Information Link:
http://www.irs.gov/pub/irs-tege/governance_practices.pdf

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KBLX 102.9 Nonprofit Weekend Tip! How many Nonprofit Board Members are required to sit on the Board?


How many members on a board?  

There is no agreement on the perfect size for a board.  

It is a good practice to have a minimum of 3 different persons serving on your Nonprofit Board at all times   But An active, involved board made up of committed people from the community is essential.  

Under California law, Less than half  of the board of directors of Nonprofit Board can be employees.  

Can you be a CEO and a Board member? Yes  

Best practice is that organizations  NOT  have any employees serve on the board  TO Avoid  confusing the issues of authority and supervision.  

KBLX 102.9 Nonprofit Weekend Tip! How are Nonprofits funded?

How do nonprofits receive funds?    

Traditionally,  the majority of  Nonprofit funds are generated from grants   Some grant funding sources are; Federal, State, County, City and from Private foundations like Kaiser, Chevron, Target, Blue Cross, Blue Shield, Kohl’s  and more  

Another Traditional fund development source is fundraising; car washes, annual events like;  concerts, luncheons, walks and more  

New ways to raise funds, creative out of the box ways, are through website sales and donations and Donor Cultivation

But Let’s Not Forget Donors, Individual contributors/Investors who believe in your vision and mission and act as ambassadors and become annual annual donors


Nonprofits can also have Trust funds and Endowment funds set up to keep on giving - By investing Trust funds and Endowment  funds and gaining interest earned dollars - Those interest dollars can be placed in fund reserves, more importantly, the interest earned dollars are not restricted and can be used in any way needed to support the Nonprofit's mission

Definition of a Charitable remainder Trust fund Nolo publication link:

http://www.nolo.com/legal-encyclopedia/charitable-trust-tax-deduction-break-29702.html

Definition of Nonprofit Endowment Funds:

"A fund that is made up of gifts and bequests that are subject to a requirement that the principal be maintained intact and invested to create a source of income for an organization. Donors may set up an endowments to fund a specific interest; and a nonprofit's governing body may set up an endowment. In any case, an endowment requires that the principal remain intact in perpetuity, or for a defined period of time, or until sufficient assets have been accumulated to achieve a designated purpose"

Link From The Merrill Lynch Center for Philanthropy & Nonprofit Management
http://www.mainecola.org/Portals/0/DOCS/Prudent%20Non%20Profit%20Investing.pdf

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KBLX 102.9 FM Radio Nonprofit Weekend Tip! What is a Quid Pro Quo Gift?

What is a Quid Pro Quo Gift? NOT SURE!!!

This is a payment a donor makes to a charity partly as a contribution and partly for goods or services received.  For example, if a donor gives a charity $200 and receives a concert ticket valued at $100, the donor has made a quid pro quo contribution and has received a gift from the charity   

For the Charity to avoid penalties -- It must tell   IRS about any Quid pro quo gifts given to a Donor   A penalty is imposed on a charity that does not make the required disclosure of a quid pro quo contribution of more than $75  

In the above example, the charitable contribution part of the payment is $100 and the Quid Pro Quo gift is $100         
 

To avoid penalties -- You must tell IRS about any Quid pro quo from a donor for goods and services received that is more than $75 in value. So in this case you will have to report the $100 concert ticket as a Quid Pro Quo gift 

Quid Pro Quo Gifts: As described above, when a donor contributes $75 or more and receives something of value in return, it is called a "quid pro quo" gift (which essentially means the donor received something in return for the donation). Read more about quid pro quo gift acknowledgments from the IRS website.


This is a payment a donor makes to a charity partly as a contribution and partly for goods or services.

A second  example, if a donor gives a charity $100 and receives a concert ticket valued at $40, the donor has made a quid pro quo contribution. In this example, the charitable contribution part of the payment is $60.There is NO required disclosure for this example.

Failure to make the required disclosure may result in a penalty to the organization.  

Penalty for Failure to Disclose A penalty is imposed on a charity that does not make the required disclosure of a quid pro quo contribution of more than $75. The penalty is $10 per contribution, not to exceed $5,000 per fundraising event or mailing. The charity can avoid the penalty if it can show that the failure was due to reasonable cause.  

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KBLX 102.9 FM Nonprofit Weekend Tip! What is a LOI?


What is a LOI?    


A LOI is A Letter of Inquiry    

Many foundations prefer or even require grant-seeking nonprofits to submit a LOI, or Letter of Inquiry, before sending a complete proposal. The LOI allows the foundation to quickly screen potential candidates for funding, making sure that they do not waste time on ill-conceived ideas or those that do not fit with the foundation's mission. For you, the nonprofit, the LOI is a way to get a invitation from the foundation to submit a complete proposal. Your goal is to get a call from the staff at the foundation, asking for more.

The LOI is the first mandatory step in a competitive grant process. It involves completion of a simple electronic form allowing grant review committees to determine if a project merits further consideration in light of available resources ad current priorities.  

Link to a Sample LOI:

https://www.library.pima.gov/grants/grantsletterinquiry.php#sample

KBLX 102.9 FM Nonprofit Weekend Tip! Nonprofit Taxable Income

Can Nonprofits Have Taxable Income?

Yes, If the income generated by your Nonprofit meets these 3 requirements it is considered Unrelated Business Income and Therefore Taxable:


  1. The income is from a Trade or Business that is outside of your Nonprofit business
  2. The income is not just a onetime source but there is frequency and continuity
  3. The income is not substantially related to furthering your Nonprofit


There are always EXCEPTIONS

Some exceptions for income that is not taxable are:

  • Income from dividends
  • Interest earned income
  • some investment income
  • royalties, certain rental income, certain income from research activities
  • gains or losses form sale of property
  • volunteer labor
  • school cafeterias and similar relationships
  • selling donated merchandise.....
  • Bingo (and it is not considered gambling)


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KBLX 102.9 FM Weekend Tip - What is UBIT (Unrelated Business Income Tax)?

What is UBIT (Unrelated Business Income Tax)?   

Nonprofit organizations are usually subject to unrelated business income tax (UBIT) on income from a trade or business which is regularly carried on and which is "unrelated" to its exempt purpose, it is critical to determine whether an activity is "related" to the organization’s exempt purpose.  

To be substantially related, the activity must "contribute importantly to the accomplishment" of the exempt purposes.   

For most Nonprofit organizations, an activity is an unrelated business (and subject to unrelated business income tax) if it meets three requirements:


  1. It is "trade or business" (go to IRS link below for definition)
  2. It is frequency and there is continuity
  3. It is "not substantially related" to furthering the Nonprofit (go to IRS link below for definition)


Exceptions;


  • Dividends
  • Interest,
  • Certain other investment income,
  • Royalties,
  • Certain rental income,
  • Certain income from research activities, and
  • Gains or losses from the disposition of property are excluded when computing unrelated business income.

In addition;

. Volunteer Labor
. School Cafeterias and similar relationships
. Selling Donated Merchandise
. Bingo 

More information on the following IRS links:



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KBLX 102.9 FM Nonprofit Weekend Tip! Can Nonprofits be Landlords?

Can Nonprofits be landlords?    

Rental income by itself should not jeopardize your organization’s federal 501(c)(3) charity status. 

A charity may have rental income and in some cases the income is not even subject to unrelated business income tax (“UBIT”)  


Nonprofit organizations are usually subject to unrelated business income tax (UBIT) on income from a trade or business which is regularly carried on and which is "unrelated" to its exempt purpose, it is critical to determine whether an activity is "related" to the organization’s exempt purpose.  

New York State Property Tax Exemption

Nonprofit organizations in New York State are eligible to receive exemption from New York State real estate taxes for property the organization owns and uses for exempt purposes.      

California Welfare Exemption for Property Tax

Real and personal property owned and operated by certain nonprofit organizations can be exempted from local property taxation through a program jointly administered by the Board of Equalization and county assessors' offices in California. This exemption, known as the Welfare Exemption, is available to qualifying organizations that have income- tax- exempt status under Internal Revenue Code section 501(c)(3) or 23701(d) of the Revenue and Taxation Code and are organized and operated exclusively for religious, charitable, scientific or hospital purposes.

