TOP 12 COMPLIANCE ISSUES
FOR NONPROFITS
Virginia E. Howard, Esq.
Walker & Reed, LLP
215 W. Franklin Street, 5FL
Monterey, CA 93940
vhoward@walkerandreed.com
Initial Compliance Review
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REVIEW OF GOVERNING DOCUMENTS
A A i l
A. Articles of Incorporation
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Status as Member vs. Non‐Member Organization?
If a Member organization should it be converted
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to a non‐Member organization?
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Do Articles Limit the Number of Directors?
Not uncommon for older organizations. Amend if needed!
Not uncommon for older organizations. Amend if needed!
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Do Articles Contain all Provisions Required by IRS to meet “Organizational Test” for tax exempt status under IRC Section 501(c)(3) or other applicable exemption?
( )( )
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‐ Purpose Clause ‐ Dissolution Clause
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If Articles include a Purpose Statement is it still Accurate?
If Articles include a Purpose Statement is it still Accurate?
Review of Governing Documents ( cont.)
B. Bylaws A. B
B. C.
D.
E.
F. G. H
H. I.
J.
K.
Outdated? Corporations Code controls where silent.
Is Purpose Statement Still Accurate?
Is Purpose Statement Still Accurate?
Do bylaws accurately reflect how entity is operating?
How directors are actually elected?
How officers are actually elected and positions?
Do Bylaws include required restriction on number of “interested” directors
and is entity in compliance?
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No more than 49% may be persons who are compensated IN ANY WAY
by the corporation or persons who are related to persons who are compensated by the corporation
Is quorum requirement too high or too low?
One‐fifth but no less than 2 permissible but NOT recommended!
Does Board understand the quorum requirement?
“Authorized” directors vs. Directors then in office
Do Bylaws provide for “ex officio” non‐voting directors?
Are there committees with members who are not directors? If so are these
Are there committees with members who are not directors? If so, are these committees “exercising the authority” of the Board or advisory?
Are notice periods for meetings too long?
Do bylaws permit notice by email?
Is Board complying with the law in its operations
No pro
No proxy voting permitted
oting permitted
No such thing as “action by email” (but, yes, unanimous written consent)
REVIEW OF STATUS
1. IS NONPROFIT IN GOOD STANDING WITH SECRETARY OF STATE? Check www.sos.ca.gov
SECRETARY OF STATE? Check www sos ca gov Business Search. Business Search
Active vs. Suspended
2 IS TAX EXEMPT STATUS RECOGNIZED BY IRS?
2.
IS TAX EXEMPT STATUS RECOGNIZED BY IRS?
SEARCH AT: www.irs.gov/Charities‐&‐Non‐Profits/Search‐for‐Charities
Exempt Organizations Select Check
Exempt Organizations Select Check
If not, has tax exempt status been revoked? Also Check: IRS Recent Revocations and Deletions from Cumulative List
3. IS TAX EXEMPT STATUS RECOGNIZED BY FTB?
Check “Exempt Organizations List” at
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www.ftb.gov/businesses/Exempt_organizations
Review of Status (cont.)
4.
IS NONPROFIT “CURRENT” OR “DELINQUENT” WITH OFFICE OF ATTORNEY GENERAL?
OFFICE OF ATTORNEY GENERAL?
www.oag.ca.gov/Charities Charity Research Tool AND Registry Search
NOTE: May be EXEMPT from annual reporting to AG’ss office:
NOTE: May be EXEMPT from annual reporting to AG
office:
• Religious Organizations & Hospitals
• Educational Institutions (versus Educational Organizations)
• Section 501(c)(4), 501(c)(6) or 501(c)(7) organizations that do NOT hold assets in charitable trust
Initial Compliance Review (Cont.)
• Does the organization have required policies in place?
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Conflict of Interest Policy & Annual Board Questionnaire
Document Retention & Destruction Policy
Whistle Blower Policy
Policy re: Board Review of IRS Form 990
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Investment Policy Statement (if applicable)
NOT ENOUGH THAT POLICIES EXIST! Are they being read understood and followed by the Board and staff?
read, understood, and followed by the Board and staff?
The Top 12 Legal Compliance Issues
1. Compliance With Annual & Biennial Reporting Obligations
Reporting Obligations
a. Statement of Officers must be filed Biennially with California Secretary of State
b. IRS Form 990, 990EZ or 990N e‐postcard
Failure to file for 3 years will lead to REVOCATION of tax exempt
status status
c.
d.
e.
f.
g.
