Nonprofit Law Podcast

Nonprofit Law Podcast #45: Election Season

2008-10-12T14:50:00.000-07:00

Election Season

Download: Nonprofit Law Podcast #45 (mp3, 10:14)

Shownotes

Intro

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

Election season brings out the advocacy issues for nonprofits

- Some churches are about to get in a heap of trouble...
Alliance Defense Fund is trying to take on the IRS and the tax prohibition on electioneering.
It's probably going to cost some churches, but more importantly the hubris will impact the church goers
The First Amedment is alive and well, but it doesn't simultaneously create the right to tax deductibility of donations. That's a privilege.

- Campaign finance laws were thankfully overturned, and here's why...
In 2000, Congress passed McCain-Feingold, or BCRA - it contained a well-intentioned but overbroad provision that essentially banned any broadcast advertisement that mentioned anyone running for federal office within 60 days of the November elections.
The Supreme Court overturned it because it banned all ads in those windows, including ones that are purely within free speech categories - like lobbying
When I lobbied supporters and authors of this law, I was constantly asked what kind of things could possibly come up within 60 days of an election that nonprofits and other corporations would want to weigh in on?
Well... we all just experienced it - the rescue bill was firmly within the 60 day window and without the wisdom of the Court (a phrase I do not often use) an election law would have stopped organizations from weighing in on the bill via broadcast ads.
Even supporters of BCRA were uncomfortable on this point...

Resources

Election Law Blog on the BCRA 60 day windows
Action Urged Against Politicking Pastors - The Chronicle of Philanthropy

Closing
Email me with questions and suggested topics
Sign up for the free NLP newsletter... every week get an early look at the shownotes and resources sent to you by email, plus get additional free content on the laws impacting nonprofits. Go to nplawcast.com/newsletter for more info and to sign up.
Need more than the podcast? Tim-Mooney.com and Beyond the Podcast at nplawcast.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

Nonprofit Law Podcast #44: Streamlining

2008-09-21T14:08:00.000-07:00

Streamlining

Download: Nonprofit Law Podcast #44 (mp3, 5:13)

Shownotes

Intro

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

- - This podcast is dedicated to the memory of Sean May. To learn more about Sean, please visit seanmaymemorial.com. - -

One less step in organizing a nonprofit!

Straight from the IRS:

The Internal Revenue Service and the Treasury Department today issued new regulations that will streamline the approval process for organizations seeking tax-exempt status as publicly supported charities.

The new regulations do away with the so-called advance rulings that granted public charity status for an initial five-year period but required exempt organizations to demonstrate, after the initial period, that they in fact received a substantial part of their support from public sources to receive a final determination letter.

Resources

IRS Streamlines TEO Application Process - Nonprofit Law Prof Blog
IRS Streamlines Application Process for New Tax-Exempt Organizations - IRS Press Release

Closing
Email me with questions and suggested topics
Sign up for the free NLP newsletter... every week get an early look at the shownotes and resources sent to you by email, plus get additional free content on the laws impacting nonprofits. Go to nplawcast.com/newsletter for more info and to sign up.
Need more than the podcast? Tim-Mooney.com and Beyond the Podcast at nplawcast.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

Nonprofit Law Podcast #43: The Best IRS Publication Revamped

2008-08-24T07:18:00.000-07:00

The Best IRS Publication Revamped

Download: Nonprofit Law Podcast #43 (mp3, 9:11)

Shownotes

Intro

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

Craigslist Foundation Nonprofit Bootcamp
Highly recommend this great day of learning about nonprofits, including nonprofit law
Alliance for Justice session on lobbying was excellent
NYC 2008 Podcasts should be up soon - in the meantime, check out past ones
If you're in the Bay Area, I highly encourage you to attend the west coast version on October 18, 2008 in San Mateo, CA

IRS revamps Pub 1828, the Guide to Churches and Religious Organizations

IRS Publication 1828 (PDF) - Designed for religious organizations, but this guide is an excellent parallel resource for secular charities as well
Inurement and Private Benefit

- No special deals for insiders
- No charitable dollars to individuals' "private benefit"

Employment Tax

- The basic ins and outs of withholding and other issues

Payment Of Employee Business Expenses

- How to properly reimburse

Recordkeeping Requirements

- Simple rules for keeping the IRS happy if you're audited

Substantiation and Disclosure Rules for Donations

- What you have to do when you receive tax-deductible donations

A great index to other relevant IRS pubs (special note to my silver medal for best IRS pub: Publication 557)
Update reflects some of the examples and guidance from Rev. Rul. 2007-41

- Examples illustrating the application of the facts and circumstances test for campaign intervention
- If you're a non-religious org, check out the Revenue Ruling... Pub 1828 focuses on the religious org examples

Resources

IRS Publication 1828 (PDF)

Closing
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Sign up for the free NLP newsletter... every week get an early look at the shownotes and resources sent to you by email, plus get additional free content on the laws impacting nonprofits. Go to nplawcast.com/newsletter for more info and to sign up.
Need more than the podcast? Tim-Mooney.com and Beyond the Podcast at nplawcast.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

Nonprofit Law Podcast #42: Double Duty

2008-08-10T10:42:00.000-07:00

Double Duty

Download: Nonprofit Law Podcast #42 (mp3, 9:50)

Shownotes

Intro

Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
Email the show
I'll be at the Craigslist Foundation Nonprofit Bootcamp in NYC on August 16th - if you attend and see me, feel free to say hello!
Thanks to Texas Nonprofits for featuring the show on their homepage! It sparks my craving for Ironworks BBQ in Austin...

Can a staff member also serve on the board of directors?

From a listener email: keep the suggestions coming!
Some people are absolutists about this - it's an unworkable conflict of interest. Early in my career I was confronted with an ED who was convinced it was actually illegal.
In some circumstances, this may be true - check your state laws regarding conflicts of interest, but also your bylaws and conflict of interest policies
Assuming none of these things block it, serving on the board as a staff member IS possible
It's more of an issue for small, but growing nonprofits
Why? It's a route to compensate a person for their work - paid as a staff member, but still present as an unpaid board member. (wearing two hats)
Pitfall: Conflict of interest - breach of duty of loyalty (for more, go back to NLP #35)
From BoardSource: "It is probably impossible to find a board member who will never have any conflicts of interest... if these associations develop into conflicts of interest and become a major obstacle to fulfilling the duty of loyalty — one of the main legal obligations of board members — it may be necessary to re-evaluate the board member's suitability for current board service."
If it makes sense for your organization to have a person serve as a board member, have a very strict policy regarding breach of loyalty. Best practice would be an abstention policy where the board member recuses him or herself from any votes that impact staff. Another (perhaps better) policy would be to have the board member serve in an ex officio capacity (i.e. no voting power on the board, but has full authority to be present and debate all decisions).

Resources

BoardSource
How many nonprofits compensate their board members?
Is it acceptable for a board member to have a personal relationship with a staff member?
Can conflict of interest be an obstacle to board service?
How does a nonprofit safeguard against organizational conflict of interest?

Closing
Email me with questions and suggested topics
Sign up for the free NLP newsletter... every week get an early look at the shownotes and resources sent to you by email, plus get additional free content on the laws impacting nonprofits. Go to nplawcast.com/newsletter for more info and to sign up.
Need more than the podcast? Tim-Mooney.com and Beyond the Podcast at nplawcast.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

Nonprofit Law Podcast #42: Double Duty

2008-08-09T12:09:00.000-07:00

Double Duty

Download: Nonprofit Law Podcast #42 (mp3, 9:53)

Shownotes

Intro

Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
Email the show
I'll be at the Craigslist Foundation Nonprofit Bootcamp in NYC on August 16th - if you attend and see me, feel free to say hello!
Thanks to Texas Nonprofits for featuring the show on their homepage! It sparks my craving for Ironworks BBQ in Austin...