Link to California Property Tax Welfare Exemption 2012: http://www.boe.ca.gov/proptaxes/pdf/pub149.pdf   

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KBLX 102.9 FM Radio Nonprofit Weekend Tip! What is a 501c3 Nonprofit Organization and other types of Nonprofits?

What is a 501C3 Nonprofit Organization?

501c3s are the following types of organizations:

a) Charitable
b) Educational,
c) Literary,
d) Religious,
e) Scientific,
f) Foundations

They are also:
f) Organizations Concerned with public safety ,
g) Amateur Sports
Programs OR
h) Programs established for the prevention of Cruelty


The Most Common type of Public Charity Organizations are:
Charitable hospitals, churches, medical research centers, educational institutions including schools, colleges and universities,

Other types of Nonprofit organizations that are not 501c3s are:

a) Advocacy groups --- influence the legislation or Government policies on particular issues.

b) Membership Organizations – include: Veteran’s groups, Trade Associations etc.

c) Recreational Clubs – Examples include – country clubs, sports club etc.

d) Auxiliary organizations –The parent organization may be a ‘for-profit’ or a ‘not-for-profit’ organization

e) Employee Benefit Funds - prime objective is to raise funds for employee benefits.

IRS website information:
http://search.irs.gov/search?q=types+of+nonprofits&output=xml_no_dtd&proxystylesheet=irs_portals_frontend&client=irs_portals_frontend&oe=UTF-8&ie=UTF-8&num=10&ud=1&exclude_apps=1&site=default_collection&numgm=5&requiredfields=-archive%3A1

KBLX 102.9 FM Radio Weekend Tip! What are Nonprofit Foundations & how do they benefit others?


What are nonprofit foundations and how do they benefit others?

Foundations are established to meet charitable goals by Giving  grant money to individuals and supporting  institutions

Foundations underwrite the ideas and dreams of others    

Foundations generally do not actively or directly engage in actual charitable work

Nonprofit  Foundations are listed under the Internal Revenue code  as 501C3s:

CAUTION -- Before establishing a foundation … Know in advance all government tax requirements and limitations

SECOND – Spend some time reviewing and considering existing alternatives to creating  a Foundation, -  Like;        

  • Contributing to existing Donor Advised Funds or Giving Circles that are share similar Values to your Mission       

  • Explore Creating a Charitable trust       

  •  OR Collaborate with existing organizations        

KBLX 102.9 FM Radio Weekend Tip! Nonprofit Budget Administrative Overhead/Indirect Cost/Expenses


What is Administrative overhead also known as Indirect cost   

How do I pay for my non- program expenses;   The CEO,   My administration team and   General expenses for administering program services–   Like; business permits, consultants, utilities and accounting   All of these costs can be included in your Program Grant applications as Administrative overhead or Indirect cost    

Most federal grants will require that you use a federal indirect cost rate which is annually adjusted, reviewed and approved by the federal government  

Non-federal grants accept a less complex formula as long as the formula is applied consistently for all funding sources.  

Federal Guide for indirect cost rates:
http://www.dol.gov/oasam/programs/boc/costdeterminationguide/cdg.pdf

Non-federal grant formulas
Are less complex and are usually based on a  calculation of 15% or less of every revenue source within the agency composite budget - That 15% or less is equal to and based on your defined administrative expenses.




KBLX 102.9 FM Radio Weekend Tip! Why do Nonprofit Boards have Bylaws?


What are Bylaws and why are they required?  

Nonprofit Board of Directors who adhere to, review, and revise their Bylaws are exercising good governance.

How a Nonprofit Board of Directors is governed is determined by its Bylaws.

A Nonprofit’s Board Of Directors Bylaws are considered a legal document that dictates how the organization must be governed.   

A court of law will side with your Bylaws in any dispute. 

Your bylaws should deal with only the highest level of governing issues such as:
Organizational purpose, board structure, officer position descriptions and responsibilities, terms of board service, officer/board member succession and removal, official meeting requirements, membership provisions, voting rights, conflict-of-interest policy,...  

Board members are legally accountable for following their Bylaws.   Failure by a board to follow the stipulations outlined in the bylaws can have devastating consequences.

Bylaws are not a policy and procedure manual but instead a governing guide.  

Keep your Bylaws current and relevant to reflect current realities. 

"Good governance establishes a foundation for good work"

KBLX 102.9 FM Radio - Nonprofit Weekend Tip! How do you know when your Nonprofit is in Trouble?


How do you know when your Nonprofit is in trouble?  

A host of nonprofit scandals have eroded public confidence    

Trouble begins When the majority of your Board Members do not understand financial reports and know the Bylaws that govern them   

Corporate misconduct is another problem area and it has received the greatest attention because the abuses are so wide spread and the costs so enormous.  

Many Nonprofit workplaces fail to foster a culture of integrity by Failing to Spend money wisely:  

  • Misappropriation of funds – Usually caused by funding slowdowns – inability to pay payroll taxes and retirement benefits  

  • Creative financing – when restricted funds are used to pay for unfunded expenditures i.e. A program lost its funding but the program staff are still being paid – instead of lay-offs or termination  

You must follow the law and do what is ethical.   Keep a mindset of “being lean and productive” through constant review and assessment of what is or is not working  

Nonprofits are businesses and need to be treated as such    

Implement Institutionalize ethical values in all aspects of the organization’s culture.  

In addition to your mission statement - Create a simple code of ethic statement no more than 10 words like; “We Lead with and value Integrity” post it everywhere 

PREVENTION  &  EXAMPLES!!!

http://www.hks.harvard.edu/hauser/PDF_XLS/workingpapers/workingpaper_35.pdf

http://www.loansafe.org/ceo-of-ohio-non-profit-corporation-charged-with-filing-false-tax-returns-and-mortgage-fraud

http://www.justice.gov/usao/ks/PressReleases/2012/Aug%202012/Aug22a.html


http://minnesota.cbslocal.com/2012/12/06/audit-nonprofit-director-misused-grant-money/

KBLX 102.9 FM Radio Nonprofit Weekend Tip! Nonprofits with Calendar Fiscal Years (Jan - Dec) - It's Tax season. Your 990 Tax Form is due May 15

Re-Blog -- 990 Tax form requirements for Nonprofits
 
Every year as a nonprofit, unless your revenue is less than $25,000 you are responsible for filing a tax form 990 with IRS
 
There are large penalties for not filing on time, the penalties can range from $25 - $100/day depending on your gross receipts (to a maximum of $10,000 or 5percent of its gross receipts for the year, whichever is less) 
 
All nonprofits with revenue exceeding $25,000 must file their form 990 – On the 15th day of the month, 5 months after the close of  their fiscal year. 
 
For example, if your fiscal year is;
January 1st through December 31st you must file your 990 by May 15 or
 
If your fiscal year is July 1st through June 30th you must file your 990 by November 15
 
EXTENSIONS:
You can request and be given two (2) - Three (3) month extensions for a total of  Six (6) months
 
 
The IRS 2012 (and all annual) form 990 can be found here -

KBLX 102.9 FM Radio Nonprofit Weekend Tip - Creating Nonprofit Budget Expenditure Line Items


What does the Expenditure section look like in a Nonprofit Budget?

Nonprofit budget expenditures have 2 basic components: 


  1. Payroll expenses (which are usually 60 -80 percent of most nonprofit budgets) and  
  2. Operation and maintenance expenditures



Nonprofit Budget Payroll expenses
include gross salaries plus projected merit or cost of living increases.   Nonprofit budgeted Salaries have an additional component called
Fringe Benefits -
which include the estimated expenses for;

   payroll taxes,
   worker’s compensation,
   supplemental insurance (like health insurance),
   employee benefits &
   retirement plans  

Nonprofit Budget operation and maintenance expenditures – include expenses like:

   rent,
   supplies,
   equipment, communication (phones & Internet services),
   printing and duplicating,
   advertising and marketing,
   audits and
   others expense items (depending on program and administration      needs)  

KBLX 102.9 FM Radio Weekend Tip - How to Create a Nonprofit Revenue Budget


What does the Revenue section look like in a Nonprofit Budget?

