By Christen Lee, Esq.
Although raffles can be a great fundraising opportunity for some nonprofits, most states consider raffles to be a type of illegal gambling. Many states, including California, carve out an exception for nonprofits. The following is a brief summary of the California exception.
Charitable Raffles in California
California Penal Code section 320.5 carves out [...]

Guest Post by Gabrielle Lessard, Esq.
The recently enacted health insurance reform legislation includes a tax credit that helps many small businesses provide coverage for their employees.  Many tax-exempt non-profit organizations can also receive the health care tax credit, although at a reduced level.
To qualify, small businesses and exempt organizations must:

Have [...]

By Cecily Jackson and Jenny Kassan
In a recent Technical Advice Memorandum (TAM), the IRS determined that a major source of revenue for a 501(c)(6) trade association was unrelated business income and therefore taxable.
The trade association’s purpose was to promote a particular sport within a region.  Individuals can only play the sport at sports facilities that [...]

When you start a nonprofit, it is necessary to select from numerous options for classification at both the state and federal level.  Each option can have very different consequences, and some of the choices can be difficult to reverse.
The most well known type of nonprofit is a public charity that conducts charitable and/or educational activities, [...]

The following is an excerpt from Nonprofit Executive Compensation: Planning, Performance, and Pay, Second Edition By Brian Vogel and Charles W. Quatt, Ph.D:
All nonprofit organizations are subject to what is called the “private inurement” doctrine.
Simply put, private inurement is income or other financial gain from a nonprofit to an individual [or entity] for which the [...]

If your nonprofit is thinking about hiring an independent contractor to help with fundraising, it is essential to understand the requirements for commercial fundraising activities under California law.
California Government Code Section 12599 defines “a commercial fundraiser for charitable purposes” as any individual, corporation, unincorporated association, or other legal entity who for compensation does any of [...]

co-authored by Jenny Kassan and Cecily Jackson
The IRS has been paying increasing attention to the governance of nonprofit organizations.  Here are some guidelines for a “governance tune up” for your nonprofit.
Step 1: Read your governance documents and revise if necessary
Gather together your articles of incorporation, bylaws, policies, and any meeting minutes documenting important decisions.  Make [...]

Managers of nonprofit 501c3 organizations know they have to make sure that no one receives “private benefit” from the organization.  This means that no one should receive any economic benefit from the organization that exceeds the value of what the organization received in return.  This is why nonprofits review salary surveys before setting pay levels [...]