When should a nonprofit establish – and maintain – an endowment? The term “endowment” typically refers to funds set aside, either internally within a nonprofit or externally through a separately-created entity for the charity’s benefit. Whether internally maintained or separately developed,…
Is your nonprofit at risk for fraudulent financial activity? Nonprofit organizations tend to be more trusting of their employees, have less resources devoted to administrative costs, and have less stringent financial controls than for-profit organizations. They are more likely to be victims…
Corporate mergers and their legal kin, namely asset transfers and consolidations, sound like business concepts, but they bear enormous potential significance for nonprofit organizations. Nonprofits can use these corporate transitions as powerful strategic options for combining and leveraging shared visions…
For ongoing nonprofit legal compliance, what annual reports need to be filed? Three key types of reports may be required, depending on the specific state involved and the nonprofit’s particular activities: (1) IRS – a version of the IRS Form…
What happens when a person is injured in connection with a nonprofit’s activities? Two correct answers are (1) care should be given to the injured person; and (2) an incident report should be completed. Additional answers may include mandated reporting…
“Can we get sales tax exemption?” Wagenmaker & Oberly, LLC law firm’s State Compliance and Tax Practice Group handles this question on a regular basis, usually for a specific state and increasingly with an eye toward online activity and multi-state…
Innovative nonprofit leaders frequently leverage so-called “multicorporate structures” to achieve multiple beneficial objectives. May nonprofit corporations do so, such as through forming subsidiaries? If so, when, and why? What are the liability and tax implications? This article describes legal aspects…
Many nonprofits use employee handbooks to serve the valuable function of providing their employees with advance notice of work expectations, applicable requirements, and other responsibilities for a productive and mutually beneficial relationship. Such goals may likewise apply to volunteers serving…
It is indeed a joyful day when a nonprofit receives the anticipated IRS determination letter, recognizing its tax-exempt status. But note: such status is under federal law and only for income tax liability generally. What state tax considerations exist? A minority of states impose additional…
All nonprofits should maintain confidentiality of medical information related to their employees, program participants, and volunteers. Is such information subject to “HIPAA?” For many organizations, the answer is no – HIPAA does not apply across the board to all medical…