Nonprofit revenue can be defined in 3 basic ways:
  1. Carry-forward Income,
  2. Earned Income &
  3. Contributed Income:  

Carry-forward income -(dollars available beyond your annual fiscal year)  

Example:
Your fiscal year is July 1 - June 30 but the Grant year is September 1 - August 31 -- There are two (2) months remaining in the Grant year after the close of your fiscal year June 30 - Those 2 months are July and August. You only had 10 months of grant revenue used, you still have remaining two (2) months - That remaining 2 months of revenue would be considered carry-forward into your new fiscal year.

Definition of Earned Income

  • Government grants and contracts, HRSA, Ryan White, Head start,...
  • Fee for service (3rd party reimbursements i.e. Medicare, Medical & Patient fees)
  • Service contracts
  • Interest, investment income
  • Rental Income (equipment property)
  • Business income



Definition of Contributed Income

  • Fundraising dollars
  • Pledges, donations & gifts
  • Planned gift giving  like; bequests,  direct mail , phone banks, ...
  • Membership dues
  • Foundation funds
  • Corporation funds
  • Church & Civic  Group funds





KBLX 102.9 FM Radio - Nonprofit Weekend Tip! What are the components of a quality Nonprofit Budget?


What are the components of a quality Nonprofit Budget?  

There are 2 essential sections: Revenue & Expenditures

1.       Revenue is by type --- Donations, grants, and other income sources…

2.       Expenditures are line item expenses and have 3 components: 

Component 1---Salaries; Salary section is in 2 parts

a.        Gross salaries

b.       Fringe benefits (payroll taxes, health benefits, retirement, worker’s compensation,..)     NEXT ·        

Component 2-----Operation and Maintenance (list of expenses) ·
       

Component 3 -----Administration Overhead also known as Indirect Cost  

See my Blog on Nonprofit Budget Templates ...

KBLX 102.9 FM Radio - How to Dissolve Your Nonprofit Corporation?


You cannot just walk away from your nonprofit –To close your Nonprofit correctly you MUST dissolve the corporation

How do you dissolve your Nonprofit?

Your Board must vote on a resolution to wind up and dissolve the corporation

You must file your final State & Federal tax returns

You must obtain the Attorney Generals approval to dispose of any assets

Finally you must submit a Final Notice of Submission of Closure to the Secretary of State and the Attorney General’s offices      


Researched information from IRS & State of California websites (verbatim):  

1.      VOTE BY NONPROFIT BOARD OR MAJORITY OF CORPORATION’S MEMBERSHIP T O DISSOLVE AND PREPARE CERTIFICATE OF ELECTION TO WIND UP AND DISSOLVE (IF APPLICABLE) AND/OR A CERTIFICATE OF DISSOLUTION    


2.      FILE FINAL STATE TAX RETURN AND VERIFY CURRENT STATUS WITH FRANCHISE TAX BOARD      However, dissolution documents cannot be filed on behalf of a suspended corporation.  

3.      OBTAIN DISSOLUTION WAIVER FROM THE ATTORNEY GENERAL ’S OFFICE BEFORE DISPOSING OF ANY REMAINING ASSETS    

A.    LETTER SIGNED BY A DIRECTOR OF THE CORPORATION, OR ITS ATTORNEY, DETAILING ALL INDIVIDUALS OR GROUPS WHO WILL BE RECEIVING THE CORPORATION’S REMAINING ASSETS.         

If no assets remain for distribution, that information must be provided in a letter. For each intended recipient, the letter must provide: 

♦ Recipient’s Full Legal Name, Address, Telephone Number; Corporate Number; and FEIN, if any 

♦ Itemized listing of assets to be distributed, by type and value

♦ Proposed date of distribution

♦ Any restrictions on the use of the assets to be distributed ♦ Recipient’s Articles of Incorporation or trust instrument  

B.    SIGNED COPY OF CERTIFICATE OF ELECTION TO WIND-UP AND DISSOLVE and/or SIGNED CERTIFICATE OF DISSOLUTION PREPARED FOR SUBMISSION TO THE SECRETARY OF STATE.

C.   COPY OF THE CORPORATION’S IRS FORM 990, FORM 990-EZ or FORM 990-PF FOR THE LAST THREE (3) ACCOUNTING PERIODS.         
If the corporation does not file one of these informational returns, it must submit financial statements showing receipts and disbursements, and a balance sheet, for the three (3) most current accounting periods, as well as financial statements for the incomplete accounting period.  

ASSETS MUST BE DISTRIBUTED IN ACCORDANCE WITH ARTICLES OF INCORPORATION AND BY-LAWS OF DISSOLVING CORPORATION, AND ARE SUBJECT TO ANY TRUST UNDER WHICH THE ASSETS ARE HELD. THE INTENDED RECIPIENT OF ASSETS MUST:

•  HAVE THE SAME IRS EXEMPTION AS STATED IN THE DISSOLUTION CLAUSE OF THE DISSOLVING CORPORATION’S ARTICLES OF INCORPORATION;  

•  BE CURRENT IN REPORTING OBLIGATIONS TO THE ATTORNEY GENERAL’S REGISTRY OF CHARITABLE TRUSTS, IF REQUIRED TO REGISTER AND REPORT.
 

D.     ENDORSED-FILED COPY OF CORPORATION’S ARTICLES OF INCORPORATION, INCLUDING ANY AMENDMENTS.    


4.      SUBMIT FINAL NOTICE OF SUBMISSION T O THE SECRETARY OF STATE’S OFFICE

5.      SUBMIT FINAL NOTICE OF SUBMISSION T O THE ATTORNEY GENERAL’S OFFICE     Mail the final dissolution packet to the Attorney General’s Office, to the attention of: the Registry of Charitable Trusts. The packet should contain:

(a) a copy of the Certificate of Dissolution endorsed (stamped) by the Secretary of State; and
(b) the final financial report for the corporation showing that all assets were distributed properly, resulting in a zero balance.  

ASSETS MUST BE DISTRIBUTED IN ACCORDANCE WITH ARTICLES OF INCORPORATION AND BY-LAWS OF DISSOLVING CORPORATION, AND ARE SUBJECT TO ANY TRUST UNDER WHICH THE ASSETS ARE HELD. THE INTENDED RECIPIENT OF ASSETS MUST:
•           HAVE THE SAME IRS EXEMPTION AS STATED IN THE DISSOLUTION CLAUSE OF THE DISSOLVING CORPORATION’S ARTICLES OF INCORPORATION;  
•                     BE CURRENT IN REPORTING OBLIGATIONS TO THE ATTORNEY GENERAL’S REGISTRY OF CHARITABLE TRUSTS, IF REQUIRED TO REGISTER AND REPORT.  

KBLX 102.9 FM Radio Weekend Tip! Can Mergers occur in the Nonprofit world?

Nonprofit Mergers


Mergers can occur in the nonprofit world.  Nonprofits can merge programs and entire organizations with other like nonprofits

The questions are simple; is the nonprofit a good fit, can you expand your mission and services in the areas you have defined, do you share a mission and vision, are your boards going to be strengthened, will your funding expand, can you protect your reputation and brand & how successful can you be with staff buy-in and support?  

