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More than half of high net worth individuals plan to leave some of their fortunes to charity, according to a recent survey, and nine of 10 are involved in some kind of philanthropy. Millionaires typically give about 7 percent of their annual...

The IRS has four categories under Sec. 509 that allow an organization to be a public charity, but the two most common are 509(a)(1) and 509(a)(2). The characteristics of an (a)(1) public charity were discussed in previous articles. This article...

An organization must be able to pass an Internal Revenue Code test to be considered a public charity. The purpose of the test is to help assure that a 501(c)(3) organization has sufficiently broad public support to be classified as a public...

To be a public charity, an organization must meet one of the Internal Revenue Code Section 509(a) tests. This article focuses on the first listed test, Section 509(a)(1), and the ramifications for a charitable organization described in this...

Internal Revenue Code Section 501(c) lists 29 different types of nonprofit organizations. But the vast majority of tax-exempt organizations are those described in Section 501(c)(3) and have a charitable, religious, educational or scientific...

What are the biggest charities in the United States? In one of its famous lists, Forbes magazine has ranked the 50 largest U.S. charities based on private donations for 2013, the last year that complete figures are available. Donations can be...

Although each board’s involvement in its not-for-profit agency’s operations varies from situation to situation, all boards share a mandate to exercise fiscal responsibility. Certainly, complying with self-dealing rules and following...

A business plan is like a road map. It can help you get where you’re going. It also can tell you that it may not be a good idea to begin the journey. Whether it’s in the for-profit or nonprofit world, money is the fuel that provides...

Nonprofit organizations are not any safer from fraudulent activity than for-profit companies – as two recent cases at respected charities testify. The controller of the Hereditary Disease Foundation was recently charged with embezzling...

Dec. 26, 2014, will be marked by more than gift returns this year. The new Office of Management and Budget “Super Circular” goes into effect on that date, with the goal of strengthening federal grant making. Published last year, the...

A nonprofit’s financial management system involves much more than tracking money in and out. Your ability to deliver services effectively rests upon a solid financial structure. Even the best organizations have gaps in their financial...

Your mission is the reason your organization exists. Staff, resources and community support are dedicated to addressing an important social issue. The key question is: Are you meeting your mission effectively? Take your evaluation deeper and...

One of the most significant costs for many nonprofits is people. Volunteers can only do so much, and to grow your organization and maintain consistent services, people need to be paid. Whether it’s an administrative position, a program...

Nonprofit organizations have struggled enough through the economy the past five years without having bogus charitable groups luring and ripping off potential donors. In a 2013 case in Tennessee, a con artist bilked nearly $24 million in assets out...

Many nonprofit managers regard budgeting as a necessary evil that must be done to satisfy the board of directors and funders. In addition to the chore of gathering the financial data, there is often an uneasy feeling triggered by forecasting the...

The size of gifts and the average amount of gifts donated online continue to grow, though online giving still represents only a small percentage of overall giving. At least six organizations last year had an online donation in excess of $100,000,...

To apply for tax-exempt status, a nonprofit organization now has to fill out only a three-page form – instead of a 26-page one. Up to 70 percent of all applicants would qualify to use the new streamlined form.In July, the IRS introduced the...

If a tax-exempt organization engages in a business that is unrelated to its primary purpose, the general rule is that income will be considered unrelated business taxable income and any net income will be subject to the unrelated business income tax...

Many tax-exempt organizations allow for-profit entities to use the organization’s name or logo to market goods and services. Often, these agreements are structured as royalties because royalties are generally excluded from the definition of...

Many tax-exempt organizations publish magazines or other periodicals that contain editorial material related to the organization’s exempt purpose. Often, these periodicals also contain commercial advertising. When the advertising activity...