The California Center for Nonprofit Law Blog
TG 3-32: Foundation Classification – Type II Supporting Organizations – IRC Section 509(a)(3), Publication 6016
Charities generally prefer to be classified as public charities rather than private foundations. Whereas private foundations are subject to many restrictions, including mandatory payouts, limitations on hiring, and extensive annual filing requirements, the restrictions for public charities are much easier…
TG 3-31: Foundation Classification – Type I Supporting Organizations – IRC Section 509(a)(3), Publication 6015
Generally, charities prefer to be classified by the Internal Revenue Service (IRS) as public charities instead of private foundations. The reason behind this preference is that regulatory oversight, restrictions, and filing requirements are far stricter for private foundations than they…Gov. Newsom Vetoes Two Nonprofit Bills
Over the past year, the federal government has established major reforms to OMB Guidance for Grants and Agreements, which addresses the policies and procedures that govern federal contracts and grants available to charities. The revised OMB Uniform Guidance went into…5 Internal Control Policies that Your Charitable Organization Should Implement
All charitable organizations should have certain policies and procedures in place to protect the organization, particularly when it comes to internal control concerning financial matters. One highly recommended practice is for charitable organizations to develop and implement internal control policies,…What Charitable Organizations Need to Know about the Latest in Race-Conscious Grantmaking Litigation
Charitable organizations need to know about a recent lawsuit against the Fearless Foundation, a 501(c)(3) nonprofit organization affiliated with an Atlanta-based venture capital firm, which has raised concerns about the role of race in charitable grant programs. The Fearless Foundation…5 Things that Staff Members of Public Charities Should Know About Participating in Political Campaigns
Political campaigns can be a touchy subject for public charities, especially during election years. Charitable organizations are subject to certain restrictions on political activity if they are 501(c)(3) organizations under the Internal Revenue Code. However, individuals who head up or…New Accounting Standards for Crypto: What Charitable Organizations Need to Know
Crypto donations are an increasingly popular way for individuals to donate to charitable organizations. In fact, between 2018 and 2024, charitable organizations received an estimated $2 billion in cryptocurrency donations. Leaders of these organizations may welcome and tap into this…New IRS Supporting Organizations Technical Guides: TG 3-31, 3-32, and 3-33
The Internal Revenue Service (IRS) recently published three technical guides that address each of the three types of supporting organizations and their relationships with their supported organizations. TG-3-31 addresses Type I Supporting Organizations, TG-3-32 addresses Type II Supporting Organizations, and…10 Common Risks When Considering the Merger of Two Charities
Whether to cut costs, coordinate efforts, or avoid unnecessary duplication of services, the collaboration or merger of two charities is becoming increasingly utilized today. Nonetheless, even when a merger appears to be the best solution, it is not without risk.…A Nonprofit Director’s Right of Inspection
Directors or board members of nonprofit organizations have certain rights and responsibilities under California law, including a right of inspection. These rights ensure that directors have all the information they need to do their jobs, while their responsibilities outline the…
