The California Center for Nonprofit Law Blog
The Dangers of Using AI for Legal Research
Artificial intelligence ("AI") can feel like a shortcut to answers—type in your question, and within seconds, you get what looks like a confident, well-researched response. But when it comes to legal matters, that speed can be dangerously misleading. AI tools…TG 25: Multiple-Parent Title-Holding Organizations – IRC Section 501(c)(25)
The Internal Revenue Service (IRS) has released the revised Technical Guide (TG) 25, which outlines the requirements for multiple-parent title-holding organizations exempt under Internal Revenue Code (IRC) Section 501(c)(25). Tax-exempt title-holding organizations, such as multiple-parent title-holding corporations and trusts, offer…TG 2: Single-Parent Title-Holding Corporations – IRC Section 501(c)(2)
The Internal Revenue Service (IRS) has issued a revised version of Technical Guide (TG) 2, which addresses the federal tax exemption qualifications for Internal Revenue Code (IRC) Section 501(c)(2) title-holding corporations. The sole purpose of a tax-exempt title-holding corporation is…Potential Penalties for Failing to Meet Charitable Registration Requirements
Most states now require charitable organizations to meet specific charitable registration requirements to solicit donations within their borders. In some cases, fundraisers your organization contracts with must also comply with certain registration requirements. Failure to comply with registration requirements, as…IRS Takes Position that Johnson Amendment is Inapplicable to Political Speech During Religious Services
Commonly known as the Johnson Amendment, a provision in Section 501 of the Internal Revenue Code (IRC) prohibits tax-exempt organizations under Section 501(c)(3) – including churches and religious organizations - from endorsing or opposing political candidates. The provision gets its…The Budget Reconciliation Bill: Implications for Charitable Organizations
H.R. 1, the federal budget reconciliation bill, has passed both the Senate and the House by a narrow margin. The so-called “One Big Beautiful Bill” is likely to result in significant changes for charitable organizations in various areas. What follows…Unexpected Costs of Charity Solicitation Registration Requirements for Charitable Organizations
State charity solicitation registration laws can result in unexpected expenses for charitable organizations, particularly if they are mounting nationwide fundraising campaigns or seeking donations in multiple states. Most states have charity solicitation laws that mandate some form of registration, along…Giving Proper Notice of Board and Member Meetings
When operating a charitable organization, administrative tasks such as providing proper notice of board and member meetings may be low on the priority list. However, failing to give appropriate notice can lead to confusion, conflict, and even legal liability. Regardless…Supreme Court Supports Catholic Charity in Tax Exemption Case
On June 5, 2025, a unanimous U.S. Supreme Court held that the state of Wisconsin impermissibly discriminated against a Catholic charitable organization based on religion when it refused to allow the organization the same exemption from state unemployment tax that…Understanding the Universal Charitable Deduction
The passage of the federal budget reconciliation bill on July 4, 2025, will soon alter charitable giving incentives. The inclusion of the universal charitable deduction, set to launch in 2026, in the legislation means that charitable organizations should begin focusing…
