The California Center for Nonprofit Law Blog

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…

Sen. James Lankford (R-OK) introduced S.566 – Charitable Act (“the Act”) in February 2023. Rep. Blake D. Moore (R-UT-1) introduced the House companion bill, H.R. 3435, in May 2023. Although the Act is a popular bipartisan bill, they have gained…

Assembly Bill 488 (“the law”), which regulates online charitable fundraising platforms and platform charities and places them under the control of the California Attorney General, went into effect on January 1, 2023. Since then, the Attorney General has released three…

Some Congressional leaders appear to be questioning the impact of the Johnson Amendment on national elections. A provision in Section 501(c)(3) of the Internal Revenue Code (IRC), which is commonly called the Johnson Amendment, has preserved the nonpartisan nature of…

Charitable organizations receiving tax-deductible charitable contributions must comply with all federal tax laws. One provision of the Internal Revenue Code (IRC) central to charitable contributions is the requirement that donors provide a specific and contemporaneous written acknowledgment of some charitable…

The Internal Revenue Service (IRS) recently issued Revenue Procedure 2024-5, which addresses the process by which organizations with tax-exempt status under Section 501(c)(3) can seek recognition by the IRS under a different paragraph of Section 501(c). The Internal Revenue Service…