FTB 199 or 199N e‐postcard
AG Form RRF‐1 with copy of IRS 990
AG Raffle Reporting – Two Filings Annually!
Sales Tax Returns (if Applicable)
Fili
Filing of BOE Forms with County Assessor, if Property Tax f BOE F
ith C
t A
if P
t T
Exemption
Attorney General (AG) Reporting
AG Form RRF
Form RRF‐1
1 – BOARD SHOULD REVIEW!!!
BOARD SHOULD REVIEW!!!
• Were there any contracts or financial transactions with O&D that need to be disclosed?
• Was there any theft, embezzlement or misuse of funds which needs to be disclosed?
• Did non‐program expenditures exceed 50% of gross revenue?
• Were funds used to pay any fine, penalty or judgment?
• Did organization receive any government funding?
• Did organization hold a raffle?
AG Raffle Reporting ‐ TWO FORMS!
CT‐NPR‐1 Filed in ADVANCE for Sept 1 – Aug 31 period
(If holding raffle in Sept file by Aug 1)
CT‐NPR‐2 Due October 1 – Annual Report
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•
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Must Separately Track Raffle Proceeds
Must Track Direct Costs Associated with Raffle
90% of Raffle Proceeds MUST go to Exempt Purpose (No 50/50 Raffles)
No sale of Raffle tickets over Internet
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Persons Conducting Must be Over 18
Can’t Compensate Persons for Conducting Raffles
2. COMPLIANCE WITH AUDIT AND AUDIT COMMITTEE REQUIREMENTS
Required if Gross Revenues $2 million or more (for nonprofits required to report to Attorney General).
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Exclusive of revenue from government grants and contracts. xclusive of revenue from government grants and contracts.
Government Code §12586(e)
GIVEN DESIRE TO AVOID “ADVERSE” OR “QUALIFIED” OPINION FROM AUDITOR IT IS RECOMMENDED THAT ORGANIZATIONS SEEK AUDIT AS APPROACH IN EXCESS OF $1.5 MILLION OF GROSS REVENUES! CONSIDER BIENNIEL AUDIT EVEN IF NOT REQUIRED FOR CONSIDER
BIENNIEL AUDIT EVEN IF NOT REQUIRED FOR
ORGANIZATIONS WITH SIGNIFICANT GROSS REVENUES. •
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•
•
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Audit Committee Requirements
All members need not be members of the Board of Directors Can’t include staff members (i.e. Pres., CFO, etc.)
Chairperson of Audit Committee can’t sit on the Finance Committee
Finance Committee members can’t make up a majority of members of Audit Committee
Can only recommend hiring and firing of auditor to B d A dit C
Board. Audit Committee can’t be empowered to itt
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engage auditor but can negotiate the compensation of the auditor
of the auditor. DUTIES OF THE AUDIT COMMITTEE:
• Confer with the auditor to satisfy committee members that the financial affairs of the nonprofit
members that the financial affairs of the nonprofit organization are in order
Review the audit and decide whether to accept it
• Review the audit and decide whether to accept it • Approve non‐audit services by the independent CPA’s accounting firm, and ensure such services conform to standards in the Yellow Book issued By the U.S. Comptroller General. (Inherent Conflict of Interest in Auditors providing certain Non‐Audit
Auditors providing certain Non
Audit Services)
Services)
• See that recommendations of the Auditors ARE implemented!!!!!!
3. ADEQUATE OVERSIGHT OF FINANCIAL Q
OPERATIONS = 6 KEYS TO FINANCIAL HEALTH
1. Board Members with Finance Background
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2. Annual Budget and Comparison to Actual Performance
3. Regular Board Review of Financial Performance
(NO LESS THAN QUARTERLY!!!)
4 Long Term Financial Planning 4.
Long Term Financial Planning
Adequate Cash Reserves for Capital Improvements
and Maintenance of FF&E?
5. Good Internal Financial Controls and Accounting Systems
6 Outside Payroll Service
6.
Outside Payroll Service
ACCOUNTING SYSTEMS
AND
INTERNAL FINANCIAL CONTROLS
If Audited Financial Statements have auditors rendered a qualified opinion? If so why? And what is being done to respond to auditors’ concerns?
If Financial Statements are NOT audited:
A.
B.
Who are signatories on Bank Accounts? When are 2 signatures q
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p y
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required? Is signature policy being followed?
Are there Accounting Policies and Procedures in place? • Who handles receipt of cash and checks? • Who handles bank deposits? • Are Polices in place re: Expense Reimbursement? Receipts must be Are Polices in place re: Expense Reimbursement? Receipts must be
required!
