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Category Archives: Nonprofit Governance & Ethics

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California Franchise Tax Board and Secretary of State Publish First Batch of Delinquent Nonprofits to be Automatically Dissolved or Surrendered.

Posted in AG, IRS, FTB, & Property Tax Proceedings, Formation & Tax Exempt Status, FTB, Nonprofit Governance & Ethics

The California Franchise Tax Board (FTB), in conjunction with the California Secretary of State, published on March 1 the first batch of approximately 5,000 nonprofit corporations that will be administratively dissolved (for California nonprofit corporations) or administratively surrendered (for foreign nonprofit corporations registered in California) exactly 60 calendar days after March 1 (which falls on… Continue Reading

System Outages Cause Delays for Filing Form 8976; IRS Offers to Help Affected Organizations

Posted in AG, IRS, FTB, & Property Tax Proceedings, Formation & Tax Exempt Status, IRS, Nonprofit Governance & Ethics, Tax Treatment of Lobbying & Political Activities, Uncategorized

The initial deadline for new self-declared 501(c)(4) organizations to notify the IRS of their existence was September 6.  However, system outages on that day, and since, caused delays that may have prevented organizations from filing on time. The IRS released a statement today promising to “work with you to ensure that you are not subjected… Continue Reading

Nonprofits: Amplify Your Voice in the November Election with these Helpful Tips

Posted in Nonprofit Governance & Ethics, Private Foundations, Public Charities, Tax Treatment of Lobbying & Political Activities, Uncategorized, Unions, Associations, Clubs & Other Tax-Exempt Organizations

Our friends at California Association of Nonprofits have some creative tips for how nonprofits can make their voices heard on Election Day, and some resources to help.  Check it out!

New Law Eases Dissolution of Inactive California Nonprofit Corporations.

Posted in AG, IRS, FTB, & Property Tax Proceedings, Formation & Tax Exempt Status, IRS, FTB & Attorney General Controversies, Nonprofit Governance & Ethics

California’s nonprofit sector is vibrant and lively.  Nonprofit entrepreneurs form new entities in California every day, with great hopes for garnering support and tackling society’s pressing problems or serving constituencies with specialized needs. Nonetheless, despite good ideas and best intentions, sometimes things just don’t work out as planned.  When that happens, nonprofit founders are stuck… Continue Reading

Proposition C Impacts Nonprofit Organizations Lobbying in San Francisco

Posted in Nonprofit Governance & Ethics, Public Charities, Tax Treatment of Lobbying & Political Activities, Unions, Associations, Clubs & Other Tax-Exempt Organizations

The City and County of San Francisco’s lobbying ordinance (Campaign and Governmental Conduct Code §§2.100-155) currently requires any person influencing local legislative or administrative actions through contacts with city officials or their staff to register with the Ethics Commission, but the ordinance provides an exemption for certain nonprofits (all 501(c)(3)s and some smaller 501(c)(4)s). The… Continue Reading

New Domain Names Available for Nonprofits

Posted in Formation & Tax Exempt Status, International Charitable Transactions & Operations, Nonprofit Governance & Ethics, Nonprofit Structures, Relationships & Transactions, Private Foundations, Public Charities

As of May 7, 2015, nongovernmental organizations that meet certain eligibility requirements can purchase two new web domains – “.ngo” and “.ong.” Public Interest Registry, the nonprofit that manages the .org web domain, launched the new domains exclusively for nonprofits, unlike the .org domain which is available to both nonprofits and for-profits.  The new domains… Continue Reading

Two New California Laws Benefiting Nonprofits

Posted in Formation & Tax Exempt Status, IRS, FTB & Attorney General Controversies, Nonprofit Governance & Ethics

Over 800 new California laws went into effect this January.  Two of them — SB 1341 and AB 2641 — directly affect nonprofit organizations, and are intended primarily to aid organizations in maintaining compliance with state regulations. SB 1341 provides an opportunity for nonprofit organizations that have neglected to file required reports with the Attorney General… Continue Reading

Embezzlement from a Charity: What to Do?

Posted in IRS, FTB & Attorney General Controversies, Nonprofit Governance & Ethics, Private Foundations, Public Charities

Theft from a charity is, fortunately, rare.  But it happens, perhaps more in tougher economic times.  From the charity’s perspective, the question is what to do when the theft is discovered.  As fiduciaries of the charity, its Board must take these situations very seriously, and carefully consider how best to protect the charity’s interests.  Every… Continue Reading

Automatic Excess Benefit Transactions

Posted in IRS, FTB & Attorney General Controversies, Nonprofit Governance & Ethics, Public Charities

Did you know that if a 501(c)(3) public charity or a 501(c)(4) social welfare organization fails to properly substantiate payments that it makes to its insiders as either compensation or reimbursement, those payments may be subject to significant excise taxes?  Under Internal Revenue Code Section 4958, the IRS may impose intermediate sanctions on any “excess… Continue Reading

Doing Right by the Projects: Fiscal Sponsorship after IHC

Posted in IRS, FTB & Attorney General Controversies, Nonprofit Governance & Ethics, Public Charities

Recent news in the nonprofit press about the reported collapse of International Humanities Center (IHC), a fiscal sponsor organization based in California, has raised real concerns in the philanthropic world.  Projects sponsored by IHC received correspondence from IHC indicating that it was unable to make disbursements in response to their check requests for money to… Continue Reading