California Employers in a Post Dynamex World

A recent California Supreme Court ruling has the potential to significantly impact all California employers, including nonprofit organizations. Appropriately classifying workers as either employees or as independent contractors has never been easy.  We've written about it in the past. Nonprofits and start up businesses are often tempted to simply pay those who provide services for the organization as independent Read More

CA Hospitals Want OK to Provide Less Charitable Care

Nonprofit hospitals are a large and influential part of the charitable sector as well as the overall U.S. economy.  Despite efforts, over many decades, by for-profit healthcare chains to corner the market share, nonprofit institutions still predominate. A debate has raged for years about the purpose and effect of the 501(c)(3) tax-exempt status for the nonprofit hospitals and their communities. Their operations Read More

Nonprofits & The Spending Act

If you’re confused by the seemingly endless stream of budget battles in Congress, including the most recent spending act, you're not alone.  The Congressional budget and appropriations processes are tough nuts to crack for everyone except the most seasoned legislative and political operatives. To some extent, it is an ongoing issue because funds must be authorized and appropriated for each fiscal year, but it’s Read More

The End of the Berkshire Museum Saga: Everyone Loses

Last summer, the directors of the Berkshire Museum in lovely Pittsfield, Massachusetts, abruptly announced a momentous - previously secret - decision to sell off artwork worth over $50 million. These paintings include “Shuffleton’s Barbershop” (1950), “[a]n undisputed masterpiece by Norman Rockwell [which] was donated to the museum by the artist himself in 1958.” The sell-off, according to the board, was to fix what Read More

Congress & Nonprofits: What’s Happening Now

Late last year, Congress undertook an overhaul of the federal tax code that led to the passage of the Tax Cuts and Jobs Act of 2017 (TCJA). It included provisions, directly and indirectly, affecting nonprofits. Some items on the GOP leadership’s wish list had to be omitted because of Senate rules pertaining to the budget reconciliation path chosen by them to take advantage of a 51-vote margin of victory in the upper Read More

Exempt Organizations: What’s New From the IRS

The Internal Revenue Service has recently announced substantive changes to application forms and procedures for tax-exempt status under sections 501(c)(3) and 501(c)(4) of the Internal Revenue Code. The IRS will reject applications on older - now obsolete - forms.    Form 1023 The changes to Form 1023 are fairly minor. They include revisions consistent with new IRS procedures on public-charity status and on Read More

More About Nonprofits and Labor Laws

In A Reminder to Nonprofit Employers, we discussed common fallacies that many nonprofit directors and staff believe; these mistaken ideas can and do cause their organizations (and them!) a boatload of trouble. First, many people associated with 501(c)(3)s focus only on federal tax-exemption laws and compliance with those complex rules and regulations. They are either unaware of - or ignore - other federal and Read More

Donor Seeks Return of $22.9 Million

The Nonprofit Quarterly’s Ruth McCambridge aptly sums up the most recent, high-profile, “donor wants money back” story: This is an ironic story about a $100 million charitable donation to fund … an institute for conflict-resolution research that is aimed at promoting peace…. Two years later, the parties themselves are in conflict. Twin brothers Thomas L. and Timothy R. Pearson made a gift in 2015 of $100-million to Read More

New Guidance for Nonprofits Making Corporate Changes

Many nonprofit organizations thrive year after year in the same location with the same mission, structure, activities, and operations. For others, though, large or small changes may be necessary or desirable; they and their advisors need to know if - and how - they must report these new developments to the Internal Revenue Service. For many decades, the Treasury Department and the IRS had issued confusing - and Read More

Gifts in Kind: What Nonprofits Should Know

Charitable donations come in different forms; while cash is king, other types of contributions are useful, too.  Among them are “gifts in kind,” sometimes also called “in-kind gifts” or “in-kind donations.”    Different Types of Charitable Gifts A cash contribution is, for many reasons, the preferred type of gift. It’s simple and straightforward and provides the organization with the means to buy any goods or Read More