Corporate
Where to Incorporate?
An early decision founders of new non-profit organizations must make is where to incorporate. A U.S. charitable, religious, or educational organization has its choice of incorporating in any of the 50 states as well as the District of Columbia. With this many choices, founders may ask if it is advantageous to incorporate in one state over another. […]
Want to Move Your State of Incorporation?
Recent IRS Guidance Made it Easier Has your organization moved from the state it was incorporated? If so, you may want to consider re-structuring your legal entity under the new guidance issued by the IRS. In Rev. Proc. 2018-15, the IRS announced that a new exemption application is not required if a domestic tax-exempt organization […]
Part 2: Whether to Incorporate as a Nonprofit or a For-Profit
Part 1: Whether to Organize as a Nonprofit or a For-profit
Constitution and Bylaws
Does Your Church Need Both? Sometimes when we analyze governance issues for our clients, we discover that they have two sets of governing documents: a constitution and bylaws. “Constitution” is the title most commonly associated with the governing document of an unincorporated association, whereas “bylaws” govern a corporation. One of the main reasons churches have both […]
Board Term Limits – Pro and Con
We have had a number of clients ask about whether it is mandatory to include term limits in their nonprofit bylaws. The arguments for and against term limits are equally valid, and we suggest that each board must make its own decision about whether term limits are essential to the board’s governance function. Those who […]
Social Enterprise Part II: Business Entities and Hybrids
This is the second installment of a two-part series for nonprofit organizations looking to generate earned income from social enterprises. Here, I will offer advice for deciding what kind of entity is best suited for a particular organization’s needs. The first part in the series covered unrelated business income tax. I recommend organizations begin here because the […]
Carefully Review Correspondence about Annual Minutes
If you own or represent an Illinois corporation, you may have received correspondence about your annual minutes that looks like it is from a government agency. In all likelihood, the form is not from a government agency, but rather a private business that purports to prepare annual minutes. The correspondence that we received includes a […]
Social Enterprise Part 1: Understand UBIT
Alliance for Children and Families, June 15, 2012 Embarking on Social Enterprise: Part One Introductory guide for understanding unrelated business income tax Given the current reality of dwindling government resources, many nonprofit organizations are exploring new revenue streams. Opportunities for generating earned income from social enterprises are as varied as nonprofits themselves. Earned income can […]
Conflicts of Interest: Safeguard Your Organization
Don’t Get Hoodwinked Safeguard your agency with vigilance around conflicts of interest Any board, whether it is complacent or compliant, can be hoodwinked into approving transactions that are obviously conflicted, not recognizing that the board member sitting across the table is taking unfair advantage of the organization.