• Is a director or Board committee reviewing bank statements and reconciling records of checks issued and cash expenditures with bank balances?
C.
Is Payroll Outsourced to Payroll Service or Done Internally?
4. ADEQUATE BOARD REVIEW OF COMPENSATION AND SELF DEALING TRANSACTIONS
AND SELF‐DEALING TRANSACTIONS COMPENSATION
a.
Compensation of President and CFO MUST be approved by Board, includes ALL CHANGES, INCLUDING EXTENSION OR RENEWAL, e cepting changes applicable to all emplo ees (i e changes in
excepting changes applicable to all employees (i.e. changes in benefits). Government Code §12856(g)
b.
q
IRS Rules Related to Excess Benefit Transactions: Required Use of Comparability Data
Directors may be PERSONALLY assessed EXCISE TAXES if approve Excessive Compensation.
Compensation
Intermediate Sanctions! Excise Taxes = 10% of Excessive Compensation up to $20,000 per Director.
All forms of compensation, cash and non‐cash, taken into consideration
IRS STANDARDS FOR BOARD REVIEW OF COMPENSATION
HOW TO CREATE REBUTTABLE PRESUMPTION THAT COMPENSATION IS FAIR AND REASONABLE:
COMPENSATION IS FAIR AND REASONABLE:
1.
2.
3
3.
4.
Approved in advance by Board or Board committee comprised of persons who do not have conflict of interest Persons with conflict of interest MUST leave the room
Must rely on “appropriate
Must rely on appropriate data of comparability.
data of comparability ”
Must adequately and concurrently document the basis for the determination
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•
•
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Within 60 days or at next meeting of Board, AND review and approve the documentation. Ratify minutes at next meeting!!! Date of approval must be reflected
Board members present and voting must be reflected
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Terms of compensation and comparability data used must be reflected
APPROPRIATE COMPARABILITY DATE
APPROPRIATE COMPARABILITY DATE
• Organization with LESS than $1 million in Gross Revenues:
Data from 3 Comparable Organizations*
Data from 3 Comparable Organizations
*Comparable Budget, Geographic Area and Sector
• Organization with MORE than $1 million in Gross Revenues:
$
Independent Compensation Survey
Internal Revenue Code §4958 Intermediate Sanction Rules APPLY TO COMPENSATION AND OTHER SELF‐DEALING TRANSACTIONS WITH DISQUALIFIED PERSONS.
DEFINITION OF DISQUALIFIED PERSON: INCLUDES OFFICERS, DIRECTORS, KEY EMPLOYEES, SUBSTANTIAL CONTRIBUTORS AND FOUNDERS
SELF‐DEALING TRANSACTIONS
Any transaction or arrangement in which a director, officer Any
transaction or arrangement in which a director officer
or key employee, substantial contributor or founder (or family member of the above) has a financial interest
•
Need for Good Conflict of Interest Policy & “Best Practices” to have Annual Board Questionnaire. (Note: Definition of “Family Member” Differs under CA Corporate Law and IRS Rules and Regulations)
•
Need for Compliance with Section 5233 of Nonprofit Public Benefit Need
for Compliance with Section 5233 of Nonprofit Public Benefit
Corporation Law
•
Need for Compliance with IRS Rules Regarding Excess Benefit Transactions
o
o
•
Need APPRAISAL when sell or lease real or personal property to or from a Disqualified Person
Board approval with full disclosure of terms of transaction and nature of conflict
NO LOANS or GUARANTIES: VERY LIMITED EXCEPTIONS!
• No loans of money OR PROPERTY!
• Exceptions: • Advances to Pay Expenses Reasonably Anticipated to be Incurred in Advances to Pay Expenses Reasonably Anticipated to be Incurred in
Performance of Duties
• Loan to Officer for Purchase of Personal Residence where “necessary” “to secure” his or her services or continued services
Compliance with §5233 of Nonprofit Public Benefit Corporation L G
Law Governing Self‐Dealing Transactions
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• Corporation must enter into transaction or arrangement for its own benefit
• Transaction is fair and reasonable to corporation at time entered into
• Board must approve in good faith
• Board must approve BEFORE transaction entered into
oa d us app o e
O
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Exception: Not reasonably practicable for Board to approve in advance and
approved by committee of the Board or a person “authorized’ by the Board to
approve provided Board ratifies action taken • Board must have knowledge of ALL material facts concerning:
o Terms of Transaction
o Nature of relationship or conflict
•
Board must determine, after reasonable investigation, that corporation could not have obtained a more advantageous arrangement with reasonable effort under the circumstance
Intermediate Sanctions as to Self‐Dealing Transactions:
• Excise Tax of 25% of Excess Benefit where transaction is corrected within the “taxable period” (i.e. period from when transaction occurs through earlier of date IRS assesses excise taxes or issues g
notice of delinquency) • Excise Tax of 200% of Excess of Benefit if not corrected within the taxable period, but may be abated if corrected within 90 day corrected period • Disqualified persons who participated are jointly and severally liable for excise taxes
• Excise of 10% may be imposed on directors who “knowingly participated” (i.e. approved transaction) up to $20,000 per director. Must “oppose” to avoid liability. (Note, tax on directors is imposed only if 25% excess tax is assessed on disqualified person)
5.