Can a staff member also serve on the board of directors?

From a listener email: keep the suggestions coming!
Some people are absolutists about this - it's an unworkable conflict of interest. Early in my career I was confronted with an ED who was convinced it was actually illegal.
In some circumstances, this may be true - check your state laws regarding conflicts of interest, but also your bylaws and conflict of interest policies
Assuming none of these things block it, serving on the board as a staff member IS possible
It's more of an issue for small, but growing nonprofits
Why? It's a route to compensate a person for their work - paid as a staff member, but still present as an unpaid board member. (wearing two hats)
Pitfall: Conflict of interest - breach of duty of loyalty (for more, go back to NLP #35)
From BoardSource: "It is probably impossible to find a board member who will never have any conflicts of interest... if these associations develop into conflicts of interest and become a major obstacle to fulfilling the duty of loyalty — one of the main legal obligations of board members — it may be necessary to re-evaluate the board member's suitability for current board service."
If it makes sense for your organization to have a person serve as a board member, have a very strict policy regarding breach of loyalty. Best practice would be an abstention policy where the board member recuses him or herself from any votes that impact staff. Another (perhaps better) policy would be to have the board member serve in an ex officio capacity (i.e. no voting power on the board, but has full authority to be present and debate all decisions).

Nonprofit Law Podcast #41: Responsibilities of Foundation Board Chairs

2008-07-27T11:00:00.001-07:00

Responsibilities of Foundation Board Chairs

Download: Nonprofit Law Podcast #41 (mp3, 8:31)

Shownotes

Intro

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

Important responsibilities for board chairs (and other board members)

1. Be Faithful to Mission
2. Guide the Grantmaking Strategy
3. Map Out the Future
4. Stay Focused on Financial Oversight and Legal Compliance
5. Master the Art of Facilitating Meetings
6. Connect the Dots Between Committees
7. Build a Board That Is Strong And Engaged
8. Communicate with the Community
9. Oversee Administrative Work
10. Assess Performance

Resources

BoardSource, Ten Essential Responsibilities of Foundation Board Chairs
Full whitepaper

Closing
Email me with questions and suggested topics
Sign up for the free NLP newsletter... every week get an early look at the shownotes and resources sent to you by email, plus get additional free content on the laws impacting nonprofits. Go to nplawcast.com/newsletter for more info and to sign up.
Need more than the podcast? Tim-Mooney.com and Beyond the Podcast at nplawcast.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

Nonprofit Law Podcast #40: Due Diligence

2008-07-12T11:27:00.000-07:00

Due Diligence

Download: Nonprofit Law Podcast #40 (mp3, 12:05)

Shownotes

Intro

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

Due Diligence for Nonprofits

Conflict of interest policy for board members, officers, and senior staff
Whistleblower policy
Document retention and destruction policy
Gift acceptance policy
Compensation policy
Parent-subordinate consistency policy
Contemporaneous documentation of meeting minutes of board and committees
Compensation and Audit committees
For grantmakers - Maintains records to substantiate the amount of the grants or assistance, the grantees’ eligibility
for the grants or assistance, and the selection criteria used to award the grants or assistance.

Resources

American Council on Education - 501(c)(3) Due Diligence (PDF)

Closing
Email me with questions and suggested topics
Sign up for the free NLP newsletter... every week get the shownotes and resources sent to you by email, plus get additional free content on the laws impacting nonprofits. Go to nplawcast.com/newsletter for more info and to sign up.
Need more than the podcast? Tim-Mooney.com and Beyond the Podcast at nplawcast.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

Nonprofit Law Podcast #39: Not Charitable Enough?

2008-06-29T10:05:00.000-07:00

Not Charitable Enough?

Download: Nonprofit Law Podcast #39 (mp3, 7:06)

Shownotes

Intro

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

Commensurate in Scope ruling

A recent private letter ruling, the IRS applied a somewhat controversial standard to reject exempt status to an organization that was a faith-based organization that also was creating tax-friendly financial plans for it's constituency.
Remember, that it is totally feasible for a charity to engage in business activities and engage in business activities, however there are limitations out there (UBIT, etc.)
But also remember that charitable organizations must be"exclusively" formed for charitable activities
The commensurate in scope standard is that you have to have sufficiently large enough charitable programming relative in size to the financial resources of the organization.
The organization in the PLR was only spending 1% (according to the IRS) on charitable activity, so this was an easy one from their perspective
However, where does one draw the line? And how do you handle organizations such as The Nature Conservancy that have literally billions of dollars locked into land? Are they less allowed now to engage in business activities?
This goes hand in hand with my call last episode for an (admittedly semi-overstated) Apollo Project on nonprofit regulation. We need more clarity and less ambiguity coming from the IRS

Resources

IRS Denies Tax-Exempt Status to Group That Spends Too Little Money on Charitable Programs, Chronicle of Philanthropy

Closing
Email me with questions and suggested topics
Sign up for the free NLP newsletter... every week get the shownotes and resources sent to you by email, plus get additional free content on the laws impacting nonprofits. Go to nplawcast.com/newsletter for more info and to sign up.
Need more than the podcast? Tim-Mooney.com and Beyond the Podcast at nplawcast.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

Nonprofit Law Podcast #38: An Apollo Project for Nonprofits

2008-06-15T13:48:00.000-07:00

An Apollo Project for Nonprofits

Download: Nonprofit Law Podcast #38 (mp3, 6:54)

Shownotes

Intro

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

More clarity, not less

From BNA:

'Inferential' Intervention Trend

[Marcus Owen's] firm has seen the emergence of differing interpretations of the facts-and-circumstances standard that IRS applies to all political activity referrals, he said. Some offices have a more
liberal interpretation where only allegations of explicit statements of campaign intervention lead to investigations, while other offices are more willing to look at allegations of implicit or indirect
campaign intervention, he said.

What he called a determination of "inferential" intervention is also emerging from IRS. This he described as "inferences derived from discussions of candidate's positions on an issue ... but somewhere else in the organization, another Web site or something off a Web site could carry with it a flavor of the organization's position on the same issue, and IRS could conflate those two and come to the conclusion that there was inferential intervention."

Closing
Email me with questions and suggested topics
Sign up for the free NLP newsletter... every week get the shownotes and resources sent to you by email, plus get additional free content on the laws impacting nonprofits. Go to nplawcast.com/newsletter for more info and to sign up.
Need more than the podcast? Tim-Mooney.com and Beyond the Podcast at nplawcast.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

Nonprofit Law Podcast #37: Decoding the Nonprofit Form

2008-04-13T17:26:00.001-07:00

Decoding the Nonprofit Form

Download: Nonprofit Law Podcast #37 (mp3, 7:54)

Shownotes

Intro

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

How you can pick up clues on the type of nonprofit you hear about in the news

This show is all about figuring out the type of nonprofit
A recent article on David Brock's new organizational involvement spurred this:
"Brock wouldn't detail Progressive Media USA's strategy, and stressed that - as required by his group's nonprofit status - the spending would be on a mix of direct electoral politics and issue ads with no direct connection to the race." (Politico/CBSNews.com)
What type of nonprofit?
501(c)(3)? Check out their website... do they allow for charitable deductions for donations? Does the solicitation page specifically say contributions are NOT deductible?
Deductible? 501(c)(3)... likely a public charity
If not... keep looking for more clues!
Does the organization engage in ALL election activity supporting or opposing a candidate?
Probably a 527
Does it do mixed advocacy - some supporting or opposing a candidate and some not?
Probably a 501(c)(4)... Progressive Media USA might event have both a (c)(4) and an affiliated 527, so it's not always as easy to pick out everything from one source!

