Boards are fundamental to the governance of a nonprofit corporation. However, many misconceptions exist about their function and the duties and responsibilities of board members. As a result, nonprofits may need help properly defining the role of a board member…

Charitable organizations regularly engage in significant fundraising, as it often takes money to achieve their exempt purposes. However, fundraising generates various tax concerns, such as the deductibility of contributions to charitable organizations and whether fundraising activities trigger tax liabilities. Here…

A new state law passed in response to widespread homelessness will make it easier for religious institutions and nonprofit colleges to convert surplus land they own into low-income housing. SB 4 added Section 65913.16 to the California Government Code, titled…

The federal Office of Management and Budget (OMB) has issued major changes to its Uniform Guidance, which is the set of rules for most grantmaking to charitable nonprofits and state, local, and Tribal governments. These changes will go into effect…

Earlier this year, the U.S. Department of Labor (DOL) issued a final rule representing the most substantial increase in the federal overtime salary threshold in decades. Under the final rule, millions of Americans recently became eligible for overtime pay, and…

The U.S. Court of Appeals for the Fourth Circuit has held that an independent school’s 501(c)(3) tax-exempt status alone does not make that school a recipient of federal financial assistance. Therefore, the school was not subject to additional federal laws…

In 2014, the Internal Revenue Service (IRS) introduced IRS Form 1023-EZ. The purpose of this form was to streamline and simplify the process of establishing a tax-exempt organization under §501(c)(3). However, at least one tax consultant has determined that the…

Assembly Bill 488 (AB 488), a California law effective on January 1, 2023, governs charitable organizations that receive donations through charitable fundraising platforms and platform charities. The law imposes certain requirements that charitable organizations must meet to remain in “good…

As our country's election draws near, 501(c)(3) organizations must follow the rules governing their tax-exempt status, including those related to political activities. While some charitable organizations may wish to engage in nonpartisan activities, they must be cautious about activities that…

Public charities are tax-exempt organizations as long as they operate for charitable or other beneficial purposes. However, public charities that engage in income-producing activities unrelated to their exempt purpose(s) are subject to federal taxes on any income they produce from…