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…
Nonprofits regularly use logos, taglines, and other descriptions for their organizational activities. To what extent may nonprofits trademark such information, along with their corporate name? Just exactly what is a trademark, and why is it important – particularly for legal…
As Bitcoin and other virtual currencies become increasingly popular, Section 501(c)(3) nonprofits may encounter a novel question when a donor offers to contribute Bitcoin. Should the nonprofit accept Bitcoin as a tax-deductible charitable contribution? The short answer is likely, “yes.”…
We are huge fans of Google AdWords. It gives your company short term gains and an almost instant return on investment. However, not everyone should be using AdWords. Here are 4 situations in which it is best to avoid Google…
The COVID-19 pandemic has gripped our country’s nonprofits with urgent questions about financial stability. Will donors continue giving? How can nonprofit leaders effectively reach and inspire supporters to keep charitable support coming and to keep their doors open? Perhaps more than…
A nonprofit organization that incorporates or registers to conduct business in a particular state is required to have and continuously maintain a registered agent with a physical address, or registered office, located within such state. What does a registered agent…
Starting a Section 501(c)(3) nonprofit can be quite an adventure! What legal steps are required? While the details may vary widely, the concrete steps may be best summarized as follows: (1) form a nonprofit corporation, consistent with Section 501(c)(3) requirements;…