Little clues here in there can lead you find out without relying on the cheat (Guidestar or a personal visit to the offices!)

Closing
Email me with questions and suggested topics
Sign up for the free NLP newsletter... every week get the shownotes and resources sent to you by email, plus get additional free content on the laws impacting nonprofits. Go to nplawcast.com/newsletter for more info and to sign up.
Need more than the podcast? Tim-Mooney.com and Beyond the Podcast at nplawcast.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

Nonprofit Law Podcast #36: Top 6 resources

2008-03-30T11:12:00.000-07:00

Top 6 resources

Download: Nonprofit Law Podcast #36 (mp3, 8:39)

Shownotes

Intro

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

My Top 6 Resources
This week is all "resource time" here on the podcast - my top 6 resources - 3 sites in two categories

Operational information - excellent resources for how to get things done right
Guidestar
CraigsList Foundation
BoardSource

Infrastructure organizations - operational guidance plus representation of your interests
Alliance for Justice - Nonprofit Advocacy Project and Foundation Advocacy Initiative
National Council of Nonprofit Associations (NCNA) and your state nonprofit association
Independent Sector

Closing
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Sign up for the free NLP newsletter... every week get the shownotes and resources sent to you by email, plus get additional free content on the laws impacting nonprofits. Go to nplawcast.com/newsletter for more info and to sign up.
Need more than the podcast? Tim-Mooney.com and Beyond the Podcast at nplawcast.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

Nonprofit Law Podcast #35: Joining a Nonprofit Board

2008-03-16T09:12:00.000-07:00

Joining a Nonprofit Board

Download: Nonprofit Law Podcast #35 (mp3, 9:42)

Shownotes

Intro

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

News & Notes
- From the Nonprofit Law Blog (tim-mooney.com/lawblog)
- Senate deepens financial review of television ministries - NBC is reporting that the Senate Finance committee is renewing its demands for certain churches to provide detailed financial information. The letters sent today are a follow-up to letters sent last year to a virtual who's who of large televangelist ministries, including Benny Hinn and Kenneth Copeland.
- IRS reaches out to charities to aid in economic stimulus - The IRS is encouraging various partners and stakeholders such as charities, churches and governmental organizations to assist in efforts to reach out to those Americans who may be eligible for the 2008 economic stimulus payment but who normally have no requirement to file a tax return. People who receive certain Social Security, Veterans Affairs, Railroad Retirement or wages from earned income or combat pay may be eligible and not know it.

Joining a nonprofit board
- Duties of care, loyalty, and obedience
- duty of care is the duty to pay attention to the organization—to monitor its activities, see that its mission is being accomplished, and guard its financial resources.
- duty of loyalty is the duty to avoid conflicts of interest
- In cases of potential conflict of interest, directors must act to preserve and enhance public trust in the organization by putting the interests of the organization ahead of all other business and personal interests.
- Watch out for self dealing!
- duty of obedience is to carry out the purposes of the organization and to comply with the law.
- Before you say yes and join the board, do your homework
- Know the bylaws
- Know the expectations (financial goals for board members, etc.?)
- Know how you protect the organization (insurance coverage sufficient? etc.)

Resources
Guidestar - Joining a Nonprofit Board in a Post-Enron World
MN Council of Nonprofits - Roles and Responsibilities of the Nonprofit Board
BoardSource - The Nonprofit Board Answer Book

Closing
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Sign up for the free NLP newsletter... every week get the shownotes and resources sent to you by email, plus get additional free content on the laws impacting nonprofits. Go to nplawcast.com/newsletter for more info and to sign up.
Need more than the podcast? Tim-Mooney.com and Beyond the Podcast at nplawcast.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

Nonprofit Law Podcast #34: What triggers an IRS audit?

2008-03-02T11:06:00.000-08:00

What triggers an IRS audit?
Download: Nonprofit Law Podcast #34 (mp3, 6:03)

Shownotes

Intro

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

News & Notes
- Nonprofits and Elections: Balancing Personal Versus Organizational Activity on-demand video screencast is available now at nplawcast.com/beyondthepodcast.
- Newsletter subscribers... next week I'll be releasing a free screencast on filling out the Form 990-N. If you're not a subscriber, sign up at nplawcast.com/newsletter.

What triggers an audit?
- To determine which organizations should be targeted, experienced specialists analyze information from Forms 990 and other sources.
- This analysis will usually result in the selection of a group of returns for examination or compliance check.
- EO also reviews media reports and receives complaints from the general public and Congress about potential non-compliance by exempt organizations.
- After confirming the information, and when appropriate, these organizations may be selected for examination or to receive a compliance check. For details on how EO handles complaints about exempt organizations, see Fact Sheet 2008-13. (It goes to the Dallas field office, because Texans know how to investigate nonprofits, presumably?)
- Regardless of the process used to select returns, EO does not presume that an organization is violating the tax laws before it begins the examination or sends a compliance check letter.

Resources
IRS: FS 2008-14

Closing
Email me with questions and suggested topics
Sign up for the free NLP newsletter... every week get the shownotes and resources sent to you by email, plus get additional free content on the laws impacting nonprofits. Go to nplawcast.com/newsletter for more info and to sign up.
Need more than the podcast? Tim-Mooney.com and Beyond the Podcast at nplawcast.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

Nonprofit Law Podcast #33: What counts as lobbying?

2008-02-24T09:13:00.000-08:00

What counts as lobbying?

Download: Nonprofit Law Podcast #33 (mp3, 7:32)

Shownotes

Intro

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

News & Notes
- Recommended resource if none of the lobbying talk makes sense: Alliance for Justice's Worry-Free Lobbying for Nonprofits (PDF).
- Nonprofits and Elections: Balancing Personal Versus Organizational Activity on-demand video screencast is available now at nplawcast.com/beyondthepodcast.

What counts as lobbying for a public charity?

- Two sets of rules: one has no definitions, the other we'll cover ("501(h) election")
- Do yourself a favor and check to see if your organization has made the 501(h) election - if not, strongly consider making it even if you engage in little or no lobbying activity
- Direct Lobbying:
- Communication
- With a legislator
- Expressing a view on specific legislation
- Grassroots Lobbying:
- Communication
- With the general public
- Expressing a view on specific legislation
- With a call to action
- A great deal of public advocacy is NOT lobbying, even though it is compelling, direct and (sometimes) rather pointed and critical
- Many visits with legislators and their staff are NOT lobbying because the discussion centers on broad issues, not specific legislation
- In doubt? Run your activity through the elements!

Resources
MNCN: Nonprofit Lobbying and the Law
CLPI: Lobbying and the Law
AFJ: State lobbying law resources and Worry-Free Lobbying for Nonprofits

Closing
Email me with questions and suggested topics
Sign up for the free NLP newsletter... every week get the shownotes and resources sent to you by email, plus get additional free content on the laws impacting nonprofits. Go to nplawcast.com/newsletter for more info and to sign up.
Need more than the podcast? Tim-Mooney.com and Beyond the Podcast at nplawcast.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

Nonprofit Law Podcast #32: Lobbying basics

2008-02-16T22:45:00.000-08:00

Lobbying basics

Download: Nonprofit Law Podcast #32 (mp3, 9:48)

Shownotes

Intro

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

News & Notes
- Recommended blog: a great source of nonprofit news is The Chronicle of Philanthropy's Philanthropy Today. The Chronicle is a subscription service (and well worth it) but this is a free source of news from the Chronicle. I have it in my Google Reader so I get the stories delivered as soon as they are posted.
- Nonprofits and Elections: Balancing Personal Versus Organizational Activity on-demand video screencast is available now at nplawcast.com/beyondthepodcast.

