Nonprofit Law Matters

Category Archives: Revenue Generating Activities

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New Year, New Ventures: Keeping Up With Charitable Sales Promotions

Posted in IRS, FTB & Attorney General Controversies, Public Charities, Revenue Generating Activities

Readers may remember our blog post from 2012, Are You in a Commercial Co-Venture?, in which we described common scenarios that trigger state requirements for charities and companies engaged in commercial co-ventures (also known as charitable sales promotions, or cause marketing).  Over the years, we have seen the popularity of such ventures continue to rise,… Continue Reading

South Carolina Creates New Requirements for Commercial Co-Venturers; Deadline Tomorrow (October 4, 2014) for Commercial Co-Venturers Currently Running Solicitation Campaigns

Posted in Public Charities, Revenue Generating Activities

Earlier this year, South Carolina enacted House Bill 3367 (H. 3367), a bill aimed at addressing concerns of the community and enforcement issues with the state’s Solicitation of Charitable Funds Act (the “Act”). H. 3367 amended the Act, including adding new requirements for commercial co-venturers. As of March 13, 2014, the effective date of H…. Continue Reading

CalNonprofits Releases Report on Impact of California’s Nonprofit Sector

Posted in Grantmaking & Social Investing, Private Foundations, Public Charities, Religious Institutions, Revenue Generating Activities

On August 5, 2014, CalNonprofits, a statewide alliance of nearly 10,000 nonprofit organizations promoting the interests of California’s nonprofit sector, released a report, Causes Count: The Economic Power of California’s Nonprofit Sector, “the first report of its kind to examine the nonprofit sector’s scope, activities and economic impact” in California. If you don’t have time to… Continue Reading

Arizona, Maine, and Nevada Pass Laws affecting Charitable Solicitation Registration Requirements: Is there a trend emerging?

Posted in Public Charities, Revenue Generating Activities

With roughly 39 states and the District of Columbia having some form of charitable solicitation registration laws, a majority of states regulate charitable solicitation registration.  It is less clear, however, whether a trend is emerging for tighter or more relaxed regulation within those systems.  Lawmakers dealing with charitable solicitation registration laws often struggle to find the… Continue Reading

Nevada Establishes State Charitable Solicitation Registration Requirements

Posted in Public Charities, Revenue Generating Activities

Unlike Arizona and Maine, which recently removed certain charitable solicitation registration requirements, Nevada recently established charitable solicitation registration requirements with the enactment of AB 60.  Previously, Nevada had no charitable solicitation registration laws. Effective January 1, 2014, Nevada will require a nonprofit corporation to register with the Nevada Secretary of State before it solicits tax-deductible charitable… Continue Reading

Maine Passes an Act to Streamline the Charitable Solicitations Act

Posted in Public Charities, Revenue Generating Activities

Maine generally requires a charitable organization to become licensed with the state before it solicits, accepts, or obtains contributions in the state.  To become licensed, a charitable organization must file an initial registration form, certain other information such as copies of contracts with professional solicitors or professional fundraising counsel, and annual renewal applications that include… Continue Reading

Arizona Repeals the Charitable Solicitation Registration Requirement for Charitable Organizations

Posted in Public Charities, Revenue Generating Activities

As of September 13, 2013, charitable organizations soliciting in Arizona are no longer required to register with the Arizona Secretary of State.  Prior to this change in law, charitable organizations were required to file an initial charitable registration with the Secretary of State before soliciting their first contribution, whether through a contracted fundraiser or otherwise,… Continue Reading

IRS Recognizes Exemption for Nonprofit Community Newspaper

Posted in AG, IRS, FTB, & Property Tax Proceedings, Formation & Tax Exempt Status, Public Charities, Revenue Generating Activities

In recent years, the dramatic expansion of digital news content, and the redirection of advertising dollars away from print, has caused an equally dramatic decline in the viability of print journalism.  At the same time, the IRS has demonstrated increased skepticism about whether journalism is charitable, given the historically commercial aspect of news publication. One… Continue Reading

Lots of Colleges and Universities Have Lots of Unrelated Business Taxable Income — What About You?

Posted in Public Charities, Revenue Generating Activities

Yesterday, the IRS released its final report on its compliance project on colleges and universities.  (For those who don’t remember, this started in 2008 with questionnaires sent to 400 randomly-selected exempt colleges and universities, followed by 34 not-at-all-randomly-selected audits.)  While there were other interesting findings, I’d like to focus on the widespread and substantial underreporting of (and… Continue Reading

Applying Section 6113 Fundraising Disclosures to Modern Media: @IRS: 2 much 2 ask 4 upd8?

Posted in Revenue Generating Activities, Tax Treatment of Lobbying & Political Activities

The IRS requires that certain disclosures be made when tax-exempt entities conduct fundraising.  Section 6113 of the Internal Revenue Code provides that tax-exempt organizations, contributions to which are not tax deductible―such as political organizations, social clubs, and fraternal orders―that publish fundraising solicitations, must include in any solicitation an express and conspicuous statement that contributions are… Continue Reading

Are You in a Commercial Co-Venture?

Posted in IRS, FTB & Attorney General Controversies, Public Charities, Revenue Generating Activities

You are a charity. You are interested in raising money.  You have lots of ideas: you could hire a fundraiser; you could hire fundraising counsel; you could partner with a company that agrees to donate a portion of its profits; you could set up a donation box at the local grocery store….  Each of these… Continue Reading