Charities and Embezzlement

The City of New York is host to many of the finest cultural productions in the world, but the cost of these events is out of reach for many people. The Healing Arts Initiative, a 501(c)(3) charity, fills that void for hundreds of thousands of the city’s poor, elderly, and disabled. But on May 6, 2016, a scandal enveloped this fine organization. An official had embezzled over $750,000 and, to cover up this fraud, had Read More

Audits and More Audits

Organization Do-Good, Inc. is a (hypothetical) California Nonprofit Public Benefit Corporation with tax exemptions in good standing from the Internal Revenue Service and the California Franchise Tax Board. The Do-Good staff and board know they’re in good standing with the IRS because they were just audited by the federal tax agency. So, that’s it …, right? They’re safe, aren’t they - at least for a while - from any Read More

A Second Way to Get Noticed by the California Attorney General

Great news! You’ve formed your nonprofit organization in California and you've just sent in your application for federal tax exemption. So you rush right out and ask for donations, right? Wrong. That’s the second way that your organization can get an invitation from the California Attorney General’s office to explain yourself. What’s the first way? Take a look back at two earlier posts. In “The Charitable Read More