The "L" word

- Yes, nonprofits can lobby
- Yes, there are restrictions ranging from the substantial (private foundations) to the minimal (registration requirements for all)
- Lobbying has a legal definition - there are many ways an organization can advocate (sometimes strongly) without it counting as lobbying
- The basic rundown
- Private foundations are essentially prohibited from lobbying, BUT there are many ways to visit legislators and educate (tax law)
- Public charities are limited in the amount of lobbying they can engage in, but the amount allowed is surprisingly high for some (tax law)
- Other 501(c)s are not limited at all in the amount of lobbying they can engage in, but it must fit their exempt purpose (tax law)
- 527s rarely lobby because it is unusual that lobbying would support or oppose a candidate (their exempt purpose)
- Federal law and most state laws require lobbyist registration for all (varies wildly - check your state)
- Where things get tricky
- Ballot measures - intersection with election laws
- Local bodies of government - sometimes unclear whether there is legislation or a legislative body
- Funder restrictions - the biggest area - a public charity may have a large legal capacity to lobby, but its source of funding may have contractual restrictions on lobbying so the nonprofit's practical capacity is much lower

Resources
MNCN: Nonprofit Lobbying and the Law
CLPI: Lobbying and the Law
AFJ: State lobbying law resources

Closing
Email me with questions and suggested topics
Sign up for the free NLP newsletter... every week get the shownotes and resources sent to you by email, plus get additional free content on the laws impacting nonprofits. Go to nplawcast.com/newsletter for more info and to sign up.
Need more than the podcast? Tim-Mooney.com and Beyond the Podcast at nplawcast.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

Nonprofit Law Podcast #31: Do we have to file a 990?

2008-02-10T16:43:00.000-08:00

Do we have to file a 990?

Download: Nonprofit Law Podcast #31 (mp3, 6:26)

Shownotes

Intro

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

News & Notes
- Nonprofits and Elections: Balancing Personal Versus Organizational Activity on-demand video screencast is available now at nplawcast.com/beyondthepodcast.

Do all nonprofits have to file Form 990?

- No, but most do. The default is that your nonprofit will be filing a 990 about 5 months after the end of its tax year
- Who doesn't file a Form 990?
- Small organizations
- Gross receipts of less than $100,000 and assets of less than $250,000 at the end of the year (Form 990-EZ)
- Gross receipts normally less than $25,000 (no filing necessary for FY 2007)
- For FY 2008 (next year's filing) these organizations may be required to file an annual electronic notice - e-Postcard
- Churches and church-affiliated organizations (no filing necessary)
- Private foundations (Form 990-PF)
- Employee benefit trusts (Form 5500)
- Black lung benefit trusts (Form 990-BL)
- Special partnerships of religious and apostolic organizations (Form 1065).

Resources
IRS: EO Reporting Requirements - Annual Return Filing Exceptions

Closing
Email me with questions and suggested topics
Sign up for the free NLP newsletter... every week get the shownotes and resources sent to you by email, plus get additional free content on the laws impacting nonprofits. Go to nplawcast.com/newsletter for more info and to sign up.
Need more than the podcast? Tim-Mooney.com and Beyond the Podcast at nplawcast.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

Nonprofit Law Podcast #30: Can a candidate use our space?

2008-02-03T13:51:00.001-08:00

Can a candidate use our space?

Download: Nonprofit Law Podcast #30 (mp3, 7:18)

Shownotes

Intro

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

News & Notes
- What's the IRS up to this year? According to its 2008 guidelines (PDF), the IRS is going to be focusing on (1) the redesign of Form 990, and (2) efforts to reign in abusive donation transactions particularly over-valuation of non-cash contributions. More at Guidestar.org.
- Nonprofits and Elections: Balancing Personal Versus Organizational Activity on-demand video screencast is available now as special preview for newsletter subscribers and will be available February 10th for the rest of the listenership. More on newsletter signup at the end of the show.

Can a candidate use our space?

- 501(c)(4)s, etc.
- Yes, and you can limit it in a partisan way
- If limited in a partisan manner, this will count toward your limits on partisan activity under tax law
- Use must be incidental (about an hour per week or 4 hours per month) or it might be considered a contribution unless candidate reimburses (federal candidates - state law varies widely)
- 501(c)(3)s
- Must be strictly nonpartisan (nonpartisan debates, etc.) OR
- The use is part of a community offering (church rec room or community room) that is regularly made available for noncommercial purposes, without regard to political affiliation
- You can charge fees

Resources
FEC: Citizens' Guide
IRS: CPE Guide, Election Year Issues (PDF - p383)

Closing
Email me with questions and suggested topics
Sign up for the free NLP newsletter... every week get the shownotes and resources sent to you by email, plus get additional free content on the laws impacting nonprofits. Go to nplawcast.com/newsletter for more info and to sign up.
Need more than the podcast? Tim-Mooney.com and Beyond the Podcast at nplawcast.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.

Nonprofit Law Podcast #29: Unrelated Business Income

2008-01-27T12:00:00.000-08:00

Unrelated Business Income

Download: Nonprofit Law Podcast #29 (mp3, 9:41)

Shownotes

Intro

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

News & Notes
Welcome Blue Oregon readers
Sign up for the free NLP newsletter... every week get the shownotes and resources sent to you by email, plus get additional free content on the laws impacting nonprofits. Go to nplawcast.com/newsletter for more info and to sign up.
Nonprofits and New Media: Legal Rules for using the Internet, Podcasts and Social Networks is available.
Next Beyond the Podcast offering: Nonprofits and Elections: Balancing Personal Activity versus Organizational Activity. Available on January 31st for newsletter subscribers who will receive a discount through February 10th when it will be released to the rest of the listenership.
Nonprofits and New Media: Legal Rules for using the Internet, Podcasts and Social Networks is available.
Check out the poll at the bottom of the Beyond the Podcast page at nplawcast.com and give your input on what topics you'd like covered in the some of the next BTP offerings.

Unrelated Business Income
- Listener suggestion: issues regarding the parking garage run by a nonprofit - is it subject to taxation?
- Any income an organization receives from a regular trade or business that is not substantially related to the organization's exempt purposes.
- trade or business can be a small part of overall work (i.e. NYU and Mueller Spaghetti)
- regularly carried on: has a frequency (not a one-shot)
- substantially related - if the sales don't somehow advance the exempt purposes of the organization
- IRS uses facts and circumstances analysis
- Affects most 501(c) organizations
- Subjects them to a tax - "UBIT"
- New rule: organizations have to make their UBIT returns (Form 990T) available to the public!
- Examples
- membership list sales: UBIT
- pet boarding by an anti-cruelty org: UBIT
- art museum gift cards with art: not UBI
- newsletters/magazines: can go either way (depends on whether the articles cover the exempt purpose)

Resources
IRS: Publication 598 (PDF - newly updated)
IRS: UBI defined
BoardSource: What is UBIT?

Closing

Email me with questions and suggested topics
Need more than the podcast? Tim-Mooney.com and Beyond the Podcast at nplawcast.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

Nonprofit Law Podcast #28: Nonprofit Mail Rates

2008-01-20T02:49:00.000-08:00

Nonprofit Mail Rates

Download: Nonprofit Law Podcast #28 (mp3, 8:48)

Shownotes

Intro

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

News & Notes
Sign up for the free NLP newsletter... every week get the shownotes and resources sent to you by email, plus get additional free content on the laws impacting nonprofits. Go to nplawcast.com/newsletter for more info and to sign up.
Nonprofits and New Media: Legal Rules for using the Internet, Podcasts and Social Networks is available. Early reviews are great, and I'm glad it's been well-recieved. Check out the poll at the bottom of the Beyond the Podcast page at nplawcast.com and give your input on what topics you'd like covered in the some of the next BTP offerings. I'll announce the next BTP topic next show.