PROPER REPORTING OF UNRELATED BUSINESS INCOME
BUSINESS INCOME Unrelated Business Income (“UBI”) is Subject to Unrelated Business Income Tax (“UBIT”)
Tax (
UBIT )
Is the organization earning revenue from a trade or business that is unrelated
to its exempt purposes? Must be “substantially”
to its exempt purposes? Must be substantially related to be exempt from related to be exempt from
UBIT!!!
COMMON MISCONCEPTION: Revenue isn’t subject to income tax as long as USED for an exempt purpose.
Must report Unrelated Business Income ANNUALLY on:
IRS Form 990‐T and FTB Form 109 if more than $1,000 and pay estimated tax IF tax due is more than $500 a year
AND MUST PAY TAXES ON THIS INCOME!!!!
AND MUST PAY TAXES ON THIS INCOME!!!!
UNRELATED BUSINESS INCOME DEFINED
• Income from a Trade or Business
Any activity that generates income from the sale of goods or
services. services
Exceptions: 1.
2.
3.
•
Trade or Business Operated Substantially with Volunteer Labor Selling of Donated Merchandise (Thrift Shops) meeting IRS requirements
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t
Bingo meeting certain IRS requirements
Regularly Carried On
Not an occasional activity
Not an occasional activity • Not Substantially Related to Exempt Purposes:
o Activity
Activity conducted must make an important contribution to the conducted must make an important contribution to the
exempt purposes of the organization. o Critical Questions: Does the activity further the exempt purposes of the organization other than to raise funds for its operations? operations?
o Is it an activity regularly carried on by “for profit” enterprises?
6.
Adequate Board Oversight of Employment P ti
Practices
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Employee Manual Employee
Manual
BARE MINIMUM: Employment Offer Letters with Acknowledgement of “At Will” Status and Anti‐
Harassment Policy
Harassment Policy Proper Worker Classification o
o
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Employee vs. Independent Contractor
Exempt vs. Non‐Exempt Employee
Workers’ Compensation Insurance
Remittance of Payroll Taxes to IRS (Nonprofits are
Remittance of Payroll Taxes to IRS (Nonprofits are Only Exempt from FUTA)
7.
ADEQUATE BOARD OVERSIGHT OF EXPENDITURE OF RESTRICTED FUNDS
EXPENDITURE OF RESTRICTED FUNDS
 Restricted
Restricted as to Purpose or Activity
as to Purpose or Activity
 Restricted as to Timing of Expenditure
Restricted as to Use on Current Basis
 Restricted as to Use on Current Basis
(i.e. Endowment Funds)
True Endowments vs. Quasi‐Endowments
BEWARE OF CREATING ENDOWMENT FUND ASSETS UNINTENTIONALLY. INSTITUTIONAL SOLICITATION IS PART OF THE “GIFT
OF THE GIFT INSTRUMENT.
INSTRUMENT”
BEWARE OF COMMINGLING FUNDS AND COMMUTING UNRESTRICTED FUNDS TO RESTRICTED FUNDS AND QUASI‐
ENDOWMENT FUNDS TO TRUE ENDOWMENT FUNDS.
UPMIFA Spending Rule (Probate Code §18504)
Uniform Prudent Management of Institutional Funds Act
Charity may “appropriate for expenditure” (i.e. spend) only so much of endowment fund as it determines is “prudent” taking into consideration (the “7
into consideration (the 7 factors
factors”):
):
1. Duration and Preservation of the Fund
2. Purposes of the Charity and the Fund
3. General Economic Conditions
4. Possible Effect of Inflation or Deflation
5. Expected Total Return from Charity’s Investments
6. Charity’s Other Resources
7 Charity’s Investment Policy 7.
Ch it ’ I
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Major Departure from Prior Law!! Adopted January 1, 2009.
