501c Nonprofit Law Blog
Nonprofit News: America’s Worst Charities (& How to Find Great Charities to Support)
CNN partnered with the Tampa Bay Times and the Center for Investigative Reporting to showcase the results of their year-long investigation to identify America’s worst charities. The story: Above the Law – America’s Worst...
read moreNonprofit News: IRS Updates
The IRS recently has released information and guidance on two topics: (1) tax relief for victims of severe storms and tornadoes in the Midwest and (2) Questions & Answers on 501(c) organizations. Tax relief for victims of severe storms and...
read moreDoing Good and Making a Profit: Benefit Corporations
Rise of the Benefit Corporation
A new type of for-profit corporation accommodates entrepreneurs that want to pursue social good, environmental stewardship and fair employment treatment in addition to profits. The benefit corporation differs from a traditional corporation in regards to its purpose, accountability and transparency.
read moreNonprofit Law Basics: Can a board member or officer of a nonprofit corporation be paid for performing work of the nonprofit?
What is a conflict of interest? When a member of a board of directors assumes office, the law requires that the best interest of the nonprofit prevail over the director’s personal or business interests. A conflict of interest is an actual...
read moreNonprofit Law Basics: Can a Texas Nonprofit Hold a Raffle?
Raffles may be considered gambling under the Texas Penal Code. Texas law allows only certain charitable and nonprofit entities to hold raffles to support their charitable causes. Only these entities are allowed to hold raffles: Religious...
read moreIRS Tea Party Targeting Scandal
The IRS apologized Friday for what it acknowledged was “inappropriate” targeting of conservative political groups in the process for applying for tax-exempt status. Details of the scandal emerged from excerpts of an investigative report...
read moreCentral Texas Nonprofit Facts
Austin has more nonprofits per capita than another other major metro area in Texas and the Southwest US…
read moreNonprofit Law Basics: Is Your Annual IRS Return Due May 15?
Is Your Annual Return Due Soon?
Each year most nonprofits are required to file an annual return with the IRS called a Form 990. The Form 990 is due on the 15th day of the 5th month after the end of the organization’s taxable year. This means that if your organization follows the calendar year, your Form 990 would be due on May 15th of each year.
Nonprofit Law Basics: What are the Benefits of having 501(c)(3) Tax-Exempt Status?
Tax exemption under Internal Revenue Code section 501(c)(3) provides a number of benefits: Exemption from Federal income tax; Tax-deductible contributions; Possible exemption from state income, sales, and employment taxes; Reduced postal rates; Exemption from Federal unemployment tax; and Tax-exempt financing.
read moreNonprofit Law Basics: Completing the IRS Form 990
Since the IRS Form 990 is due for many organizations on May 15, we have provided a cursory list of terms you will find on IRS form 990 and 990EZ.
read more