Nonprofit Mailing Rates
- Why would you want it? Cheap mailings - 40% of standard mail rates
- Who qualifies? Mainly (c)(3)s and some very limited political committees (i.e. official Dem and GOP committees) - but qualified orgs do not have to be 501(c)(3)s
- How to apply -

PS Form 3624

Application to Mail at Nonprofit Standard Rate

- Determination letter, supporting docs of activity

- Financial statements, etc.
- Not an insignificant form
- Congrats - you're approved... now what?
- What can be mailed is strictly controlled
- Off limits
- Certain advertisements
- Mailing other org's mail (that includes affiliated (c)(4)s and 527s!)
- Mailing without identifying marks
- Make sure you mail at least once every 2 years (200 pieces or 50 lbs)
- Story time... the Portland Post Office vs. a suburban Minneapolis Post Office

Resources
USPS: NetPost Mailing Online - Nonprofit FAQs
USPS:

PS Form 3624

Application to Mail at Nonprofit Standard Rate

(PDF)

Closing

Email me with questions and suggested topics
Need more than the podcast? Tim-Mooney.com and Beyond the Podcast at nplawcast.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.

Nonprofit Law Podcast #27: Reporting changes to the IRS

2008-01-13T14:41:00.000-08:00

Reporting changes to the IRS

Download: Nonprofit Law Podcast #27 (mp3, 6:19)

Shownotes

Intro

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

News & Notes
Sign up for the free NLP newsletter... every week get the shownotes and resources sent to you by email, plus get additional free content on the laws impacting nonprofits. Go to nplawcast.com/newsletter for more info and to sign up.
Nonprofits and New Media: Legal Rules for using the Internet, Podcasts and Social Networks is available. Early reviews are great, and I'm glad it's been well-recieved. Check out the poll at the bottom of the Beyond the Podcast page at nplawcast.com and give your input on what topics you'd like covered in the some of the next BTP offerings.

New Year, New Changes?
A lot of nonprofits consider making changes to their organization - new offerings, new services, new board members... even new addresses
How do you handle letting the IRS know about these things?
Form 990 - your annual return generally contains places in the form to include any of the ordinary changes that happen with nonprofits
new address, new board members, new officers, etc.
What about bigger changes
In some instances, bigger changes require more information to supplement the 990 - for instance, if your nonprofit reincorporates, you would need to attach the new articles of incorporation to the Form 990
What about super-big changes?
If your nonprofit is changing its services or mission dramatically, it might require additional action
Private Letter Ruling - a lengthy process with the IRS asking for specific advice on a specific matter. Get a lawyer!
Another 1023 - sometimes the changes are so big that you might as well be a new organization (i.e. a totally different exempt purpose than the one you applied for recognition in the first place)
This would be due to big changes... going from private foundation to public charity, or nonrelgious organization to a religious one that is exempt from filing 990s, etc.

Resources
Exempt Organizations - Reporting Changes to IRS
Private Letter Rulings and Determination Letters

Closing

Email me with questions and suggested topics
Need more than the podcast? Tim-Mooney.com and Beyond the Podcast at nplawcast.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.

Nonprofit Law Podcast #26: Beyond the Podcast

2007-12-30T08:28:00.000-08:00

Beyond the Podcast

Download: Nonprofit Law Podcast #26 (mp3, 5:05)

Shownotes

Intro

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

News & Notes
We're going on holiday schedule into the new year... we'll have new editions every other week. Happy new year!
Sign up for the free NLP newsletter... every week get the shownotes and resources sent to you by email, plus get additional free content on the laws impacting nonprofits. Go to nplawcast.com/newsletter for more info and to sign up.

Beyond the Podcast
- Nonprofits are generally underserved in how they approach the regulations and laws because there's a dearth of services out there that are reasonable for nonprofit budgets
- I've been very happy with the response to the show... but it's always a bit frustrating to see the gap between what people can get between a 10 minute show and hiring a lawyer
- So, let's fill that gap and go "Beyond the Podcast"
- The Nonprofit Law Podcast will always remain a free resource for nonprofit staff, officers and professionals. Beyond the Podcast will feature options for those who want to go "beyond the podcast" to dig into some of the topics in greater detail. It will stay low-cost - we want to make these easy for even the smallest community nonprofit to afford.
- We'll be launching this on January 7, 2008... but if you are a newsletter subscriber you get an early shot at our first production - Nonprofits and New Media: Legal Rules for using the Internet, Podcasts and Social Networks

Nonprofits and New Media DVD
- Remember all the way back in #6 when this was announced?
- Evolved from an audioguide to a screencast... to a DVD
- 90 minutes of training
- Join Tim Mooney, a nonprofit attorney with over a decade of experience, for an overview of the laws impacting the use of new media by nonprofits. What does tax law have to say about your organization's podcast and MySpace page? Are there federal election law implications to your get-out-the-vote efforts to your membership listserve? What kind of copyright issues does your nonprofit face when it uses other people's photos on its blog? All of these questions, and more, on the first in NLP's Beyond the Podcast series.
- Sign up for the NLP newsletter now and get this early plus get a $10 discount - nplawcast.com/newsletter
- Otherwise, keep your eyes peeled to nplawcast.com

Closing

Email me with questions and suggested topics
Need more than the 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.

Nonprofit Law Podcast #25: End of the year guide to recordkeeping

2007-12-16T09:45:00.000-08:00

End of the year guide to recordkeeping

Download: Nonprofit Law Podcast #25 (mp3, 6:39)

Shownotes

Intro

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

News & Notes
We're going on holiday schedule through the end of the year... we'll have new editions every other week through the end of the year. Happy holidays!
Sign up for the free NLP newsletter... every week get the shownotes and resources sent to you by email, plus get additional free content on the laws impacting nonprofits. Go to nplawcast.com/newsletter for more info and to sign up.

What should we be doing at the end of a fiscal year?
Listener question...
It's big enough of a task to be mentioned alone: recordkeeping.
It's the law
It's a good management tool
It can protect you against false accusations by others that would like to make your organization's existence more difficult

Corporate record book

Make one if you don't have it... a binder with all of your important docs
IRS determination letter, articles of Incorporation, bylaws, and minutes of board meetings
This should be permanently kept and updated when necessary
Remember some of these documents must be made publicly available, so this is an important one

Lobbying and other reporting information

Keep track of hours of lobbying as a 501(c)(3)
Keep track of amount of partisan activity as a 501(c)(4)
You'll need this for your 990 in the spring

Financial records

Bank statements, old Form 990s, internal reports by treasurers, etc.
Keep these for at least seven years (law requires 3 for some, like the 990s)

Make sure you are keeping up with donor receipts for end of the year appeals!

Resources
NYS Office of Children & Family Services: Importance of Record Keeping
Pfau Englund retention page

Closing

Email me with questions and suggested topics
Screencast on using the Internet, podcasting and social networking for your nonprofit - go to nplawcast.com for details
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.

