The question concerns nonprofits receiving income from business activities. How much income can they receive from related activities before they lose their status? Also, how much from unrelated activities before they lose their status? There are at least two scenarios, one when a nonprofit has an actual business it is running, and another where it …
Automatic Revocation – How to Have Your Tax-Exempt Status Retroactively Reinstated Organizations whose tax-exempt status was automatically revoked because they did not file required 990 series returns or notices for three consecutive years can apply for reinstatement of their tax-exempt status. In a new Revenue Procedure 2014-11, the IRS explains the four procedures an organization may …
AVOIDING THE OFAC The Office of Foreign Assets Control, and How it Affects Your Nonprofit Many nonprofit organizations have heard rumors about the “OFAC” and how one slight infringement of its rules can bring jail time or millions in fines. While the OFAC, or Office of Foreign Assets Control, is certainly not to be …
Putting formal procedures in place is always a wise decision. A Benevolence Fund is no exception. Benevolence Funds are used by churches and other nonprofits to help those in need during a financial crisis. Here are some helpful hints for maintenance and oversight. Documenting is essential for protecting your ministry and putting in place checks …
Hi, Rocky, We have a lot of groups going on mission trips around the world. I have always felt that the airfare should be a tax-deductible expense. As a CPA, would you agree? David Marmon This depends on what side of the picture we are looking at. If we are having the volunteers pay for …
When the New York Department of State rejects a purpose statement for the Certificate (Articles) of Incorporation, it usually uses the following verbiage: “The Not-for-Profit Corporation Law requires corporations to provide specific purpose(s). The purpose(s) set forth in the proposed certificate are unacceptably vague and must be clarified. Please review the following list of helpful …
What nonprofit records should be kept? Except in a few cases, the IRS does not require a special kind of record. A public charity can choose any nonprofit record keeping system, suited to its activities, that clearly shows the organization’s income and expenses. The types of activities a public charity conducts determines the type of …
Records Management Assets & Liabilities Assets are the property, such as investments, buildings and furniture an organization owns and uses in its activities. Liabilities reflect the pecuniary obligations of the organization. A public charity must keep records to verify certain information about its assets and liabilities. Records should show: -when and how the asset was …
Corporate Compliance SCAM—this subject could be important to you. For helping us bring information to you about this scam, we give credit to Sab Takahashi of Servants Prepare the Way in Brea California. We helped his organization incorporate in California and get his 501c3. Recently, he sent me an e-mail, which included the following: “Dear …
What is UBI, and why might a nonprofit need to know about UBI? UBI is income from a regularly-carried-on trade or business that is not substantially related to the organization’s exempt purpose. To generate UBI, the activity must be: A trade or business, Regularly carried on, and Not substantially related to the organization’s exempt purpose. …
Harvard lawyer, David G Marmon, is America’s #1 501c3 application lawyer. He and the 501c3 team have prepared more than 3,000 501c3 applications–100% success rate with the IRS.
