The concept of who owns a nonprofit organization can be hard for some to grasp, especially given that the answer is, “No one…and everyone!” We encounter this confusion with new clients on a fairly regular basis. And, given people’s understanding of how basic business operates, it is understandable. In order to fully appreciate the concept of [...]
Answers to Reader Questions (July ’09)
At the end of every newsletter, we put out the call for “topic requests”. We have used quite a few reader questions or topic suggestions for article topics. Some questions or topics do not require a whole article to answer or discuss. We save those to make a multi-topic article from time-to-time. That’s what we’re going to [...]
Charitable Solicitations – Time to Get Compliant!
Charitable Solicitations Registration. “Never heard of it,” you say. Well, you are not alone. As astounding as it may seem, estimates of noncompliance range from 85-95% of charities and nonprofits nationwide. This level of noncompliance has persisted primarily because of 2 reasons: 1) lack of communication between state agencies and 2) grace. But, the times…they [...]
Your 2009 Nonprofit Survival Guide
You’ve seen the news. You know it’s tough out there. Just this morning I saw the following headlines on my Chronicle of Philanthropy RSS feed: “Charitable Donations Fell by Nearly 6% in 2008″, “Ford Foundation Offers Buyouts to One-Third of Employees”, and “Robert Wood Johnson (Foundation) Offers Buyout to 40% of its Employees”. Tough stuff [...]
Public Charity vs. Private Foundation
Tonight’s title match: In the red corner, numbering 948,954, representing over half of all 501(c)(3) organizations, are public charities. And in the blue corner, numbering 108,594, having increased 54% since 1998, are the 501(c)(3)s known as private foundations. Both competitors bring a long and varied history into the ring. Though greatly outnumbered by public charities, [...]
How to Pay Your Nonprofit’s Staff
Last week we looked at some key points regarding nonprofit executive compensation. This week, we want to take a closer look at best practices for paying everyone else your organization employs. Payroll for nonprofits is a complex issue already. Certain rules and exceptions apply that are different than what applies to for-profit payrolls. As if [...]
Nonprofit Executive Compensation
Nonprofit executive compensation tops the current list of IRS hot button issues. A few weeks ago we talked about the fact that the IRS is ramping up its oversight and enforcement of nonprofit executive compensation. With all the rancor surrounding executive perks and bonuses on Wall Street, expect that populist sentiment to spill over into [...]
Charitable Activities in a Foreign Country
The issue of a charity having operations in a foreign country is rather complex, one that involves oversight not only by the Internal Revenue Service, but also Homeland Security. It is fraught with pitfalls that can only be avoided if you understand the rules. The Foundation Group has worked with thousands of 501(c)(3) clients with [...]
A Tale of Two Nonprofit Websites
Once upon a time, there were two websites, each belonging to a different charity. Our tale follows the adventures of these websites. The first website…we’ll call it “the good site”…was considered a real asset to its owner. While not fancy or flashy, it was nice to look at and was obviously well taken care of. [...]
How to Protect Your Nonprofit’s Board Members
Your board of directors is one of the most important assets your nonprofit has. Assuming they understand their role and are there for the right reasons, your board members provide invaluable insight, direction and oversight. They volunteer their time and expertise, usually for little more than a pat on the back. They also assume a [...]