Nonprofit Law Podcast #24: Charitable solicitation registration

2007-12-02T16:40:00.000-08:00

Charitable solicitation registration

Download: Nonprofit Law Podcast #24 (mp3, 6:39)

Shownotes

Intro

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

News & Notes
We're going on holiday schedule through the end of the year... we'll have new editions every other week through the end of the year. Happy holidays!
Sign up for the free NLP newsletter... every week get the shownotes and resources sent to you by email, plus get additional free content on the laws impacting nonprofits. Go to nplawcast.com/newsletter for more info and to sign up.

Charitable solicitation registration
Listener question...
The piece a lot of nonprofits forget
A function of state law (sometimes even municipal!)
43 states plus DC require it
Make sure you are registered in your "domiciled" state if it's required
The big question... if we ask for donations on our website, do we have to file in every state?
Answer... technically, it depends on EACH state's laws on contacts and solicitation, so you may technically have to depending on your activities
Huge expense and a huge hassle
Practical answer... few states are going after non-filers if their only "contact" is a potential one
Practical solution... file in states that you are targeting or have some kind of a real presence
Consider using the Multistate Filing form

Resources
Idealware.org
Multistate Filing form

Closing

Email me with questions and suggested topics
Screencast on using the Internet, podcasting and social networking for your nonprofit - go to nplawcast.com for details
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.

Nonprofit Law Podcast #23: Should we file an amended tax return?

2007-11-18T10:27:00.000-08:00

Should we file an amended tax return?

Download: Nonprofit Law Podcast #23 (mp3, 5:50)

Shownotes

Intro

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

News & Notes
We're going on holiday schedule through the end of the year... we'll have new editions every other week through the end of the year. Happy holidays!
Sign up for the free NLP newsletter... every week get the shownotes and resources sent to you by email, plus get additional free content on the laws impacting nonprofits. Go to nplawcast.com/newsletter for more info and to sign up.

When should a nonprofit amend its IRS tax return
Generally, not often - since there are no refunds to consider there is usually no economic advantage to doing it
Only if there is a substantial error
501(c)(3) that checks the box saying it engaged in political activity
501(c)(3) that exceeded its lobbying limits, only to later discover it did not and would like the excise taxes returned
501(c)(4) that miscalculated the amount of political activity it engaged in
Other substantial errors in reporting (income, etc.)
Missing schedules of a return
Best practices - write "ameded return" on the top of every page of the return in addition to checking the appropriate box for amended return on page 1

Closing

Email me with questions and suggested topics
Screencast on using the Internet, podcasting and social networking for your nonprofit - go to nplawcast.com for details
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.

Nonprofit Law Podcast #22: Help! I lost my 501(c)(3) letter!

2007-11-11T11:56:00.000-08:00

Help, I lost my 501(c)(3) letter!

Download: Nonprofit Law Podcast #22 (mp3, 6:43)

Shownotes

Intro

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

News & Notes
Kudos to Corey and 501(c)(3) podcast... he's taking on a new job and moving, which means a brief hiatus for his show. We all look forward to his return to podcasting in January.
Sign up for the free NLP newsletter... every week get the shownotes and resources sent to you by email, plus get additional free content on the laws impacting nonprofits. Go to nplawcast.com/newsletter for more info and to sign up.

Help!! I lost my 501(c)(3) letter!
It's important - public charities are asked for copies of their letter ALL the time
Before you lose it... scan and post it to your website in a "secret" place
IF you lose it... don't panic
Form 4506-A (PDF)
IRS Tax Exempt and Government Entities (TE/GE) Customer Account Services at (877) 829-5500

Resources
IRS.gov/eo
IRS Tax Exempt and Government Entities (TE/GE) Customer Account Services at (877) 829-5500

Closing

Email me with questions and suggested topics
Screencast on using the Internet, podcasting and social networking for your nonprofit - go to nplawcast.com for details
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.

Nonprofit Law Podcast #21: Nonprofit insurance

2007-11-06T12:04:00.000-08:00

Nonprofit insurance

Download: Nonprofit Law Podcast #21 (mp3, 9:30)

Shownotes

Intro

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

What the heck is D&O insurance, and do we need it?
Directors and Officers Insurance
Does NOT cover everything under the sun
Covers breaches of duty to the nonprofit by directors and officers
D&O pays for "wrongful acts."
D&O insurance usually covers:
* Employment-discrimination, harassment, and wrongful termination
* Failure to provide services to parties
* Mismanagement of assets (negligence, etc.)
D&O insurance usually does NOT cover:
* bodily injury
* property damage
* other torts on your premises/property
Other insurance, (usually general liability) covers these claims.

Insurance is lawyer coverage as much as it is claim coverage

Depending on your situation, here's some thoughts on insurance:
General liability may be the better first buy... D&O as you get larger
Consult a good insurance broker with experience in nonprofits
Talk with your state's nonprofit association for more

Resources
Nonprofit Directors and Officers Insurance: The Good, the Bad, and the Ugly - Guidestar.org
Directors and Officers Liability Insurance - NPCCNY
Don Kramer's Nonprofit Issues regarding the Federal Volunteer Protection Law

Closing

Email me with questions and suggested topics
Screencast on using the Internet, podcasting and social networking for your nonprofit - go to nplawcast.com for details
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.

Nonprofit Law Podcast #20: Election season series - voter registration and GOTV

2007-10-28T13:26:00.000-07:00

Election season series - voter registration and GOTV

Download: Nonprofit Law Podcast #20 (mp3, 10:39)

Shownotes

Intro

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

Month long series on election activity

Focuses on public charities, other 501(c)s and 527s
Covering voter guides, debates & forums, renting mailing lists, ballot measures, and voter registration/GOTV
Why now? Many nonprofits are already planning 2008 and some are already engaged in it
Don't do any of these things? Still important to know in case something unexpected comes up

Voter registration -registering people to vote
GOTV - getting people to the polls, or otherwise aiding them to vote

501(c)(3)s
Purely nonpartisan
One permissible goal - getting people to exercise their right to vote
Permissible to target activities if based on nonpartisan criteria like location and audience
May not target based upon the way a group votes May target if a disadvantaged or underrepresented group or targeted group has common interest
Do discuss a broad range of issues
Don’t suggest a correct position
Vote green. Register here. - NO You can have an impact on the decisions affecting your life. Register to vote now. - YES
Let’s get out the pro-choice vote. Register here. - NO

Other 501(c)s
Partisan "slant" ok, but it would then count towards secondary activity, so watch amount

527s
Partisan "slant" ok

Resources

AFJ's 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 - go to nplawcast.com for details
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.

Nonprofit Law Podcast #19: Election season series - ballot measures

2007-10-21T10:22:00.000-07:00

Election season series - ballot measures

Download: Nonprofit Law Podcast #19 (mp3, 7:09)

Shownotes

Intro

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

Month long series on election activity

Focuses on public charities, other 501(c)s and 527s
Covering voter guides, debates & forums, renting mailing lists, ballot measures, and voter registration/GOTV
Why now? Many nonprofits are already planning 2008 and some are already engaged in it
Don't do any of these things? Still important to know in case something unexpected comes up

Ballot Measures
Also, referenda, ballot questions, bond measures, state questions, etc.
Legislation that is considered by voters
Work for or against is considered a hybrid... lobbying by tax law, election activity by state election law

501(c)(3)s
Limited capacity to work on ballot measures
Reporting requirements and registration usually required under state laws

Other organizations?
Lobbying not an issue under tax law
Reporting requirements and registration usually required under state laws

Resources

AFJ's Rules of the Game
AFJ's Seize the Initiative

Closing

Email me with questions and suggested topics
AP audio & handbook on using the Internet, podcasting and social networking for your nonprofit - go to nplawcast.com for details
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.

