To qualify as a U.S. “Friends Of” affiliate of a foreign charity, U.S. law dictates how the U.S. organization must relate to its foreign affiliate. Under United States tax law, U.S. Friends of organizations must be operated independently of the foreign organizations they support.
Carter Law Group is pleased to announce that B Labs has certified us as a B Corporation, Arizona’s first!
Did you know nonprofits could be vulnerable to a nonprofit coup d’etat? We are used to hearing about hostile takeovers of for-profit companies but a
Proposition 203 authorizes a limited number of medical marijuana dispensaries to operate in Arizona but requires that they be operated on a not-for-profit basis. However, Proposition 203 does not require these not-for-profit dispensaries to apply for tax-exempt status nor are they required to incorporate.
Many boards include directors who are serving ex officio. There is widespread misunderstanding regarding the meaning of the term. Ex officio members of a board are serving on the board “by reason of their office,” rather than by being elected or appointed to the position.
I have blogged about this before, but I thought a reminder was in order. The October 15 deadline for tax-exempt organizations to file a Form
A social welfare organization is an nonprofit organization exempt under Code Section 501(c)(4). It is similar to a 501(c)(3) organization in that its income is generally exempt from tax and is subject to the same limits on private inurement and excessive payments to insiders. It is different, however, in that contributions to it are not deductible as charitable contributions and it is able to conduct unlimited lobbying activities. Section 501(c)(4) exempts:
* nonprofit civic organizations operated exclusively for the promotion of social welfare; and
* local associations of employees whose earnings are devoted to charitable, educational, or recreational purposes.
The Marc Center is a thriving, creative and innovative nonprofit that is thinking strategically about how to achieve its mission through both nonprofit and for-profit ventures that provide vocational opportunities for its clients. The Marc Center is providing vocational opportunities in the areas of food service, packaging services, mailing, filing, and other low tech vocations. During my visit, I had a delicious lunch at a Banner Health facility where a Marc Center of Mesa subsidiary is in charge of food service and even provides catering. Across the country, ventures like these are commonly referred to as double bottom line “social enterprises” because they are making money and fulfilling a social mission at the same time.
Essentially, the commensurate test requires 501(c)(3) organizations to conduct charitable activities commensurate in scope with their resources. The idea is that donors fund charities to do charitable works, not to amass a fortune with no clear plan of how the funds will be spent.
Arizona recently amended its gambling laws to make it easier for political organizations, political clubs, booster clubs, and civic clubs to hold small raffles. The
Most states require you to register your organization if you solicit donations from their residents. Many states also require registration if your organization collects substantial or ongoing donations from their residents, even if you aren’t specifically targeting donors in that state. Download our comprehensive list of each state’s requirements.
Download our free guide to learn about the many elements needed to run a successful nonprofit organization, as well as how to avoid common pitfalls and mistakes.