If so, a Nonprofit merger is worth exploring  

Researched materials and links:

http://www.burlingtonassociates.com/files/2513/4463/1037/1-Making_of_a_Nonprofit_Merger.pdf  - The Making of a Nonprofit Merger Bridging the Organizational Divide by John Emmeus Davis, Founder


Excerpt from Bridgespan’s Publication “The troubled economy has put merging with or acquiring another organization front and center on the radar for the senior managers of many struggling nonprofits. Indeed, a Bridgespan Group poll of nonprofit executive directors found that 20 percent of 117 respondents stated that mergers could play a role in how they respond to the economic downturn. These leaders may consider mergers and acquisitions (M&A) re-actively, as a way to shore up finances, to make their organizations appear more attractive to funders or to address a succession vacuum. But the time is also ripe for the leaders of healthy organizations to consider M&A proactively—as a way to strengthen effectiveness, spread best practices, expand reach and—yes—to do all of this more cost-effectively, making best use of scarce resources. Unfortunately, few organizations or funders think of M&A in this way.” By bridgespan.org/Publications-and-Tools/Funding-Strategy/Nonprofit-Mergers-and-Acquisitions    



“Methods for classifying and defining mergers and strategic restructuring Structural realignments of nonprofit organizations are often grouped into alliances, which do not involve change to the corporate structure, or integrations, which do. They include management service organizations, joint ventures, parent/subsidiary relationships, and mergers. For purposes of this research study, a merger is defined as an integration or combining of two or more separate organizations into one legal entity. Under this definition, program, administrative, and governance functions are all combined.”By Joint research project of MAP for Nonprofits and Wilder Research March 2011

KBLX 102.9 FM Radio Weekend Tip! What are MOUs and Why do Nonprofits use them?

MOUs (Memorandums of Understanding)


Memorandums of Understanding – MOUs are Nonprofit formal gentlemen agreements just shy of a formal contract MOUs are visible and responsive partnership agreements that define a joint endeavor between one or more partiesParties demonstrate administrative and management commitment MOUs have defined goals and objectives with a framework for achieving specific activities and services MOUs have Commitments by all parties to provide financial, material and labor resources to assist with the agreed upon project Why an MOU?  Because there are some agreements that can be made without requiring a formal contract and are compliant and beneficial to the spirit of partnership

Researched Definitions and links:


“It expresses a convergence of will between the parties, indicating an intended common line of action. It is often used in cases where parties either do not imply a legal commitment or in situations where the parties cannot create a legally enforceable agreement. It is a more formal alternative to a gentleman's agreement.”  


“Memorandum of Understanding identifies the common goals, responsibilities and anticipated contributions to a future project or joint endeavor. A Memorandum of Understanding does not create a legally binding obligation for either party. A Memorandum of Understanding may be used to clarify the agreement of parties on certain aspects of a project while negotiations continue in regards to the remaining terms of the agreement. It is the anticipation that the parties will work to finalize negotiations and complete a Contract or Agreement which will then become binding upon the parties. This Memorandum of Understanding identifies the project being completed, the services each party will provide and the financial, material and labor contributions.” https://www.rocketlawyer.com/secure/interview/new.aspx?id=1708&utm_source=103&try=1&v=3&gclid=CMv5jK_s_bQCFUdxQgodzX8A9g#q1    


“A Memorandum of Understanding (MOU) is a document that describes or provides a framework for a potential agreement between two or more parties. This Memorandum of Understanding can be used to provide a successful framework for future undertakings between two or more parties.” http://premium.docstoc.com/doccomplete?docId=130399721&pr=t&utm_source=google&utm_medium=cpc&utm_term=Memorandums%20of%20understanding&utm_campaign=completion_pre&gclid=COeN4LPt_bQCFSXZQgodDF0Akg#   Sample MOU - http://www.ovw.usdoj.gov/docs/sample-mou.pdf  



KBLX 102.9 FM Weekend Nonprofit Tip! When to choose a Single Audit or External CPA firm Expert Opinion


NONProfits are sometimes required to have formal outside audits?

Audits  build donor confidence and increase protection against fraud.

If you have $500,000 or more a year in Federal grant expenses – You are required to have  an outside audit -  ‘ a single audit' to test for compliance  

States have varying audit threshold requirements – You must contact the state you receive grant dollars from to obtain their audit requirements  

Many foundation funders ask for an annual audit as a condition of funding.

A Nonprofit may elect to have an external CPA firm provide an Expert Written Opinion  Rather than a full-blown audit    

Looking for Great Nonprofit Stories "Nonprofits Making a Big Difference Today, Despite the Odds" - Please write me!!

 

KBLX 102.9 FM Radio Nonprofit Weekend Tip! Collaborations-Working Together!

Back full circle the term Collaboration
 
 
Rapid growth in the number of nonprofits across the country and the limited number of resources to support them forces the necessity for collaborations. 
 
The most important tool nonprofits can utilize today is -- Collaboration 
 
While many nonprofits are tired of hearing funders talk about partnership and collaboration.  In this day and age, with this economic climate, you can't afford not to collaborate.
 
Foundations  are partnering with other community foundations 
 
“When relationships are well defined - Strong collaborations are mutually beneficial ......Two or more organizations can achieve a common goal, SUSTAINABILITY
 

KBLX 102.9 FM Weekend Tip - Nonprofit Facility Purchase - Enhance Capital Campaign Strategies-Enterprise Zones/Tax Exempt Bonds

Enterprise zones and Tax-Exempt Bonds are ways for nonprofits to look at purchasing facilities:
 
California provides for special tax incentives to encourage investment in specific geographic areas targeted for economic revitalization –-- Called Enterprise Zones 
 
 
Banks or Lenders and Property Owners Leasing to nonprofits in Enterprise Zones -- Receive net interest deductions
 
Creating incentives for both Lenders and Owners to work with nonprofits 
 
Tax-exempt bonds are similar to conventional loans but are costly to set up.
 
Interest income earned is exempt from state and local taxes which allow the lender to pass savings to the nonprofit borrower in the form of lower interest rates.
 
 
TAX NEWS FROM THE CALIFORNIA FRANCHISE TAX BOARD
 
California provides for special tax incentives to encourage investment in specific geographic areas targeted for economic revitalizing called Enterprise Zones within the state. One of these incentives is the net interest deduction. It is available to banks and other lenders. The requirements are simple. If a bank or lender makes a qualified loan to a qualified debtor, it is allowed to deduct the net interest received from such loan against its California taxable income.To be a qualified transaction, the loan must be made to a debtor that is engaged in a “trade or business” in an Enterprise Zone. The term “trade or business” is generally defined for tax purposes as “an activity engaged in forprofit.” When a bank or lender makes an otherwise qualified loan to a nonprofit organization, the question arises as to whether a nonprofit is engaged in a trade or business, and thus considered to be a qualified debtor for the purposes of the net interest deduction.
 
In the past, we disallowed debts made to nonprofit organizations based on the general presumption that nonprofit organizations are not engaged in a trade or business as defined under various tax provisions in the Internal Revenue Code and the California Revenue and Taxation Code.
 
However, California recently revised this policy based on statutory authority in the California Corporation Code that suggests a nonprofit could be recognized as being engaged in a trade or business. The California Corporation Code which governs nonprofit entities affirms the nonprofit’s right to “carry on a business at a profit,”and use that profit for any lawful activity.” Many nonprofit organizations accept donations, conduct fundraising activities, or charge fees. This revenue is used to sustain the organization, pay salaries, interest, fund capital improvements, expansions, etc. These activities are similar to a trade or business engaged to earn a profit.
 
Therefore,qualified loans made to nonprofit organizations can qualify for the Enterprise Zone net interest deduction if the debtor meets all the other required qualifications.
 
Tax-Exempt Bonds
Tax-exempt, industrial-revenue bond (IRB) programs are attractive financing options for small manufacturers looking to expand operations and upgrade facilities.What is a Tax-Exempt Bond?Tax-exempt bonds are debt securities issued by a state or local government development agency on behalf of a private business. Once issued,tax-exempt bonds are sold in the open market or purchased by investors or financial institutions. Interest income earned by the bond purchaser is exempt from state and local taxes, which allows the lender to pass savings to the borrower in the form of lower interest rates.Tax-exempt bonds are similar to conventional loans.
 
Bonds are not grants. Borrowers have to pay back the bond’s principal plus interest to the bond. Applicants have to demonstrate a strong business plan and project proposal, credit worthiness and strong financial statements. In addition,borrowers have to demonstrate how proposed projects will create jobs and positively impact the local economy. Unlike conventional loans, tax-exempt bonds typically offer longer-term financing at considerably lower rates than conventional financing allows.Tax-exempt bonds are not for modest projects. Typically dollars, but smaller, mini-bonds may be issued. In addition, the costs associated with tax-exempt bonds tend to be much higher than conventional loans because the business has to pay its own legal costs.
 
