Personal vs. Organizational Activity
Download: Nonprofit Law Podcast #12 (mp3, 6:36)
Shownotes
Intro
Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
Email the show
When is a person acting on their own versus acting on behalf of their organization?
- Joining a nonprofit as a director or a staff member doesn't take away your individual rights
- Individuals can do things that are otherwise forbidden... donate time/money to campaign, etc.
- General rule - so long as an organization's financial resources, facilities, or staff are not used, the organization is not going to be beholden to the individual acts of its staff, officers or directors
When do the actions become attributed to an organization?
- Principles of agency are used... if the person acts as if they have power, and they actually do have the power, the IRS will usually consider the action that of the organization
- Actions of individuals that weren't ok'd by the group, but were later "implicitly ratified." (i.e. Organization found out about the actions and did not disavow them)
Tips & Best practices
- Have a policy in place on use of organizational resources
- Encourage use of disclaimers for individuals working on non-organizational endeavors (i.e. "organization shown for identification purposes only")
Resources
Election Year Issues (pp. 363-365) - IRS CPE Text
Election Year Activities for Section 501(c)(3) Organizations: Frequently Asked Questions - McDermott Will & Emery
Closing
Email me with questions and suggested topics
AP audio & handbook on using the Internet, podcasting and social networking for your nonprofit coming later this summer
Need more than a podcast? Tim-Mooney.com
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.
Friday, August 31, 2007
Sunday, August 26, 2007
Nonprofit Law Podcast #11: Fiscal sponsors
Fiscal sponsors
Download: Nonprofit Law Podcast #11 (mp3, 6:27)
Shownotes
Intro
Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
Email the show
Fiscal Sponsors
501(c)(3)s that take a new project under its wing to offer tax advantages to the project
Typical route for startup nonprofits
Funds are given to the existing 501(c)(3) for it to control
Agreements in place to ensure the funds that come to the fiscal sponsor are spent on the project
Sponsors are legally allowed to retain a small amount of money for administrative expenses incurred
Many agreements have out clauses if the project is recognized as a 501(c)(3)
Tips
Make sure you have a good agreement
If you are a sponsor, understand that this project is part of your organization
If you are the project, find a good sponsor fit
Resources
Foundation Center: Guide to Fiscal Sponsorship
Free Management Library: Basic Guide to Non-Profit Financial Management
Fiscal Sponsorship by Greg Colvin
Closing
Email me with questions and suggested topics
AP audio & handbook on using the Internet, podcasting and social networking for your nonprofit coming later this summer
Need more than a podcast? Tim-Mooney.com
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.
Download: Nonprofit Law Podcast #11 (mp3, 6:27)
Shownotes
Intro
Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
Email the show
Fiscal Sponsors
501(c)(3)s that take a new project under its wing to offer tax advantages to the project
Typical route for startup nonprofits
Funds are given to the existing 501(c)(3) for it to control
Agreements in place to ensure the funds that come to the fiscal sponsor are spent on the project
Sponsors are legally allowed to retain a small amount of money for administrative expenses incurred
Many agreements have out clauses if the project is recognized as a 501(c)(3)
Tips
Make sure you have a good agreement
If you are a sponsor, understand that this project is part of your organization
If you are the project, find a good sponsor fit
Resources
Foundation Center: Guide to Fiscal Sponsorship
Free Management Library: Basic Guide to Non-Profit Financial Management
Fiscal Sponsorship by Greg Colvin
Closing
Email me with questions and suggested topics
AP audio & handbook on using the Internet, podcasting and social networking for your nonprofit coming later this summer
Need more than a podcast? Tim-Mooney.com
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.
Sunday, August 19, 2007
Nonprofit Law Podcast #10: Restricted funds and lobbying
Restricted funds and lobbying
Download: Nonprofit Law Podcast #10 (mp3, 5:32)
Shownotes
Intro
Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
Email the show
Restricted funds
Government grants - can't lobby with the funds
Statutory limits - part of a charter, sometimes limits activity
Grant agreements - contractual agreements that limit use of the money
In many circumstances, the limits run with the money - if you use money from outside of that pool, you are allowed to lobby.
Example: A 501(c)(3) organization receives 40% of its funding from federal grants, and an additional 40% of its funding from private foundation grants that have a restrictive clause for lobbying as a part of the agreement. Can the organization lobby?
Answer: Yes, so long as the organization complies with the limits to lobbying as a part of its tax status.
Resources
Alliance for Justice: The Rules of the Game
Closing
Email me with questions and suggested topics
AP audio & handbook on using the Internet, podcasting and social networking for your nonprofit coming later this summer
Need more than a podcast? Tim-Mooney.com
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.
Download: Nonprofit Law Podcast #10 (mp3, 5:32)
Shownotes
Intro
Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
Email the show
Restricted funds
Government grants - can't lobby with the funds
Statutory limits - part of a charter, sometimes limits activity
Grant agreements - contractual agreements that limit use of the money
In many circumstances, the limits run with the money - if you use money from outside of that pool, you are allowed to lobby.
Example: A 501(c)(3) organization receives 40% of its funding from federal grants, and an additional 40% of its funding from private foundation grants that have a restrictive clause for lobbying as a part of the agreement. Can the organization lobby?
Answer: Yes, so long as the organization complies with the limits to lobbying as a part of its tax status.
Resources
Alliance for Justice: The Rules of the Game
Closing
Email me with questions and suggested topics
AP audio & handbook on using the Internet, podcasting and social networking for your nonprofit coming later this summer
Need more than a podcast? Tim-Mooney.com
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.
Sunday, August 12, 2007
Nonprofit Law Podcast #9: Do I need a nonprofit?
Do I need a nonprofit?
