Posts Tagged ‘Q&A’

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 do today.  Keep sending your questions or topics and make sure that you read our blog articles for more information on other topics.  On to the questions…

Q:  Can any or all of the nonprofit’s board members live out of state?

A:  While not required by federal law, many states have residency requirements for a corporation’s board members.  No states require that all board members live in the state of incorporation, only the registered agent is required to live in-state.  Our suggestion is that at least one board member live in the state of incorporation.

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At the end of most newsletters, we put out the call for “topic requests”.  We wanted to get to some reader questions before the year ended. We will try to answer questions like these, that don’t require a whole article, from time to time. If you have article topics that you would like us to cover, email them to us at mail@foundationgroup.com or simply reply to the email newsletter when you receive it.  We cannot guarantee your question will be chosen, but we’ll try.  On to the questions…

Q) Do all donations need to be spent by year’s end?

A) The quick answer is, no. “Nonprofit” does not mean that at the end of the year there should be no money left in the account.  A 501(c)(3) organization can have money left at the end of the year. It would probably be a good idea if it can.  Money left over can go toward adding programs, improving existing programs, make up for less funding next year, etc.  Never forget that you’re still running a business (of sorts)…you gotta make more than you spend!

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