Carefully consider, bonds are intended to fund projects over a million r your financing needs and your ability to pay tens of thousands of dollars in legal fees before jumping into tax-exemptbonds.What are the Eligibility Requirements? Tax-exempt bonds are intended to create jobs and improve economic conditions in local areas. Businesses eligible for tax-exempt bonds include manufacturing businesses and non-profit organizations. Tax-exempt bonds of up to $10 million can be issued to finance up to 100% of an eligible project.
 
Eligible users of the funds include expanding facilities and purchasing new machinery and equipment.
 
Tax-exempt, RIB funds may not be used to refinance existing debt or for venture and working capital.
 
Other special conditions and terms may vary depending on where your business is located.What is the Application Process? Application requirements and processes vary by state and locality.
 
Contact your state or local economic development agency to obtain information about available tax-exempt bonds.
 
 
Where Can I Read Success Stories? Tax-exempt bonds have been used to successfully expand small businesses and create jobs in communities across the country. Here are some examples:
 
 

KBLX 102.9 FM Radio - Essential Nonprofit Insurances

Essential Nonprofit Insurances
KBLX 102.9 FM Radio Nonprofit Weekend Tip
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There are specific Insurances that all Nonprofits should have – some more important than others:
 
 
General Liability Insurance – which protects from slip and falls
 
 
Property Insurance – whether the nonprofit rents or owns – to protect the property against fire, vandalism, earthquake and more
 
Auto liability Insurance – covers you or your staff while carrying out the organizations business while driving their car or the agency's car
 
 
Product liability Insurance – if the nonprofit sells products to the public
 
 
Directors and Officers Insurance – to protect the Board of Directors
 
 
Professional Liability Insurance - protect against liabilities resulting from mismanagement of the organization  
 
There are Insurance companies that specifically cater to Nonprofit organizations and understand nonprofit funding concerns.
 

NEWS - Nonprofits Execs Possibly Facing Jail Time continued...

 
 
 
Twitter Tip of the Day "Compliance" continued…. - MORE ON Nonprofit Execs Facing Possible Criminal Charges In the News
 
 
 
 
Good News - Compliance creates safe walls - Understand what is required of all public corporations which include Nonprofits - Become familiar with some of the requirements outlined in many of my Blog Post ....
 
Tweet us your questions @nonprofit411 or send us an email in the "Contact Us" section
 

KBLX 102.9 FM Radio Weekend Tip - Nonprofit Fundraising

 
Nonprofit Fundraising
KBLX 102.9 FM Radio Nonprofit Weekend Tip!
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Traditional nonprofit fund raising consist of ; Individual giving,  Fundraising Events, Direct mailing (snail mail)and Grant Writing
 
Dwindling funds however require creative thinking, a paradigm shift, stepping outside the box of fund raising traditions and testing new methods of raising money
 
Today every nonprofit must expand its fund raising methods by trying new approaches ...  CASH is Critical
 
But do not over look the other very valuable resources; people skills;contractors, carpet layers, painters, mechanics, caterers, bankers and more that bring cash valued resources and their professional contacts which add value to your nonprofit. By using human resources you can put together a network of people who will provide needed resources and who will form networks to further support your organization.
 
Social media campaigns and merchandise sales are used by many nonprofits today to raise funds.  Before selling items make sure you are in compliance with Nonprofit government tax laws and you are filing the appropriate tax forms in addition to your 990.
 
 
 
 
 
“The answer is Creativity – stepping outside the box and testing new methods of raising money for your organization. Not every tactic will work for every group, so testing is key, but every charity should be constantly expanding its fund raising repertoire and testing new tactics.” 
 
·        Target smaller givers
 
·        Massive outreach using social media emphasizing smaller giving amounts (an example; the penny drives, nickel drives, dollar drives using large water cooler bottles in strategic locations where young people as well as older adults could participate … social media can be used to create the same scenario) 
 
Some Fundraising Tips found online:
 
 
 
 

KBLX 102.9 FM Radio Nonprofit Weekend Tip! Are Churches & Religious Organizations Nonprofits?

KBLX 102.9 FM Radio NonProfit Weekend Tip!
Are Churches Nonprofits?
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The IRS lists organizations that are qualified to receive
 
tax-deductible contributions in IRS Publication 78,
 
Cumulative List of Organizations Described in Section
 
170(c) of the Internal Revenue Code of 1986.
 
 
 
Automatic Exemption for Churches
 
“Churches that meet the requirements of IRC section
 
501(c)(3) are automatically considered tax exempt and
 
are not required to apply for and obtain recognition of
 
tax-exempt status from the IRS.”
 
 
 
“Contributors to a church that has been
 
recognized as tax exempt should reasonably assume that  their contributions
 
generally are tax-deductible.”
 
 
 
Churches with Parent Organizations or affiliated with or a part of a Larger Organization
 
“A church with a parent organization should contact
 
the parent organization to see if it has a group ruling. If the parent
 
holds a group ruling, then the IRS may already recognize
 
the church as tax exempt.”
 
 
 
“Under the group exemption process, the parent organization
 
becomes the holder of a group ruling that identifies other
 
affiliated churches or other affiliated organizations.”
 
 
 
 
“A church is recognized as tax exempt if it is included in a
 
 list provided by the parent organization. If the church or other affiliated
 
organization is included on such a list, it does not need to take
 
further action to obtain recognition of tax-exempt status."
 
 
 
Religious Organizations that are not Churches
 
 
 
“Religious organizations that
 
are not churches typically include nondenominational
 
ministries, interdenominational
 
and ecumenical organizations, and
 
other entities whose principal purpose is
 
the study or advancement of religion.”
 
 
 
 
 
Unlike churches, religious organizations that wish
 
to be tax exempt generally must apply to the IRS for
 
tax-exempt status unless their gross receipts do not
 
normally exceed $5,000 annually.”
 
 
 

KBLX 102.9 Host Nikki Thomas Interviewing Lenora Williams

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Lenora Williams KBLX Interview
Nikki Thomas Interview discussion with Lenora Williams on her work with Nonprofit organizations ...... August 18, 2012

 
Interview response correction:
 
Developed the West Oakland Charter School short term merger with East Coast Hyde Character Development Schools
 

KBLX Weekend Tip! Nonprofit Conflict of Interest Policy & Agreements

KBLX 102.9 FM Nonprofit Weeked Tip!
Conflict of Interest Policy & Agreements
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All Nonprofits are required to have a Conflict of Interest Policy
 
Signed Board Member & Management staff Conflict of Interest agreements
 
A Conflict of interest policy is designed to protect the financial interest of the nonprofit -  All direct business transactions that may benefit  individuals governing or executives running your nonprofit are required disclosures in their signed Conflict of Interest Agreements.
 
Auditors are required to check that Nonprofits have a Conflict of Interest Policy and signed agreements in place.
 
More info ........
IRS Instructions for Form 1023 - Additional Material on Conflict of Interest http://www.irs.gov/instructions/i1023/ar03.html
IRS Nonprofit Conflict of Interest DETAILas follows:
(Scroll down for a SUMMARY and sample “Conflict of Interest Policies”)
"Appendix A: Sample Conflict of Interest PolicyNote: Items marked Hospital insert - for hospitals that complete Schedule C are intended to be adopted by hospitals.
Article I Purpose
The purpose of the conflict of interest policy is to protect this tax-exempt organization's (Organization) interest when it is contemplating entering into a transaction or arrangement that might benefit the private interest of an officer or director of the Organization or might result in a possible excess benefit transaction. This policy is intended to supplement but not replace any applicable state and federal laws governing conflict of interest applicable to nonprofit and charitable organizations.

Article II Definitions
1. Interested PersonAny director, principal officer, or member of a committee with governing board delegated powers, who has a direct or indirect financial interest, as defined below, is an interested person.

