Breach of Fiduciary Duty by Ogling the Doughnuts

Admit it. You’ve done it. The corporate secretary is asking for approval of the minutes from the last meeting. But you’re busy deciding between the maple-glazed doughnuts and the chocolate-topped ones. So is everyone else around the conference table. Nonprofit Minutes: One More Worry Sometime later, your organization gets an audit notice from the IRS. What do you think the agent will want to see? Financial records? Read More

Your Advisory Board: Welcome Them in Writing

In “Is it Advisable to Have an Advisory Board,” we introduced the topic of advisory boards: what they are and what they (should) do. We also suggested that - sometimes - an advisory board isn’t a very good idea at all. We recommended that an organization think carefully and consider various alternatives to establishing an advisory board. But if it “makes sense to go the advisory board route,” the group should Read More

Back to the Wild West of Social Media: Who Owns the Accounts?

There’s a good reason why even social media experts describe this phenomenon as an “untamed wild west.” Social media is a new form of communication relayed across cutting-edge technological platforms. And the power to communicate has become more democratic: individuals, rather than just big organizations, have access to the medium as well as the message. Nonprofits - along with businesses and government - are Read More

Is the Form 1023EZ Too Easy?: Part III – The Applicant’s Decision

It hasn’t exactly been smooth sailing recently for the IRS and its Exempt Organizations Division. What with Congressional subpoenas, lost emails, and gloomy tea parties, these federal charity regulators have been taking hits on several fronts. That may be one of the reasons why the beleaguered agency made the decision to go ahead with a flawed and imperfect plan to address the problem of huge delays in approval time Read More

Is the New Form 1023EZ Too Easy? Part II – What the Experts Think

“It’s easier to get tax-exempt status under Form 1023EZ than it is to get a library card,” says Tim Delaney,  the President and CEO of the Council of Nonprofits about the new exemption-application alternative for smaller organizations. While that may be a bit of an overstatement, there’s no question that the 3-page Streamlined Application for Exemption from Tax under Section 501(c)(3) of the Internal Revenue Code is Read More

Is the New Form 1023EZ Too Easy? Part I – Introduction

Unless your organization is fairly new, you may not be aware that the IRS Exempt Organizations Division has been grappling with a huge problem. No.  Not the one about lost emails, and Congressional subpoenas, and social welfare organizations’ political activities. This one’s about the absurdly long time it’s been taking for the beleaguered agency to approve Section 501(c)(3) tax exemptions. For several years, the Read More

"It Seemed like a Good Idea at the Time."

In “Next Time, Let’s Just Text in our Votes,” the fictional charity board members were looking for a way to avoid the time, expense, and inconvenience of monthly board meetings. “Why don’t we just put a few issues on an agenda,” one of them suggested, “email it out, circulate it online for comments and questions, and then vote by text message?” Although a shortcut like this may be a widespread practice, it’s not Read More

Drafting A Social Media Policy Manual: How Hard Can It Possibly Be?

Social media has been described as a “Wild West” that nonprofits must “tame.”  That should be your first clue. The rules and regulations governing nonprofits were complicated enough before the era of online networking.  If  an organization isn’t allowed to do something in the real world, it certainly can’t do it in the virtual world.  There are just so many more ways on the digital superhighway to take a catastrophic Read More

Who is Robert and Should Nonprofits Follow His Rules Of Order?

There’s a quick answer to the second question: Sometimes yes and sometimes no. There are pros and cons. How’s that for a lawyerly response? Professional parliamentarians love Robert’s Rules of Order, but many nonprofit experts are wary: "We have said it before and we will say it again: Most organizations should avoid Robert’s Rules of Order like the plague. . ." Back to the Beginning: Who is Robert? In 1863, U.S. Read More

One of those Days . . .

It was the Monday morning after a hugely successful weekend fundraiser. The executive director of the nonprofit drug-recovery facility arrived early at her office -- eager to start implementing new programs now possible because of the generosity of donors. Her mood changed abruptly, though, when a prominent local attorney called. A volunteer from the gala’s steering committee had taken it upon himself to post event Read More