UNIFORM PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS
• C
Creates REBUTTABLE PRESUMPTION
REBUTTABLE PRESUMPTION of IMPRUDENCE if a f IMPRUDENCE if
nonprofit expends MORE THAN 7% of total fair market value of endowment funds assets in a year, calculated based on 3‐
year rolling average
• No Presumption of Prudence Just Because Charity Spends f
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Less Than 7%
• Nonprofits can REBUT the presumption by Board resolutions that clearly reflect need for, and rationale behind, spending more than 7% based on evaluation of the 7 factors!
• Under
Under prior law –
prior law Uniform Management of Institutional Funds Uniform Management of Institutional Funds
Act (UMIFA) – nonprofits could only spend income and unrealized appreciation
8.
Adequate Board Oversight of Investments
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 Conflicting Standards of Care under UPMIFA §18503 and Corporations Code §5240
Corporations Code §5240
• Total Portfolio Approach vs. Individual Investment Approach
to Evaluating Risk • Must Recommend Compliance with Both!
 UPMIFA and §5240 Standards of Care applicable to ALL investment funds and NOT just Endowment Funds
investment funds and NOT just Endowment Funds
 §5240 of Nonprofit Public Benefit Corporation Law
In investing and reinvesting the assets of a nonprofit the Board shall Avoid Speculation, looking instead to permanent disposition of funds considering the probable income as well as probable safety of corporations capital
UPMIFA Probate Code §18503:
•
Must manage and invest funds in good faith and with care an ordinarily prudent Must
manage and invest funds in good faith and with care an ordinarily prudent
person would exercise in like circumstances
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May incur only reasonable and appropriate costs: Investment Management Fees must be reasonable!!! (Note commissions for trades!)
must be reasonable!!! (Note commissions for trades!)
•
Decisions about individual assets must be made not in isolation but rather in the context of the portfolio of investments as a whole and as part of overall investment strategy and return objectives reasonably suited to the fund and the nonprofit
strategy and return objectives reasonably suited to the fund and the nonprofit
•
Must have Guidelines for Management (i.e. Investment Policy Statement) that addresses:
1.
Parameters of Asset Allocation
Parameters of Asset Allocation
2.
Procedures for Selecting and Monitoring of Investment Managers/Advisors
3.
Established Spending Policies
Recommend: 

Establish Investment Committee and Adopt Investment Policy Statement
No SPECULATIVE INVESTMENTS
Lessons of State of CA vs. MCAP
Lessons of State of CA vs. MCAP
State of California vs. Monterey County Aids Project
Action Brought by California Attorney General Against Directors, Officers & Executive Directors for Breach of Fiduciary Duty arising out of Misuse of Housing Endowment Created by Court Order:
 FFailure to Establish Endowment Fund (Commingled with General il
t E t bli h E d
t F d (C
i l d ith G
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Funds)
 Failure to Adopt Reasonable Investment and Spending Policies
 Failure to Observe Restrictions Placed On Use of Funds
 Failure to Document Board Decisions and Use of Funds
 Failure to Exercise Adequate Oversight of Financial Operations
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 Inadequate Internal Financial Controls – Funds Misappropriated!
 Failure to Maintain Inventory at Benefit Shop or Oversee Finances
 Failure to Take Action to Recover Diverted Funds
9. Compliance with Sales Tax Laws
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Nonprofits are NOT exempt from Sales Tax!!
Nonprofits
are NOT exempt from Sales Tax!!
ALL Sales of Tangible Personal Property subject to Sales Tax UNLESS there is an exclusion or exemption! No blanket exemption for charity auctions and rummage sales!
Sale of Food Subject to Sales Tax Based on Same Rules as Apply to For Profit Entities
Exclusions:
• Gifting of Merchandise in Exchange for Donation (e.g. tote bag)
• Sale of Tickets to Events or Tickets to Win Prizes if Prize is Not Guarantied
• Sale of Travel (e.g. hotels stays), Vacation Rentals, Personal Services (e.g. spa visits), Golf Rounds, and ANYTHING ELSE THAT IS NOT TANGIBLE PERSONAL PROPERTY
• Sales of Gift Cards or Restaurant Vouchers
Special Exemptions – ALL SORTS!
• Certain rummage sales by museums and museum auxiliary organizations • Sales by Friends of the Library organizations
• Sale of handcrafted items by organizations that provide services to the d l
developmentally disabled
ll di bl d
• Auctions to benefit homeless shelters
• Sales of food products and non‐alcoholic beverages by youth organizations
10.
