Election seasons provide unique opportunities for 501(c)(3) organizations to engage with public policy issues and influence civic dialogue. During this period, candidates are more receptive to advocacy efforts, presenting a chance for 501(c)(3)s to highlight important issues and give a voice to the underrepresented. However, there are strict legal constraints that all 501(c)(3) organizations must adhere to. Legal Prohibitions. These rules are in force year-round, but election season brings heightened scrutiny. Accordingly, many 501(c)(3) organizations are more conservative in applying these ru ..read more

Trademark laws are designed to prevent consumer confusion and protect the rights of businesses. Among the various facets of trademark law, the dilution doctrine plays a crucial role in safeguarding the distinctiveness and prestige of well-known marks. Unlike typical trademark infringement claims, which focus on consumer confusion, the dilution doctrine centers on the preservation of a trademark’s uniqueness and value. This blog post delves into the intricacies of the dilution doctrine, its legal framework, and its implications for trademark protection. What is Trademark Dilution? Trademark dil ..read more

Tax-exempt organizations not prohibited from engaging in political campaign activities have the option of conducting such activity through a distinct, segregated fund within their organization. Doing so allows the organization to avoid tax on its political expenditures. These so-called 527 funds will be treated as a separate entity, with the funds’ earnings and expenditures not being attributed to the exempt organization itself. Instead, the 527 fund is treated as a separate Section 527 organization for tax purposes. 527 organizations are political organizations organized and operated to influ ..read more

The Johnson Amendment prohibits 501(c)(3) organizations from participating or intervening in a political campaign on behalf of (or in opposition to) any candidate for public office. This is a strict ban that does not allow for even minimal campaigning activity. Common examples of campaign intervention include: Making or soliciting contributions to or for candidates or political organizations Endorsing candidates Rating candidates Publishing or distributing partisan campaign literature or written statements Permitting the 501(c)(3)’s representatives to speak out about a candidate Otherwise usi ..read more

One of the first choices nonprofit founders must make when forming a nonprofit is choosing a corporate structure. There is no one-size-fits-all approach. Rather, the appropriate structure depends on the organization’s charitable purposes, governance needs, liability preferences, and other considerations. This decision will impact your organization’s legal requirements, tax obligations, governance procedures, and ability to raise funds. Therefore, understanding the different options and their implications is essential for laying a strong foundation for your nonprofit’s success. When choosing a ..read more

Program-related investments (PRIs) are powerful financial tools available to private foundations and public charities, allowing them to further their charitable purposes while simultaneously achieving financial returns. This blend of philanthropy and investment can be a very attractive way to make a social impact. What is a Program-Related Investment? Private foundations – as with all tax-exempt organizations – must be organized and operated primarily to further one or more exempt purposes. A program-related investment is an investment made to accomplish one or more of the organization’s exemp ..read more

International grantmaking can be an efficient and fruitful use of charitable assets. Private foundations and other charitable organizations are uniquely situated to make significant impacts on poverty, health, education, the environment, and other important causes around the globe. Often, grants can have a larger impact in foreign countries than in the United States. However, grantmakers must navigate a sometimes complex regulatory scheme to ensure funds are received by the appropriate parties and are made in compliance with the law. Understanding these challenges is crucial for any organizati ..read more

Board governance is the cornerstone of effective nonprofit management. Comprised of individuals with diverse expertise and a shared commitment to the organization’s mission, the board of directors plays a vital role in guiding and overseeing the activities of a nonprofit. The board of directors serves as the governing body of the organization, is responsible for setting strategic direction, ensures financial accountability, and safeguards the nonprofit’s mission and assets. Due to each board member’s ability to influence and control the organization, board members are legally bound to certain ..read more

Artificial Intelligence tools such as ChatGPT, Bing AI, and Google Gemini have exploded in popularity in recent years. More individuals are relying on AI to perform basic tasks and monotonous job duties, such as drafting correspondence, creating presentations, and conducting research. AI is a wonderful tool that can increase productivity and foster innovation in the workplace. However, it can also expose an organization to a breadth of business risks. In this blog, we will discuss the power of AI and how to promote ethical and safe use in the workplace. What are the Benefits and Risks of Using ..read more

In April 2024, the Federal Trade Commission (FTC) issued a final rule banning non-competes nationwide. The FTC has determined that non-competes are an unfair method of competition and thus a violation of the FTC Act. What is the Ban? The ban prohibits organizations from entering into new non-compete agreements or inserting non-compete clauses in new contracts. The rule applies to all persons working for an organization, whether paid or unpaid, and without regard to how the worker is classified under any other state or federal law. With the exception of non-competes for senior executives, exist ..read more