[Hospital Insert - for hospitals that complete Schedule C
If a person is an interested person with respect to any entity in the health care system of which the organization is a part, he or she is an interested person with respect to all entities in the health care system.]
2. Financial InterestA person has a financial interest if the person has, directly or indirectly, through business, investment, or family:
a. An ownership or investment interest in any entity with which the Organization has a transaction or arrangement,
b. A compensation arrangement with the Organization or with any entity or individual with which the Organization has a transaction or arrangement, or
c. A potential ownership or investment interest in, or compensation arrangement with, any entity or individual with which the Organization is negotiating a transaction or arrangement.
Compensation includes direct and indirect remuneration as well as gifts or favors that are not insubstantial.

A financial interest is not necessarily a conflict of interest. Under Article III, Section 2, a person who has a financial interest may have a conflict of interest only if the appropriate governing board or committee decides that a conflict of interest exists.

Article III Procedures
1. Duty to Disclose
In connection with any actual or possible conflict of interest, an interested person must disclose the existence of the financial interest and be given the opportunity to disclose all material facts to the directors and members of committees with governing board delegated powers considering the proposed transaction or arrangement.
2. Determining Whether a Conflict of Interest Exists
After disclosure of the financial interest and all material facts, and after any discussion with the interested person, he/she shall leave the governing board or committee meeting while the determination of a conflict of interest is discussed and voted upon. The remaining board or committee members shall decide if a conflict of interest exists.
3. Procedures for Addressing the Conflict of Interest
a.An interested person may make a presentation at the governing board or committee meeting, but after the presentation, he/she shall leave the meeting during the discussion of, and the vote on, the transaction or arrangement involving the possible conflict of interest.
b.The chairperson of the governing board or committee shall, if appropriate, appoint a disinterested person or committee to investigate alternatives to the proposed transaction or arrangement.
c. After exercising due diligence, the governing board or committee shall determine whether the Organization can obtain with reasonable efforts a more advantageous transaction or arrangement from a person or entity that would not give rise to a conflict of interest.
d. If a more advantageous transaction or arrangement is not reasonably possible under circumstances not producing a conflict of interest, the governing board or committee shall determine by a majority vote of the disinterested directors whether the transaction or arrangement is in the Organization's best interest, for its own benefit, and whether it is fair and reasonable. In conformity with the above determination it shall make its decision as to whether to enter into the transaction or arrangement.
4. Violations of the Conflicts of Interest Policy
a. If the governing board or committee has reasonable cause to believe a member has failed to disclose actual or possible conflicts of interest, it shall inform the member of the basis for such belief and afford the member an opportunity to explain the alleged failure to disclose.
b. If, after hearing the member's response and after making further investigation as warranted by the circumstances, the governing board or committee determines the member has failed to disclose an actual or possible conflict of interest, it shall take appropriate disciplinary and corrective action.
Article IV Records of Proceedings
The minutes of the governing board and all committees with board delegated powers shall contain:
a. The names of the persons who disclosed or otherwise were found to have a financial interest in connection with an actual or possible conflict of interest, the nature of the financial interest, any action taken to determine whether a conflict of interest was present, and the governing boards or committee's decision as to whether a conflict of interest in fact existed.
b. The names of the persons who were present for discussions and votes relating to the transaction or arrangement, the content of the discussion, including any alternatives to the proposed transaction or arrangement, and a record of any votes taken in connection with the proceedings.

Article V Compensation
a. A voting member of the governing board who receives compensation, directly or indirectly, from the Organization for services is precluded from voting on matters pertaining to that member's compensation.
b.A voting member of any committee whose jurisdiction includes compensation matters and who receives compensation, directly or indirectly, from the Organization for services is precluded from voting on matters pertaining to that member's compensation.
c. No voting member of the governing board or any committee whose jurisdiction includes compensation matters and who receives compensation, directly or indirectly, from the Organization, either individually or collectively, is prohibited from providing information to any committee regarding compensation. [Hospital Insert - for hospitals that complete Schedule C

d. Physicians who receive compensation from the Organization, whether directly or indirectly or as employees or independent contractors, are precluded from membership on any committee whose jurisdiction includes compensation matters. No physician, either individually or collectively, is prohibited from providing information to any committee regarding physician compensation.]
Article VI Annual Statements
Each director, principal officer and member of a committee with governing board delegated powers shall annually sign a statement which affirms such person:
a. Has received a copy of the conflicts of interest policy,
b. Has read and understands the policy,
c. Has agreed to comply with the policy, and d. Understands the Organization is charitable and in order to maintain its federal tax exemption it must engage primarily in activities which accomplish one or more of its tax-exempt purposes.
Article VII Periodic Reviews
To ensure the Organization operates in a manner consistent with charitable purposes and does not engage in activities that could jeopardize its tax-exempt status, periodic reviews shall be conducted. The periodic reviews shall, at a minimum, include the following subjects:
a. Whether compensation arrangements and benefits are reasonable, based on competent survey information, and the result of arm's length bargaining.
b. Whether partnerships, joint ventures, and arrangements with management organizations conform to the Organization's written policies, are properly recorded, reflect reasonable investment or payments for goods and services, further charitable purposes and do not result in increment, impermissible private benefit or in an excess benefit transaction.
Article VIII Use of Outside Experts
When conducting the periodic reviews as provided for in Article VII, the Organization may, but need not, use outside advisors. If outside experts are used, their use shall not relieve the governing board of its responsibility for ensuring periodic reviews are conducted." SummaryAll nonprofits as required by the new 990 process, must have a written conflict of interest policy and a process for managing conflicts.Some Sample Conflict of Interest Policies and Implementation Process: (this information is available to you online – I and others have consolidated the information for easy access) ·

KBLX Weekend Tip! How to find out if a Nonprofit has Tax Exempt Status?

 
 
KBLX 102.9 FM Nonprofit Weekend Tip!
How to find out if a Nonprofit is Active or Inactive?
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IS THE NONPROFIT ACTIVE OR INACTIVE?
 
What is the Nonprofit's tax exempt status?
 
You can find out the active or inactive status of your Nonprofit or the status of a Nonprofit you would like to work with? 
 
IRS provides a list of approved nonprofit organizations that are qualified to receive tax-deductible contributions 
 
 
You will have to fill in………..
  • Your – EIN # 
or 
  • The legal Name of the Nonprofit as it appears in the Articles of Incorporation 
 
For additional accuracy you will be asked to complete the; City, State, and
Country the Nonprofit was started in. The more information you provide the more accurate the results. 
 
If your Nonprofit is not listed and is inactive there are ways to return you’renonprofit to an Active status.  
 

KBLX Weekend Tip - Can Nonprofits 501C3s Lobby, Impact Legislation?

KBLX Weekend Tip - Can Nonprofits 501C3s Lobby, Impact Legislation?
A small amount of Nonprofit Lobbying Activities are acceptable but  Substantial Lobbying Activity is not
 
 
In general, no organization, including a church, may qualify for NONPROFIT 501(c)(3) status if a substantial part of its activities is attempting to influence legislation  - which is commonly known as lobbying
 
 
501(c)(3)organizations may engage in some lobbying, but too much lobbying activity risks loss of tax-exempt status AND possible penalty PAYMENTs 
Political Campaign Intervention (pages 5 - 9)
Additional notes from the IRS.Gov websites:
 
 
For Churches and other religious organizations ( Pages 7-13)
 
"Measuring Lobbying ActivitySubstantial part test. Whether a church’s or religious organization’s attempts to influence legislation constitute a substantial part of its overall activities is determined on the basis of all the pertinent facts and circumstances in each case. The IRS considers a variety of factors,including the time devoted (by both compensated andvolunteer workers) and the expenditures devoted by theorganization to the activity, when determining whether the lobbying activity is substantial."  according to the IRS.Gov publication p1828 http://www.irs.gov/pub/irs-pdf/p1828.pdf
 
 
 
"A church or religious organization that conducts excessive lobbying activity in any taxable year may lose its tax-exempt status,resulting in all of its income being subject to tax." according to the IRS.Gov publication p1828

KBLX 102.9 FM radio Weekend Nonprofit Tip! What are WhistleBlowers and Do they exist in the Nonprofit world?