Compliance with Rules Governing Solicitation and Reporting of Charitable Donations to IRS
dR
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f Ch it bl D
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t IRS
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Disclosure & Substantiation Requirements ‐ Timely Written Receipts for All Donations over $250
No Deduction Allowed Where Quid Pro Quo (i.e. Benefit to Donor)
to Donor)
o Ticket Sales ‐ Must Print on Ticket Value of Food and Wine or No Portion of Ticket Price is Deductible
o Donors May Rely on Nonprofit’s Good Faith Estimate of Value of D
M R l
N
fit’ G d F ith E ti t f V l
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Goods or Services
•
Special Substantiation and Disclosure Requirements for Donations of Vehicles and Personal Property
o
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IRS Form 8283 must be filed by Donor for Noncash Charitable Contributions with value over $500
Donor must obtain appraisal for items valued at over $5,000
Charity must sign “Donee Acknowledgment” on IRS Form 8283
11. Compliance with Prohibition on Campaigning
and Limitations on Lobbying
and Limitations on Lobbying
•
•
No Campaigning for Political Candidates is Permitted by IRC §501(c)(3) organizations!
Limitation on Lobbying Activities – Lobbying CANNOT constitute a “Substantial Part” on a Nonprofit’s Activities
o Broad Definition of “Lobbying” ‐ Influencing legislation (but doesn’t include influencing administrative rules)
Influencing Legislation vs. Educating Voters
o What is “Substantial”?
 Expenditures on lobbying can’t exceed 5% of total expenditures
 Can’t exceed 5% of total time and effort spent on the nonprofit’s activities, including time of paid staff AND volunteers
o Must Report Lobbying Activities
M tR
t L bb i A ti iti
o IRC §501(h) Election – Increases expenditure limits
o
o
o
o
20% of first $500,000 of exempt purpose expenditures
15% f
15% of next $500,000 of exempt purposes expenditures
t $500 000 f
t
dit
10% of next $500000 of exempt purpose expenditures
5% of all exempt purpose expenditures over $1.5 million up to max of $1 million
12. Compliance with Rules Governing P
Property Tax Exemption
T E
i
• Not Automatic
• Must seek Organizational Clearance Certificate from Board of Equalization (Form BOE 277)
• Must File Annual Claim Form with County Assessor
Must File Annual Claim Form with County Assessor
• BOE‐267 – First Filing
• BOE‐267A – Annual Filing Thereafter – Due by Feb 15!
• Nonprofit is RESPONSIBLE for filing EVEN IF it does not receive notice from County Assessor
• Must Report if Sublet or Allow Use of Property by Any Other Entity Must Report if Sublet or Allow Use of Property by Any Other Entity
or Person whether or not rent is paid!
• Must continue to operate for a religious, charitable, scientific or h
hospital purpose AND not allow private inurement l
ll
RESOURCES
•
CEB Advising California Nonprofit Corporations
•
California Attorney General’s Guide for Charities http //ag ca gov/charities/publications/guide for charities pdf
http://ag.ca.gov/charities/publications/guide_for_charities.pdf
•
California Attorney General’s Frequently Ask Questions p // g g /
/ qp p
http://ag.ca.gov/charities/faq.php
•
IRS Publication 557 – Tax Exempt Status for Your Organization
•
IRS Publication – 598 – Tax on Unrelated Business Income of Exempt Organizations
•
IRS Publication 1771 –
IRS
Publication 1771 Charitable Organizations, Substantiation and Charitable Organizations Substantiation and
Disclosure Requirements
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IRS Website: www.irs.gov
Resources (cont.)
Resources (cont.)
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FTB Pub. 932: Exempt Organizations Filing and Compliance
FTB Pub. 1068: Exempt Organization Filing Requirements & Fees
SBE Publication 18: Nonprofit Organizations
S
SBE Publication 61: Sales and Use Taxes ‐
bli i 61 S l
dU
Exemptions & Exclusions
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The Law of Endowments – Erik Dryburgh (Adler & Colvin)
Bloomberg BNA – Tax
Bloomberg BNA Tax‐Exempt
Exempt Organizations Portfolios Library Organizations Portfolios Library
National Council of Nonprofits www.councilofnonprofits.org
Guidestar (www.guidestar.com) (IRS 990’s and Comparability Data)
Economic Research Institute (www.erieri.com) (Comparability Data)