Nonprofit Law Podcast #4: Public disclosure rules

Public disclosure rules

Download: Nonprofit Law Podcast #4 (mp3, 07:15)

Shownotes

Intro

Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
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Background

Nonprofits get preferential tax treatment
The tradeoff for that preferential tax treatment comes in a few ways… one of them is public disclosure of information

The basic rules

Public charities have to give over, upon request their tax returns from the last three years (Form 990s) and their application for recognition of exemption (Form 1023).

If someone comes in and requests in-person, you must provide these documents then and there.

If the request comes in writing, email or phone, you have 30 days to produce the documents.

You may charge reasonable copying costs… details on that in a resource I’ll mention later in the show.

There are some major exceptions to keep in mind… so pay attention to what your organization does not have to turn over upon request as much as you pay attention to what your organization is obligated to provide.

You can always give more information to the public if you want.

Tax return

- Form 990
- Any attachments, and
- All schedules,

Exception… you don’t have to turn over contributors names… you may legally black out/redact the names of contributors in Schedule B and any identifying information in Schedule B Part II.

NEVER let anyone browbeat you into providing that information. It is confidential and legally protected.

Application

- A copy of the organization’s Form 1023 (if a 501(c)(3)) or 1024 (if another 501(c) org)
- All attachments
- All supporting documents, and
- Any communications with the IRS sent about the application

Exception…. If the organization is older than July 15, 1987 and you don’t have a copy of the application, you do not need to turn it over. As of July 15, 1987 all nonprofits filing a 1023 or 1024 were required to hold onto those applications. You should have them!

Resources

AFJ - Give Me Your 990! (pdf)
IRS - Public disclosure article
Venable LLP - Public disclosure article

Closing

Email me with questions and suggested topics
AP audio & written guides coming soon
Need more than a podcast? tim-mooney.com
I look forward to bringing the information to the community
Thank you for joining me on the nonprofit law podcast… take care.
nplawcast.com

This podcast provides general information about legal topics but it is not a complete discussion of all legal issues that arise in relation to nonprofits nor is it a substitute for legal advice. This podcast does not create an attorney-client relationship. This is general legal information and the contributors make no warranties regarding the general legal information provided in this podcast , and disclaim liability for damages resulting from its use to the fullest extent permitted by the applicable law.