501(c)(3): To Be or Not To Be?

Just because an organization does good work, it doesn't necessarily qualify for tax-exempt charitable status. Nor does it have to incorporate. Attorney Anthony Mancuso, who wrote the book on forming a nonprofit corporation, answers some frequently asked questions about whether a group can -- or should -- become a 501(c)(3). He also has advice on dealing with one of the trickiest tasks that a new organization will face -- choosing a name.

Contributions and Premiums

The IRS recently revised the regulations regarding goods and services that a charity may offer in exchange for contributions. Attorney Pamela McAllister explains what the new rules mean for 501(c)(3) organizations and their donors.

E-Advocacy: Lobbying on the Internet

The IRS continues to weigh specific rules governing Internet advocacy by nonprofits. In the meantime, the Alliance for Justice has prepared its own plain-language guidelines for 501( c)(3) organizations that use the Internet to lobby, garner support for a legislative agenda, or pursue other political activities.

Global Dimensions of Nonprofit Law

The legal treatment of charitable organizations in different countries presents a daunting challenge to international funders. Globalization and cross-national grantmaking will require changes in the laws of almost every nation.

Hiring Independent Contractors

Workers aren't independent contractors just because you say they are. Courts and government agencies use a variety of legal tests to determine worker status. You should be using those same tests to classify the people who work for your organization. Attorney Stephen Fishman tells how to avoid some common mistakes and stay out of hot water with the IRS.

Inside Form 990

It's the annual return that nonprofits file with the IRS. It's also a source of public information about your organization— and organizations like yours. Peter Swords describes what the Form 990 reveals about your finances and operations, and ho you can use the 990 as an information resource.

IRS Nonprofit Audit Targets

Nonprofits frequently make mistakes filling out their Form 990. Tax authority Andrew Dzamba tells which sections of the form the IRS is most likely to scrutinize-and which activities are most likely to trigger an audit. He also offers ten pointers for avoiding common tax errors.

Keeping Your Board Above Board

In the wake of recent corporate scandals, Congress has imposed strict new standards for the governing boards of public companies. Attorney Patrick O'Hare argues that nonprofit boards would do well to adopt similar standards--especially in regard to certification of financial statements, compensation of senior executives, and financial officers' code of conduct.

Legal Structures for Business Ventures

Should a nonprofit corporation form a subsidiary when it starts a business venture? Not necessarily. Creating a subsidiary can protect the parent corporation from liability and might attract new revenue. But keeping the venture in-house can save start-up costs and assure greater control. Brad Caftel, of the National Economic Development and Law Center, explains the pros and cons of both approaches.

Lobbying by Public Charities

How much latitude does a 501(c)(3) organization really have when it comes to influencing legislation and public policy? Responding to an inquiry from the advocacy group Charity Lobbying in the Public Interest, the IRS has clarified the rules surrounding this contentious-and widely misunderstood-issue.

Lobbying Without Regret

Many nonprofits believe that lobbying is taboo. It isn't. In fact, directly influencing public policy may be one of the most effective ways that you can serve the interests of your clients. Here's a simple guide to the rules on legislative advocacy that should help you understand what your organization can and cannot do.

Making a Case for Nonprofit Rates

The rules governing nonprofit postal rates can seem complicated and arcane--even to the officials charged with interpreting them. Attorney David M. Levy tells what to do if the U.S. Postal Service challenges your nonprofit mailings. He shows how to evaluate the merits of the Postal Service's claim, and he outlines the steps to take when filing an appeal.

New IRS Rules for Charitable Donations

The IRS recently revised regulations dealing with the deductibility of charitable donations. Independent Sector spells out a charity's responsibility for substantiation and disclosure, and interprets the new "safe harbor" provisions for business sponsorship payments.

Public Disclosure

Nonprofits have to file information about their finances with the Internal Revenue Service. They also have to make that information public. Failing to do so can lead to legal hassles and public relations problems. Do you know what your organization must reveal -- and to whom? Do you know what impact those revelations could have on your fundraising efforts?

Restrictions on Advocacy

Opponents call it the "Silence America" amendment. A Republican-sponsored measure would place severe restrictions on federal grantees who use non-federal money for lobbying or other advocacy efforts. A broad-based coalition of charitable groups is mounting a vigorous campaign to defeat the amendment, which could seriously jeopardize the ability of nonprofits to represent clients and influence public opinion.

Tax Deductions for Volunteers

Volunteers who contribute their time to nonprofits may treat certain expenses as charitable deductions. Nonprofit tax guru Conrad Teitell explains what they are.

Used Car Donations -- New Guidance from the IRS

Used car donations are heavily promoted as a way for taxpayers to dispose of unwanted vehicles, assist worthy nonprofits, and receive a generous deduction. Tax law guru Conrad Teitell reports on a new ruling from the IRS regarding charities' use of authorized agents in these often misunderstood transactions.