501(c)(4) Social Welfare Organizations
Nonprofit Law Blog
by Gene Takagi
2d ago
501(c)(4) is the second most common basis of tax-exemption after 501(c)(3). 501(c)(4) social welfare organizations include several well-known advocacy organizations including the Sierra Club, the ACLU, Planned Parenthood, the NRA, and AARP. However, the majority of 501(c)(4) organizations – an estimated 85 percent – do not engage in  issue advocacy, lobbying, support for candidates and ballot initiatives, and partisan voter registration, education, and mobilization. See Nonprofit Political Engagement: The Roles of 501(c)(4) Social Welfare Organizations in Elections and Policymaking. To qu ..read more
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Nonprofit Tweets of the Week – 2/3/23
Nonprofit Law Blog
by Gene Takagi
3d ago
Stay informed of the week’s notable events and shared resources with this curated list of Nonprofit Tweets of the Week. Notable Events of the Week: “After Tyre Nichols Death, Officials’ Moves Reflect a Shift in Handling Police Violence With cameras nearly everywhere, and residents wary, the authorities are moving faster and speaking critically when officers are accused of beatings.” NY Times “The number of Russian troops killed and wounded in Ukraine is approaching 200,000, a stark symbol of just how badly President Vladimir V. Putin’s invasion has gone, according to American and other Wester ..read more
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501(c)(3) Operational Test
Nonprofit Law Blog
by Gene Takagi
4d ago
To be or stay exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be operated exclusively for one or more of the exempt purposes described in section 501(c)(3) (“exempt purposes”). The first part of a compliance analysis with respect to this requirement referred to as the Operational Test is to examine whether the organization is actually operating consistent with the exempt purposes stated in its articles of organization. The second part of the compliance analysis is to examine whether it is operating exclusively (interpreted in the regulations to mean operating ..read more
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Nonprofit Tweets of the Week – 1/27/23
Nonprofit Law Blog
by Gene Takagi
4d ago
Stay informed of the week’s notable events and shared resources with this curated list of Nonprofit Tweets of the Week. On this day in 1945, Auschwitz was liberated. Today, the world marks International #HolocaustRemembranceDay. We can say “never again” all we want, but only constant effort to defend universal human rights has a chance of making that ambition a reality. Human Rights Watch Notable Events of the Week: “For Asian Americans across the United States, the holiday season was supposed to be about getting together, nurturing bonds, dancing and splurging on festive treats. The merrime ..read more
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Entering into a Fiscal Sponsorship Agreement
Nonprofit Law Blog
by Gene Takagi
2w ago
Fiscal sponsorship can be an effective and efficient alternative to starting and operating a new nonprofit organization. But there are great variations in how fiscal sponsorship relationships are established and memorialized in a written agreement. One of the first areas of confusion is who enters into the agreement with the fiscal sponsor. These are the common possibilities: Nonprofit organization without tax-exempt status Unincorporated association without tax-exempt status Individual For-profit entity Nonprofit organization with tax-exempt status Nonprofit corporation without tax-exempt s ..read more
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Nonprofit Tweets of the Week – 1/20/23
Nonprofit Law Blog
by Gene Takagi
2w ago
Stay informed of the week’s notable events and shared resources with this curated list of Nonprofit Tweets of the Week. Notable Events of the Week: “The Biden administration began “extraordinary measures” Thursday to prevent the federal government from breaching its debt limit and hurtling toward default, a grim scenario with the potential to destabilize markets and devastate the economy.” Washington Post “If Affirmative Action Ends, College Admissions May Be Changed Forever Schools may need to rethink everything, including recruitment, scholarships, standardized testing and alumni preference ..read more
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Nonprofit Governance: Board Composition
Nonprofit Law Blog
by Gene Takagi
2w ago
A nonprofit corporation’s board composition is a critical part of its governance. And many nonprofits devote substantial resources (including time) to development of a skills and background matrix, recruitment, and orientation. But a great many nonprofits do not. Too often, board members are simply asked to think of good people to invite or the executive is expected to provide all of the suggested candidates, and little resources are invested in cultivating future board members. For a nonprofit whose leaders, employees, volunteers, and beneficiaries value equity, or for a nonprofit whose missi ..read more
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Nonprofit Tweets of the Week – 1/13/23
Nonprofit Law Blog
by Gene Takagi
3w ago
Stay informed of the week’s notable events and shared resources with this curated list of Nonprofit Tweets of the Week. Notable Events of the Week: “House Republicans are set to steer the country toward a series of fiscal showdowns as they look to force the White House to agree to massive spending cuts, threatening a return to the political brinkmanship that once nearly crippled the economy and almost plunged the U.S. government into default. The prospect for a catastrophe rose dramatically after conservatives brokered a deal with Rep. Kevin McCarthy (R-Calif.) that clinched his election as t ..read more
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Nonprofit Radio: Gene & Amy’s 2023 Outlook
Nonprofit Law Blog
by Gene Takagi
3w ago
I recently joined fellow Nonprofit Radio contributor Amy Sample Ward in conversation with host Tony Martignetti about what we expect to see in the new year. Listen to the podcast here. Our esteemed contributors, Gene Takagi and Amy Sample Ward, reveal what they’re thinking about for the New Year. We’re talking about Twitter, donor advised funds, fiscal sponsorship, and illegal activities. Gene comes to us from NEO Law Group, and Amy is CEO of NTEN. Twitter Amy started us off with the timely topic of nonprofits and Twitter. Should nonprofits stay on or leave? What are some of the risks now th ..read more
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Online Fundraising: California Proposed Regulations – Article 1
Nonprofit Law Blog
by Gene Takagi
1M ago
In 2021, California passed a new set of laws (referred to as AB 488) regulating charitable crowdfunding that go into effect on January 1, 2023. The state’s Department of Justice (DOJ) initially proposed regulations implementing AB 488 in May 2022, but following comments and feedback at a public hearing in July, the DOJ proposed modified regulations on November 21, with a comment period that ended on December 7. There have been substantial revisions. Not surprisingly, the DOJ proposes to delay the effective date of the new and modified regulations to January 1, 2024. Below are some ge ..read more
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