Nonprofit Law Podcast #18: Election season series - renting mailing lists

2007-10-14T12:34:00.000-07:00

Election season series - renting mailing lists

Download: Nonprofit Law Podcast #18 (mp3, 5:35)

Shownotes

Intro

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

Month long series on election activity

Focuses on public charities, other 501(c)s and 527s
Covering voter guides, debates & forums, renting mailing lists, ballot measures, and voter registration/GOTV
Why now? Many nonprofits are already planning 2008 and some are already engaged in it
Don't do any of these things? Still important to know in case something unexpected comes up

501(c)(3)s can rent their mailing lists to candidates!?
A 501(c)(3) may rent mailing lists to political candidates
Must make the list available to all candidates
IRS is likely to look less favorably on such list rentals if the 501(c)(3) does not make such lists available to the public on a regular basis on the same terms that the lists are made available to candidates
Best practices - use a list broker

Other organizations?
Less of an issue since they can support or oppose candidates
Watch out for contribution prohibitions

Resources

AFJ's Rules of the Game
IRS Fact Sheet 2006-17

Closing

Email me with questions and suggested topics
Audio guide on using the Internet, podcasting and social networking for your nonprofit coming soon- go to nplawcast.com for details
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.

Nonprofit Law Podcast #17: Election season series - debates & forums

2007-10-07T12:21:00.000-07:00

Election season series - debates and forums

Download: Nonprofit Law Podcast #17 (mp3, 10:43)

Shownotes

Intro

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

Month long series on election activity

Focuses on public charities, other 501(c)s and 527s
Covering voter guides, debates & forums, renting mailing lists, ballot measures, and voter registration/GOTV
Why now? Many nonprofits are already planning 2008 and some are already engaged in it
Don't do any of these things? Still important to know in case something unexpected comes up

Debates & forums

Debate - multiple candidates on "stage" at same time
Forum - one at a time appearance

501(c)(3)s
Purely nonpartisan
Broad range of issues Unbiased questions
Invite all viable candidates Apply the rules fairly
Impartial moderator
Unbiased audience
Forums - no contextual favoritism
Special issue - inviting candidate for non-candidate reason (award, etc.) ok so long as it is not timed to coincide with the election

Other 501(c)s
Partisan "slant" ok, but it would then count towards secondary activity, so watch amount

527s
Forums and rallies typical

Resources

AFJ's Rules of the Game

Closing

Email me with questions and suggested topics
Audio guide on using the Internet, podcasting and social networking for your nonprofit coming later this week - go to nplawcast.com for details.
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.

Nonprofit Law Podcast #16: Election season series - voter guides

2007-09-30T12:15:00.000-07:00

Election season series - voter guides

Download: Nonprofit Law Podcast #16 (mp3, 9:10)

Shownotes

Intro

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

Month long series on election activity

Focuses on public charities, other 501(c)s and 527s
Covering voter guides, debates & forums, renting mailing lists, ballot measures, and voter registration/GOTV
Why now? Many nonprofits are already planning 2008 and some are already engaged in it
Don't do any of these things? Still important to know in case something unexpected comes up

Voter guides

501(c)(3)s
Purely nonpartisan
IRS safe harbor... reprint candidate questionnaire
No pledges
Broad range of issues
IRS: Too easy to make any candidate look good or bad when focusing on a single issue
Position on one issue should not suggest position on another
Several issues: four? five? more?
Distribute to all
Unbiased questions
No editing

Other 501(c)s
Partisan "slant" ok, but it would then count towards secondary activity, so watch amount

527s
Generally comparing and contrasting issue differences before a targeted distribution (i.e. NRA PAC comparing gun positions to NRA members)

Resources

AFJ's Rules of the Game

Closing

Email me with questions and suggested topics
Audio guide to using the Internet, podcasting and social networking for your nonprofit - go to nplawcast.com for details next week
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.

Nonprofit Law Podcast #15: Election season series - the basics

2007-09-23T08:53:00.000-07:00

Election season series - the basics

Download: Nonprofit Law Podcast #15 (mp3, 8:44)

Shownotes

Intro

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

Month long series on election activity

Focuses on public charities, other 501(c)s and 527s
Covering voter guides, debates & forums, renting mailing lists, ballot measures, and voter registration/GOTV
Why now? Many nonprofits are already planning 2008 and some are already engaged in it
Don't do any of these things? Still important to know in case something unexpected comes up

The basics

501(c)(3)s
Absolute prohibition on supporting or opposing candidates for public office
Nonpartisan work allowed (education, voter registration, GOTV, etc.)
Ballot measure work ok (lobbying) but follow state laws

Other 501(c)s
Secondary activity
Follow election laws (many prohibit express advocacy, almost all prohibit contributions)
Ballot measure work ok (lobbying) but follow state laws

527s
Organized to impact elections
Reporting requirements on state and federal level vary
Some register as political committees/PACs, others don't and are limited in what they can do (but this reduces reporting and accountability)

Resources

AFJ's 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 soon
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.

Nonprofit Law Podcast #14: Who gets to see what?

2007-09-16T00:48:00.000-07:00

Who gets to see what?

Download: Nonprofit Law Podcast #14 (mp3, 7:21)

Shownotes

Intro

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

NLP News

Now a top 15 show in iTunes... thank you listeners
Pass along the links to your colleagues who might be interested... 5-10 minutes per week, and I take requests on topics!

Listener request - who gets to see what?

- "For entertainment, some people in this town make trouble."
- Who gets to see bylaws, articles of incorporation, minutes, financial reports, etc?
- Generally, you're a private org and nobody has access to records other than proscribed by law
- Federal tax law... we covered in ep 4
- Virtually everything else is dependent on state and local laws
- Some states require additional disclosure through solicitation laws (ex. OR, WA)
- Even some munis require enhanced disclosure of records if you do business with them (ex. SF)
- Most states have public access to corporate records online, but not things like bylaws etc.
- Bylaws rule the rest (member or public access to records, etc.)

Tips & Best practices

- Check state and local laws
- Be very aware of solicitation registration rules
- If someone asks for records other than ones they are entitled to, and cannot show you the legal reason why they are entitled to them, you have the right to refuse the request
- Sometimes document requestors bear no ill-will (academics, etc.). Choose your battles.

Closing

Email me with questions and suggested topics
AP audio & handbook on using the Internet, podcasting and social networking for your nonprofit coming soon
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.

Nonprofit Law Podcast #13: The new IRS return for small nonprofits

2007-09-09T09:46:00.000-07:00

The new IRS return for small nonprofits

Download: Nonprofit Law Podcast #13 (mp3, 5:59)

Shownotes

Intro

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

What are the changes coming for small nonprofits?
- Form 990N... the "e-postcard"
- Previously, tax-exempt organizations with gross receipts of $25,000 or less were not required to submit information returns. Beginning next year, they will file the Form 990N.
- Short, easy and electronic
- Provide a legal name and mailing address, any other names used, a Web address if one exists, the name and address of a principal officer and a statement confirming the organization’s annual gross receipts are normally $25,000 or less.

Tips & Best practices

- Continue to track those finances!
- Be aware there will be slightly more paperwork to file (versus none!)
- Remember... organizations shouldn’t ignore filing the 990N, or they risk losing their tax-exempt status
- Info on the reporting system is forthcoming... we'll be on top of it here at the Nonprofit Law Podcast
- Make sure the gross receipts are not exceeding $25,000... if so, you've graduated to 990EZ or 990!

Resources

Educational letter from IRS (pdf)
IRS Press Release

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.

Nonprofit Law Podcast #12: Personal vs. Organizational Activity

2007-08-31T21:20:00.000-07:00

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.

Nonprofit Law Podcast #11: Fiscal sponsors

2007-08-26T09:22:00.000-07:00

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.