KBLX 102.9 FM radio Weekend Nonprofit Tip! What are whistle blowers and Do they exist in the Nonprofit world?

Weekend Nonprofit Pointers!

Who are Whistle Blowers? on KBLX 102.9 FM radio Sat, September 22 at any of the following times (central time) 9:59 am,  11:27 am, 12:26 pm or 1:25 pm.

Twitter hashtag #nonprofit411
facebook page: WilliamsLLpostnonprofitcorner

Whistle Blowers
Who are Whistle Blowers for Nonprofits?
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Nonprofits must be compliant with government laws to avoid prosecution – Since the Enron scandal the government has hired more watchdogs to protect public funds and insiders who report suspicious activity/Whistle Blowers are being heavily protected by the government. In 2004 the Nonprofit Integrity Act was enacted in the State of California, requiring that nonprofits have stronger State and federal reporting requirements. The Federal Office of the Inspector General has developed 7 elements of a strong nonprofit compliance Program

Please read my BLOG Post (on this website in the BLOG section) on the 7 elements of a strong nonprofit compliance Program

KBLX 102.9 FM radio Weekend Nonprofit Tip! Starting a Nonprofit

KBLX 102.9 FM radio Weekend Nonprofit Tip! Starting a Nonprofit

Weekend Nonprofit Pointers!

What do you need to start a Nonprofit? on KBLX 102.9 FM radio Sat, September 15 at any of the following times (central time) 10:58 am,  11:57 am, 1:29 pm or 2:58 pm.

Twitter hashtag #nonprofit411
facebook page: WilliamsLLpostnonprofitcorner

The cost for starting a nonprofit in California –
 
The costs range from approximately $500 to $1,500. 
 
What are the steps for filing?
 
You must file for a Name, your Articles of Incorporation, create an Employer Information Number, Complete a federal application Form 1023 and a State of California application form 3500. Write your Bylaws, rules for how the the Nonprofit will managed or governed.
 
How long will it take? 

Anywhere from 3 months to 1 year, if everything is completed correctly.
 
See Blog detail on "Nonprofit Start UP" for links to forms to complete and cost

KBLX Weekend Tip - Why Nonprofit Board of Directors?

Nonprofit Board of Directors

Nonprofits are not privately owned.

While the nonprofit may be your personal mission, your ideas have to be shared by others and those individuals have to help you manage your nonprofit. 

Hence the creation of a Board of Directors and odd number of multi-talented individuals who create a group that will help you push the nonprofit forward.

The selection of Board members is a critical process for your organization.  Nonprofit board members should be powerful movers and shakers in the community. They need to be in line with the agency’s vision, understand the agency’s finances and have as a mission to raise funds for the organization: For more information tweet me @nonprofit 411 or call me at (510) 469-6264

KBLX Weekend Info Tip - Saturday, 8/25 between 10 am- 2:30 pm

Check out KBLX 102.9 FM Radio for My Nonprofit Weekend Tips - This weekend's Nonprofit Info Tip,Saturday,August 25.  This Tip is on the "Integrity Act" - government filing requirements for nonprofit organizations (I talked about it last week but the spot did not air last week - read my Integrity Act Blog). You can hear the information in the morning or early afternoon, the information will stream on the KBLX website.

Check it out and let me know your thoughts;

Twitter @nonprofit411
write on my facebook page; WilliamsLLpostnonprofitcorner
email me: info@williamsLLnonprofitcorner.com
call (510) 469-6264

KBLX 102.9 FM Radio Nonprofit Info Interview Aug 18 & 19, 2012

KBLX 102.9 FM Radio Nonprofit Info Interview August 18 & 19, 2012

Download the KBLX 102.9 application for free and listen to the interview on Nonprofits on Saturday, August 18, 2012 at 5:30 AM Central Time and Sunday, August 19, 2012 at 7:30 AM Central time.

Interview with KBLX radio host Nikki Thomas on Nonprofit Start-Up, Sustainability and response to general questions. 


Send us your questions and your feedback:

  • twitter @nonprofit411
  • Like our facebook page - WilliamsLLPostNonprofitCorner
  • Make a comment on our Blogs or email us at Info@WilliamsLLnonprofitcorner.com

KBLX Weekend Tip! Bridge Loan Funding continued...

KBLX Weekend Tip! Bridge Loan Funding continued...

Bridge Loan Funding

Emergency Gap funding, Bridge Loans are available for nonprofits in need of short term lending. Bridge Loans are made on a short-term basis in anticipation of guaranteed permanent or long-term funding. They are usually loans made against contract receivables or capital campaign pledges, and they are expected to be repaid as the receivables or pledges are collected. Nonprofit bridge loans usually have low interest.

Line of Credit

It is very important while you are in good standing with your finances with your bank that you implement a Line of Credit.  Establish the Line of Credit in healthy financial times and you will be able to weather the bad times with access to the Line of Credit which acts as Bridge Loan funds.  Be sure to pay down the line of credit with unrestricted funds (see my Blog on the definition of Unrestricted funds). Renew your Line of Credit annually. Try to establish the largest amount available for the Line of Credit to allow for a good business credit rating.  CAUTION - Remember a Line of Credit is not to be used routinely. The purpose is for a “Rainy Day” but as soon as the rain stops and the sun shines, the Line of Credit needs to be restored/repaid. The Line of Credit does 2 things:  1) Creates a strong financial portfolio if used correctly and 2) Gives the nonprofit access to emergency gap funding

The Nonprofit Integrity Act of 2004

Nonprofit Integrity Act of 2004

The Nonprofit Integrity Act of 2004 signed into law by Gov Schwarzenegger became effective January 1, 2005. The Act requires nonprofits to have annual audits and creates new State and Federal annual form filing.  Scandals in the nonprofit sector received considerable media attention and prompted state and federal legislators to seek reforms like the Integrity Act to improve the accountability of directors and trustees of public funds and to strengthen the oversight of charitable organizations fundraising campaigns.

The Nonprofit Integrity Act requires nonprofits place on file with federal and state agencies the following; articles of incorporation, bylaws, Names and addresses of all directors, officers and trustees, annual accounting period, Statement of activities in California, the first date the business began,  and a Copy of the IRS determination letter. This information must be on file with the Attorney General’s Registry of Charitable Trusts.

Lenora Williams - KBLX Weekend Nonprofit Tips

Check out Lenora Williams your Nonprofit Guru on KBLX 102.9 FM radio in the Bay Area- Weekend mornings Saturday and Sunday between 7 am - 10 am bringing you tips on how to sustain healthy nonprofit organizations

Today's News Tip! How to think about going after Funders - 10 Nonprofit Funding Models

Check it out!

Found in:

Nonprofit Management Institute New Skills for a Complex World. September 11-12

Stanford Social Innovation Review -- Informing and Inspiring Leaders of social change

Great Article written By William Landes Foster, Peter Kim, & Barbara Christiansen | 27 | Spring 2009


"The models are ordered by the dominant type of funder. The first three models (Heartfelt Connector, Beneficiary Builder, and Member Motivator) are funded largely
by many individual donations. The next model (Big Bettor) is funded largely by a single person or by a few individuals or foundations. The next three models
(Public Provider, Policy Innovator, and Beneficiary Broker) are funded largely by the government. The next model (Resource Recycler) is supported largely by
corporate funding. And the last two models (Market Maker and Local Nationalizer) have a mix of funders." 

Again check out the article it has some good information. Must read!!

 The 10 funding models:

   1. HEARTFELT CONNECTOR - Some nonprofits, such as the Make-a-Wish Foundation, grow large by focusing on causes that resonate with the existing concerns .....

    2. BENEFICIARY BUILDER - Some nonprofits, such as the Cleveland Clinic, are reimbursed for services that they provide to specific individuals,
            but rely on people who have benefited in the past from these services ..........

