Archive: Nonprofit

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Association Endorsements of Political Candidates

With election season in full swing, let’s briefly look at association endorsements of political candidates. 501(c)(6) associations may engage in political campaigns on behalf of or in opposition to candidates for public office provided that this intervention does not constitute the organization’s primary activity. Many associations have established political action committees or separate segregated funds […]

Note to Not-For-Profits: Don’t Ignore Sales Tax

Making assumptions when it comes to sales and use tax is ill-advised for any entity’s approach to compliance.  This is especially the case for not-for-profits.  Exemption from federal income tax can count for nothing in the sales and use tax world, and states are anything but uniform when it comes to exemptions available for not-for-profits.  […]

A Welcome Break on the Fee for 1023-EZ Application for Tax Exempt Status

Effective July 1, 2016, the application fee for filing the Form 1023EZ has been lowered to $275. The old fee was $400. That’s a savings of $125, and is a welcome relief to small nonprofits applying for tax exempt status. The new streamlined Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of […]

IRS Issues Guidance on Notification to Operate as a 501(c)(4) Social Welfare Organization

The IRS on July 8, 2016, issued temporary regulations describing how to communicate with the IRS if you are starting a new social welfare organization, also known as a Section 501(c)(4) organization. A new online form, Form 8976, is required to be submitted to the IRS electronically within 60 days after being established. If you […]

The New Overtime Rule and Its Impact on Nonprofits

“It is highly misleading to suggest that most nonprofits will not need to worry about the revised [overtime] rule. Nonprofit tax status has no bearing on whether an employer is required to pay its employees overtime,” states Michael Eastman, an attorney with NT Lakis in Washington, D.C. Eastman also is counsel to the Society for Human Resource […]

New Increased Overtime Threshold: Does This Help or Hurt Workers?

On May 18, 2016 the Obama Administration put in place a new threshold for full-time salaried employees to be eligible for overtime to $47,476, which is more than twice as much as the current threshold of $23,600 and will be effective December 1, 2016. The premise behind increasing this threshold is that low to middle […]
May 31, 2016
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The Changing Face of Bequest Demographics

One of the more interesting studies I have seen in recent years was one done by Russell N James III, J.D., Ph.D.  who currently is a professor at Texas Tech University in Lubbock. He did a thorough study on American Charitable Bequest Demographics (1992-2012) using primarily information from the Health and Retirement Study (HRS) sponsored […]

Will the Trend of Awarding Grants Above the 5% Minimum Catch On?

According to the Non Profit Quarterly, the Patricia Kind Family Foundation and the Untours Foundation are asking other foundations to award grants above the 5% minimum, in order to sustain their tax-exempt status, in an attempt to create a trend of foundations utilizing more of their assets towards making a positive social impact rather than […]

Nonprofits Sued for Return of $2.1 Million in Donations

More than two dozen local, state and national nonprofit agencies are being sued for the return of $2.1 million in donations in a Waco, Texas based lawsuit. A trustee for Life Partners Holdings claims the donations were made by the CEO from funds he fraudulently received from the company before it filed for bankruptcy last […]

Nonprofit Endowments Under Scrutiny

A question that has been asked with some regularity over a long span of time is –”When will the size of our endowment attract the interest of the IRS?” or “Is there a point at which our tax-exempt status may be threatened?” Although the issue has come up occasionally there is no current limit on […]