Category Archives: Nonprofit Law
EZ Does It, or Not: The New Form 1023-EZ for Nonprofits
Achieving tax-exempt status as a 501(c)(3) nonprofit organization has always been an arduous process, with numerous checks and double-checks built in by the Internal Revenue Service to prevent the fraud that the nonprofit sector seems to attract. Now the IRS has taken a major step to streamline the process, but not everyone is thrilled… Read More »
Reporting Child Abuse: What is Your Duty?
Consider the following scenarios: • Parents tell the pastor they believe, based on examination and the strange behavior of their 2-year-old daughter, that she was molested by her Sunday School teacher. • A volunteer tells the pastor she has seen an adult Praise Factory worker take the same 3-year-old child to the bathroom alone… Read More »
Common Pitfalls to Avoid in Hiring and Firing
In our tight economy, hearing “You got the job!” may be one of the most thrilling moments a person can have, while hearing “You’re fired!” may consequently be one of the scariest moments. As an employer, you hold in your hand the fate of your employees and the fate of dozens of well-qualified potential… Read More »
The Benefits of a Registered Agent
A corporate entity of any kind is what the law refers to as a “legal fiction.” It technically does not exist, at least not on its own. It is a fiction; a story that must be told and re-told. When the story stops being told, the corporation becomes a pretense and all the things… Read More »
Unrelated Business Income Tax Primer for Nonprofits
What do all the following scenarios have in common? A nonprofit youth camp leases its facilities during the off season for weekend business conventions; a homeless shelter forms a joint venture with private investors to raise money for the construction of a new facility; a church sells Christmas trees at twice their cost to… Read More »
New Fair Labor Standards Act Changes to Take Effect December 1, 2016
The Department of Labor recently issued significant and sweeping salary threshold changes to the Fair Labor Standards Act (FLSA) through its Final Rule, published on May 18, 2016. The Rule is set to go into effect on December 1, 2016. These changes are the result of a Presidential Memorandum issued by President Obama in… Read More »
BREAKING LEGAL NEWS: Hobby Lobby and What It Means for Churches and Nonprofits
The Supreme Court recently delivered a decisive, though limited, victory for religious liberty in its decision in Burwell v. Hobby Lobby Stores, Inc. In a 5-4 decision, the Supreme Court held that the Department of Health and Human Services’ (HHS) contraceptive mandate violates the Religious Freedom Restoration Act (RFRA), a statute that was passed… Read More »
What You Don’t Know Will Hurt You: Myths and Misconceptions About Church/Nonprofit Employment Liability
Lawsuits alleging wrongful employment practices are the fastest-growing area of civil litigation today. In fact, according to church and non-profit insurers, well over half of the claims annually stem from employment problems such as wrongful termination, discrimination, sexual harassment, disability, or other employment related claims. Unfortunately, many churches and nonprofits are unaware or treat… Read More »
Granting Money from a U.S. Charity or Church to a Foreign Individual or NGO: Substantial Risks and Best Practices
Many times, conducting charitable work necessitates broadening an organization’s reach, which often in turn requires working outside of the United States. Unfortunately, while these endeavors are exciting, they are complicated and risky for the churches and nonprofit organizations who are involved. Of the many types of risks involved, one of the primary areas involves… Read More »
To Merge or Not to Merge: That is the Question
Increasingly, churches and nonprofits are thinking about mergers and “acquisitions” due to the challenging financial times, increased tax exempt regulations and aging membership/decreased donations. While there appear to be some resources which discuss whether a church or nonprofit should merge or not, there is little guidance about practical applications and/or how to legally effectuate… Read More »