    3. MEMBER MOTIVATOR  - There are some nonprofits, such as Saddle back Church, that rely on individual donations and use a funding model we call Member
Motivator. These individuals (who are members of the nonprofit) donate money because the issue is integral to their everyday life ....

   4.  BIG BETTOR - There are a few nonprofits, such as the Stanley Medical Research Institute, that rely on major grants from a few individuals or foundations
to fund their operations ...

    5. PUBLIC PROVIDER - Many nonprofits, such as the Success for All Foundation, work with government agencies to provide essential social services,
such as housing, human services, and education, ...

    6. POLICY INNOVATOR - Some nonprofits, such as Youth Villages, rely on government money and use a funding model we call Policy Innovator. These
nonprofits have developed novel methods ...

    7. BENEFICIARY BROKER - Some nonprofits, such as the Iowa Student Loan Liquidity Corporation, compete with one another to provide government-funded
or backed services to beneficiaries ...

    8. RESOURCE RECYCLERS - Some nonprofits, such as AmeriCares Foundation, have grown large by collecting in-kind donations from corporations and
individuals, and then distributing these donated goods to needy recipients ...

    9. MARKET MAKER - These nonprofits generate the majority of their revenues from fees or donations that are directly linked to their activities. Most
Market Makers operate in the area of health and disease, but some also operate in the environmental protection ...

    10. LOCAL NATIONALIZER - Most of the money for programs is raised locally, often from individual or corporate donations and special events.
Very little of the money comes from government agencies or fees...

A good quote from the article, "As society looks to the nonprofit sector and philanthropy to solve important problems, a realistic understanding of funding models is increasingly important to realizing those aspirations."

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60 second and 60 minute Education & Compliance Tidbits and Trainings to review at your leisure .... Updated Monthly

TwitterTip of the Day continued …."Compliance" - Nonprofit Execs FacingPossible Criminal Charges In the News

Twitter Tip of the Day continued …."Compliance" - Nonprofit Execs Facing Possible

Criminal Charges In the News


Good News - Compliance creates safe walls - Understand what is required of all public corporations which include Nonprofits - Become familiar with some of the requirements outlined in many of my Blog Post ....

Tweet us your questions @nonprofit411 or send us an email in the "Contact Us" section












Twitter Tip of the Day "Compliance" - Nonprofit Execs Facing Possible Criminal Charges In the News

Twitter Tip of the Day "Compliance" - Nonprofit Execs Facing Possible Criminal Charges In the News
 
 
 
Good News - Compliance creates safe walls - Understand what is required of all public corporations which include Nonprofits - Become familiar with some of the requirements outlined in many of my Blog Post ....
 
 
Tweet us your questions @nonprofit411 or send us an email in the "Contact Us" section 

Whistle Blower Nonprofit Info

 
Whistle Blower Nonprofit Information 
 
Whistle Blower Protection: 
 
In keeping with the policy of maintaining the highest standards of conduct and ethics, NONPROFITS will investigate any suspected fraudulent or dishonest use or misuse of NONPROFITS’s resources or property by staff, board members,consultants, or volunteers.
 
Staff,board members, consultants, and volunteers are encouraged to report suspected fraudulent or dishonest conduct (i.e., to act as “whistleblower”), pursuant to the procedures set forth below.
 
Reporting
 
A person’s concerns about possible fraudulent or dishonest use or misuse of resources or property should be reported to his or her supervisor or, if suspected by a volunteer, to the staff member supporting the volunteer’s work immediately upon discovery of the facts giving rise to the individual’s concern. If, for any reason, a person finds it difficult to report his or her concerns to a supervisor or staff member supporting the volunteer’s work, the person should report the concerns directly to the CEO/President/Executive Director or designee. Alternately, to facilitate reporting of suspected violations where the reporter wishes to remain anonymous, a written statement may be submitted to one of the individuals listed above.
 
Anyone reporting a concern must act in good faith and have reasonable grounds for believing the information disclosed indicates significant fraudulent or dishonest conduct, as defined below. Allegations that are knowingly false or made with reckless disregard for their truth or falsity, that prove to be unsubstantiated, and that prove to have been made maliciously, recklessly, or with the foreknowledge that the allegations are false, will be viewed as serious disciplinary offense and may result in discipline, up to and including termination of employment or voluntary services.
 
Definitions
 
Baseless Allegations
 
Allegations made with reckless disregard for their truth or falsity. Individuals making such allegations may be subject to disciplinary action by NONPROFITS, and/or legal claims by individuals accused of such conduct.
 
Fraudulent or dishonest Conduct
 
A deliberate act or failure to act with the intention of obtaining an unauthorized benefit - Examples of such conduct include, but are not limited to:
 
.Forgery or alteration of documents
 
.Unauthorized alteration or manipulation of computer files
 
.Fraudulent financial reporting
 
.Pursuit of a benefit or advantage in violation of NONPROFITS’s "Conflict of Interest Policy"
 
.Misappropriation or misuse of NONPROFITS resources, such as funds, supplies, or other assets
 
.Authorizing or receiving compensation for goods not received or services not performed
 
.Authorizing or receiving compensation for hours not worked
 
 
 
Whistle blower
 
An employee, consultant, or volunteer who informs a supervisor or the CEO/President/executive director about an activity relating to NONPROFITS which that person believes to be fraudulent or dishonest. 
 
 
 
 Rights and Responsibilities
 
Supervisors
 
Supervisors are required to report suspected fraudulent or dishonest conduct to the CEO/President/executive director or designee. Reasonable care should be taken in dealing with suspected misconduct to avoid
 
.Baseless allegations
 
.Premature notice to persons suspected of misconduct and/or disclosure of suspected misconduct to others not involved with the investigation
 
.Violations of a person’s rights under law
 
Due to the important yet sensitive nature of the suspected violations, effective professional follow-up is critical. Supervisors, while appropriately concerned about “getting to the bottom” of such issues, should not in any circumstances perform any investigative or other follow-up steps on their own. Accordingly, supervisor who becomes aware of suspected misconduct
 
. Should not contact the person suspected to further investigate the matter or demand restitution
 
. Should not discuss the case with attorneys, the media, or anyone other than the CEO/President/executive director
 
. Should confer with appropriate personnel before contacting law enforcement.
 
Investigation
 
All relevant matters, including suspected but unproved matters, will be reviewed and analyzed, with documentation of the receipt, retention, investigation, and treatment of the complaint. Appropriate corrective action will be taken, if necessary, and findings will be communicated to the reporting person and his or her supervisor. Investigations may warrant investigation by independent persons such as auditors and/or attorneys.
 
 
 
Whistle Blower Protection
 
NONPROFITS will protect whistle blowers as defined below:
 
. All nonprofits must prohibit retaliation against any employee or volunteer who, in good faith,reports a concern or participates in an investigation pursuant to this policy. all nonprofits must use their best efforts to protect whistle blowers against retaliation. Whistle blowing complaints will be handled with sensitivity,discretion, and confidentiality to the extent allowed by the circumstances and the law. Generally, this means that whistle blower complaints will only be shared with those who have a need to know so that
 
nonprofits can conduct an effective investigation; determine what action to take based on the results of any such investigation, and in appropriate cases, with law enforcement personnel. (Should disciplinary or legal action be taken against a person or persons as a result of a whistle blower complaint, such persons may also have the right to know the identity of the whistle blower.)
 
.Employees, consultants, and volunteers of NONPROFITS may not retaliate against a whistle blower for informing management about an activity which that person believes to be fraudulent or dishonest with the intent or effect of adversely affecting the terms or conditions of the whistleblower’s employment, including but not limited to, threats of physical harm, loss of job, punitive work assignments, or impact on salary or fees. Whistle blowers who believe that they have been retaliated against may file a written complaint with the CEO/President/executive director. Any complaint of retaliation will be promptly investigated and appropriate corrective measures taken if allegations of retaliation are substantiated. This protection from retaliation is not intended to prohibit supervisors from taking action, including disciplinary action, in the usual scope of their duties and based on valid performance-related factors.
 
.Whistle blowers must be cautious to avoid baseless allegations