Category: Non-Profit

Your nonprofit is “charitable”…right?

Here’s what we already know: In order for your nonprofit to obtain 501(c)(3) tax-exempt status from the IRS, it must be organized for charitable purposes. What we may not realize: That some Michigan cities and townships are closely scrutinizing organizations’ “charitable purposes” and as a result, there has been a growing number of nonprofits facing

Help is on the way! Nonprofits and Fiscal Sponsorship

When discussing the application for federal tax-exempt status, we are often asked this common question: When will I be able to start taking donations? Certainly, you can start accepting “donations” at any time. However, the more important question to ask is when will my donors be able to write all or a portion of their

Unintended consequences: Is your nonprofit “profitable”?

Many believe that their nonprofit’s 501(c)(3) tax-exempt status automatically and perpetually renders their organization’s activity tax-exempt. However, this is not necessarily true. Certain tax-exempt organizations are liable for tax if they have what is referred to as unrelated business taxable income (UBTI). UBTI for a 501(c)(3) organization generally refers to any income earned by the

Staying on the straight and narrow: Tax-Exempt Organizations and Political Activity

We are knee-deep in election season! This is a stimulating time at the national, state and local levels as the November election is fast approaching. Soon, we will be heading to the polls to vote for school board members, judges, county clerks, state senators, congresspersons and President of the United States. Bearing that in mind,

“Mission Drift”: Losing Your Grip!!!

It is relatively common for a 501(c)(3) nonprofit organization to unintentionally drift away from its mission. This concept is referred to as “Mission Drift”. There are a number of signs that reveal an organization is suffering from this problem, including: large turnover of board members and/ or staff; obscurity as to what your organization’s mission

Keeping your hands out of the cookie jar: does your nonprofit have a conflict of interest policy?

The IRS has an oversight role regarding charitable organizations- nonprofit organizations with tax-exempt status. Accordingly, we consistently remind founders and directors of nonprofits: not only do you have to work to obtain tax-exempt status, but you also must work to KEEP it. One of the major components to ensuring you do not jeopardize your status

Check out this awesome opportunity for nonprofits!

The Capacity Building Program will provide selected community-based organizations with networking opportunities, personalized support for their organization’s need and priority access to workshops that will address grant writing, budgeting, volunteer management, recruitment and other skills. The deadline to apply is 5 p.m. Thursday November 19, 2015. Learn more by clicking here ! *Please read the

You got it, but can you keep it? Maintaining 501(c)(3) status…

As quickly as you can obtain 501(c)(3) tax-exempt status for your organization, you can lose it. In addition to failing to comply with annual reporting requirements, there are certain activities that can jeopardize your 501(c)(3) status. Two of the top problematic activities we see 501(c)(3) organizations participate in are “political activity” and “lobbying”. Let’s talk

Check out this piece on changes to Michigan’s Nonprofit Corporation Act!!!

Take a look at this article detailing the recent changes to the Nonprofit Corporation Act. The amendments were made to reflect current nonprofit practices and also make the Act more closely parallel to the State’s Business Corporations Act. One of the new provisions expands nonprofit directors’ indemnification to include paid directors and protects all directors

You want tax-exempt status? You have to earn it!

C&G’s tip of the week: You want tax-exempt status? You have to earn it! You have been thinking about starting that non-profit for quite some time. Now the time has come- you are ready to move forward with getting the organization started and then filing for tax-exempt status (also known as 501(c)(3) status) with the

Kresge gives $1.6 million to local non-profits in efforts to revitalize neighborhoods

Last week, Kresge Foundation announced that it awarded a total of $1.6 million to 18 different non-profit organizations in a continued effort to help strengthen Detroit neighborhoods. The Kresge Innovative Project is aligned with the Detroit Future City strategic framework, a long-range blueprint for city and neighborhood revitalization in Detroit initiated in 2013. With all

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