Download: Nonprofit Law Podcast #9 (mp3, 08:27)
Shownotes
Intro
Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
Email the show
Threshold question... do we need a nonprofit?
Is this a long-term project?
Do you envision this living beyond your involvement?
How big is the endeavor?
Will you be accepting money or goods from others - how much?
Do you want to work with others to make this happen?
Are you replicating the work of another nonprofit?
Resources
"Can I" vs. "Should I": Center for Nonprofit Corporations (pdf)
Closing
Email me with questions and suggested topics
AP audio & handbook on using the Internet, podcasting and social networking for your nonprofit coming later this summer
Need more than a podcast? Tim-Mooney.com
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.
Download: Nonprofit Law Podcast #9 (mp3, 08:27)
Shownotes
Intro
Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
Email the show
Threshold question... do we need a nonprofit?
Is this a long-term project?
Do you envision this living beyond your involvement?
How big is the endeavor?
Will you be accepting money or goods from others - how much?
Do you want to work with others to make this happen?
Are you replicating the work of another nonprofit?
Resources
"Can I" vs. "Should I": Center for Nonprofit Corporations (pdf)
Closing
Email me with questions and suggested topics
AP audio & handbook on using the Internet, podcasting and social networking for your nonprofit coming later this summer
Need more than a podcast? Tim-Mooney.com
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.
Sunday, August 5, 2007
Nonprofit Law Podcast #8: Calculating public support
Calculating public support
Download: Nonprofit Law Podcast #8 (mp3, 09:27)
Shownotes
Intro
Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
Email the show
"I was told there'd be no math on this exam"
- Ethan Hawke as Tom Dyer, Reality Bites
If you are a public charity, you have to show public support if you're not a church or a school.
This can be a complicated area because there are several, math-intensive ways of determining public support
MOST organizations will qualify under IRC Sec. 509(a)(1)... the 1/3 test
If after we go through this test and you determine your organization doesn't meet the 1/3 test, don't panic... you may meet it under another test, but it's time to contact a tax professional (lawyer or accountant)
Why public support?
Practically, it shows your charity gets a lot of small contributions to make up its total support. It demonstrates broad fiscal commitment from the community to your organization, and therefore makes you worthy of tax exempt status with all the benefits of a charity.
Who cares if you lose it?
You're now a private foundation... still exempt, but with more hassles
It's harder to offer tax deductibility to contributors
Your paperwork just went sky high (990PF)
No lobbying at all
Taxes on investments
The 1/3 test
Step 1 - Figure out the threshold amount. For your tax year, multiply your total support by .02 - this gives you the magic number that the IRS considers the maximum contribution that qualifies as public support.
Step 2 - add up all of the contributions you received that are LESS than that threshold amount. We'll call that qualifying support.
Step 3 - Divide qualifying support by total support. Note that any big grants or individual contributions that don't make it in the numerator are in the denominator... If the total percentage is greater than 33.3%, congratulations... you pass. If not... take a deep breath and call your tax professional. You may qualify under another test OR it might be possible to push for small donors if you are working with projected numbers in your current tax year
Other things to think about
New charities are given 4-6 years to meet the public support test
Tipping is not for waiters. It's when you get a big donation from one source that is so big that it causes your organization to fail the public support test.
Resources
Foundation Center resources
SharingLaw.net examples
IRS: Pub 557 if you're a tax masochist
Dyson Foundation on tipping
Closing
Email me with questions and suggested topics
AP audio & handbook on using the Internet, podcasting and social networking for your nonprofit coming later this summer
Need more than a podcast? Tim-Mooney.com
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.
Download: Nonprofit Law Podcast #8 (mp3, 09:27)
Shownotes
Intro
Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
Email the show
"I was told there'd be no math on this exam"
- Ethan Hawke as Tom Dyer, Reality Bites
If you are a public charity, you have to show public support if you're not a church or a school.
This can be a complicated area because there are several, math-intensive ways of determining public support
MOST organizations will qualify under IRC Sec. 509(a)(1)... the 1/3 test
If after we go through this test and you determine your organization doesn't meet the 1/3 test, don't panic... you may meet it under another test, but it's time to contact a tax professional (lawyer or accountant)
Why public support?
Practically, it shows your charity gets a lot of small contributions to make up its total support. It demonstrates broad fiscal commitment from the community to your organization, and therefore makes you worthy of tax exempt status with all the benefits of a charity.
Who cares if you lose it?
You're now a private foundation... still exempt, but with more hassles
It's harder to offer tax deductibility to contributors
Your paperwork just went sky high (990PF)
No lobbying at all
Taxes on investments
The 1/3 test
Step 1 - Figure out the threshold amount. For your tax year, multiply your total support by .02 - this gives you the magic number that the IRS considers the maximum contribution that qualifies as public support.
Step 2 - add up all of the contributions you received that are LESS than that threshold amount. We'll call that qualifying support.
Step 3 - Divide qualifying support by total support. Note that any big grants or individual contributions that don't make it in the numerator are in the denominator... If the total percentage is greater than 33.3%, congratulations... you pass. If not... take a deep breath and call your tax professional. You may qualify under another test OR it might be possible to push for small donors if you are working with projected numbers in your current tax year
Other things to think about
New charities are given 4-6 years to meet the public support test
Tipping is not for waiters. It's when you get a big donation from one source that is so big that it causes your organization to fail the public support test.
Resources
Foundation Center resources
SharingLaw.net examples
IRS: Pub 557 if you're a tax masochist
Dyson Foundation on tipping
Closing
Email me with questions and suggested topics
AP audio & handbook on using the Internet, podcasting and social networking for your nonprofit coming later this summer
Need more than a podcast? Tim-Mooney.com
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.
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