Nonprofit Law Podcast #10: Restricted funds and lobbying

2007-08-19T08:03:00.001-07:00

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.

Nonprofit Law Podcast #9: Do I need a nonprofit?

2007-08-12T12:13:00.000-07:00

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.

Nonprofit Law Podcast #8: Calculating public support

2007-08-05T09:19:00.000-07:00

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.

Nonprofit Law Podcast #7: Publishing votes by your legislators

2007-07-29T10:32:00.000-07:00

Publishing votes by your legislators

Download: Nonprofit Law Podcast #7 (mp3, 06:02)

Shownotes

Intro

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

Voter scorecards
Now that many states have finished their legislative sessions, some nonprofits publish the results of votes on bills
There are some rules to follow, especially if your nonprofit is a publich charity 501(c)(3)
IRS treats this activity as potential election activity, so tread carefully
If your charity is a 501(c)(4) or a labor union, or trade association, these rules don't apply... you're largely free to publish in any way

Voter scorecards to the public
Just the facts... all vanilla
No editorializing allowed
Broad range of issues

Voter scorecards to members
Members are donors and people who have volunteered more than a nominal amount of time to the organization
Editorializing is allowed
Narrow range of issues important to the organization

Final note
These are the safe harbors... if you deviate from them as a 501(c)(3) you're in the murky "facts and circumstances" area

Resources

Minnesota Council of Nonprofits Voter Education Toolbox (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.

Nonprofit Law Podcast #6: Using MySpace and other social networks

2007-07-22T11:23:00.000-07:00

Using MySpace and other social networks

Download: Nonprofit Law Podcast #6 (mp3, 07:03)

Shownotes

Intro

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

Using MySpace and other social networking sites
Great new tool
Allows for two way communication with your members and constituents
It's a public communication usually, so you need to be mindful that there are some things nonprofits cannot be involved in

Profile
This is the description of the organization... make sure it adequately represents your organization and doesn't contain any overt political statements that could be seen as supporting or opposing candidates!

Friending
Typically, members of a social network "friend" each other... it's also used to create a fanbase (i.e. bands, companies, etc.)
In the nonprofit context, it's used to show support for a set of issues
Friends can post messages on your site... this can create problems if the friends post material that doesn't fit the nonprofit's message, or worse, if it is illegal
Options --
(1) Set your profile so that all messages must be approved by an admin first
(2) Only friend people that are known quantities
(3) Make the entire profile hidden to the public (i.e. you have to be a "friend" to read your page)

Other issues

Special rules for members
Copyright
Rights of publicity
All will be covered in the upcoming AP guide - Nonprofits and New Media: Legal Rules for using the Internet, Podcasts and Social Networks

Resources

AFJ – eAdvocacy (pdf)
Advocacy Digest

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.

Nonprofit Law Podcast #5: The different flavors of nonprofits

2007-07-15T09:31:00.000-07:00

The different flavors of nonprofits

Download: Nonprofit Law Podcast #5 (mp3, 07:40)

Shownotes

Intro

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

Common characteristics

All are tax exempt
All have some kind of legal form in a state
These are federal tax law designations (numbers correspond to the tax code)

Public charities – 501(c)(3)

Support “charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and the preventing cruelty to children or animals.”
Have a certain level of public support (many small contributors… this is a future show!)
Donors get tax deductions
No support or opposition to candidates (future show)
Limited lobbying (future show)

i.e. Red Cross, American Cancer Society, etc.

Private foundations – 501(c)(3)

Same as a public charity, but they get their money from a limited source (can’t show public support)
i.e. Bill and Melinda Gates Foundation, Ford Foundation, etc.

Social Welfare – 501(c)(4)

Donors do not get tax deductions
Unlimited lobbying… tend to be advocacy groups
Limited election work (secondary activity)
i.e. Sierra Club, …

Unions and Labor Organizations – 501(c)(5) and Trade Associations – 501(c)(6)

Same rules as 501(c)(4)s

Political Organizations – 527s

PACs, political parties, formerly “Stealth PACs”
All activity goes towards the election or defeat of a candidate or ballot measure
VERY complicated because of the overlay with state or federal election laws
If you wade in this thicket, make sure you have a lawyer advising you!

Resources

AFJ – The Connection
IRS - Nonprofit index

Closing

Email me with questions and suggested topics
AP audio & written guides coming soon
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.

Nonprofit Law Podcast #4: Public disclosure rules

2007-07-08T09:41:00.000-07:00

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
Email the show

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.

Nonprofit Law Podcast #3: Time to dust off your bylaws?

2007-07-02T10:02:00.000-07:00

Time to dust off your bylaws?

Download: Nonprofit Law Podcast #3 (mp3, 08:41)

Shownotes:

Intro

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

Is it time to dust off your bylaws?

Your bylaws are important

Things to look at:
Committees… meetings… notice requirements… board terms

Time to change? Maybe… Has your organization changed?

Change in your mission
Change in organization operation
– do you really still follow the annual meeting procedures? Need to update?
– How do your bylaws handle resignations or other situations where a board member leaves?
– How do you handle members or constituents you serve? Do they have a voice on the board, or should the board really be insulated from it?

See http://tx.essortment.com/nonprofitsbylaw_pzv.htm
Advisory boards as an option or add-on

Resources

Nolo Press… How to Form a Nonprofit Corporation
BoardSource... The Nonprofit Board's Guide to Bylaws: Creating a Framework for Effective Governance
Sample bylaws – remember these bylaws were probably written for the specific needs of the organizations… look, compare, alter as needed, but they’re best as a reference. If you’ve got some complicated issues, consult a lawyer!

Foundation Center
Another sample

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.

Nonprofit Law Podcast #2: Startup nonprofits

2007-06-24T17:34:00.000-07:00

Startup nonprofits

Download: Nonprofit Law Podcast #2 (mp3, 06:56)

Shownotes:

Intro

Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
Email the show

Topic from a listener… tips on starting a nonprofit

Volunteers
Startups rely almost exclusively on heart and volunteer efforts.
Make sure you have a dedicated base of volunteers and a *very* dedicated board.
You'll be relying on them a lot over the course of the first year.

IRS
Getting nonprofit corporate status in your state is a piece of cake... in some instances it can take as little as 24 hours.
Getting the IRS to recognize your tax-exempt status is a *much* longer process, and you need to factor that into your planning.
Right now it's taking the IRS 9-12 months to process applications... some people won't give charitable contributions until that process is done, so it definitely affects fundraising.

Lawyers?
A lawyer is not necessary, but as with all things in life, getting a pro to help you can be really useful.
The problem is that there are a lot of lawyers out there, but very few that have much training or experience in nonprofit laws.
If you can find one that isn't already maxed to capacity (raising my hand on that!) and he or she is interested in your work, by all means ask them to be on your board!

Resources
This podcast
Nolo Press… How to Form a Nonprofit Corporation (plus California-specific guide)
Alliance for Justice's Nonprofit Advocacy Project (afj.org)
The Pro Bono Partnership (probonopartner.org)

Closing

Email me with questions and suggested topics
AP audio & written guides coming soon
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.

Nonprofit Law Podcast #1: The lay of the land

2007-06-12T11:14:00.000-07:00

The lay of the land

Download: Nonprofit Law Podcast #1 (mp3, 05:08)

Shownotes:

tim-mooney.com
More about Tim
Contact me with ideas on future topics

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.

Nonprofit Law Podcast Promo

2007-05-31T13:47:00.000-07:00

Coming in June 2007... the Nonprofit Law Podcast with Tim Mooney.

Download: Nonprofit Law Podcast Promo (mp3, 00:30)