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Stay informed of the week’s notable events and shared resources with this curated list of Nonprofit Tweets of the Week. Notable Events of the Week: “The United States is careening toward an urgent financial crisis starting in less than two weeks, as a political standoff on Capitol Hill threatens to shutter the government during a pandemic, delay hurricane aid to millions of Americans and thrust Washington to the precipice of defaulting on its debt.” Washington Post “Threatened by wars, climate change and a continuing pandemic, the world is becoming increasingly divided, the United Nations secretary general, António Guterres, warned…
When a nonprofit organization receives funding, it’s important for it to know if it should classify those incoming funds as receipts from a contract, or receipts from a grant.  How the funds are categorized can lead to very different outcomes for the nonprofit organization. For example, the characterization will affect the category of expense or revenue under which the payment appears on the nonprofit’s financials, the timing in which the revenue may be recognized, and potentially trigger an organization’s obligation to perform various monitoring procedures.  Whether an agreement is treated as a contract or a grant is also important for…
The Accelerating Charitable Efforts Act (“ACE Act”) is creating quite a stir among nonprofits and leaders in or advising the sector. The TL;DR version of the controversy: the increase in the funds donated to the charitable nonprofit sector resulting from donor advised funds (DAFs) either offsets or fails to offset the problems associated with (1) the warehousing of charitable funds and (2) the substantial tax and other benefits enjoyed by very wealthy donors to DAFs. The fundamental premises underlying this issue are: Agreed: DAFs increase the overall amount of funds given to and received by 501(c)(3) organizations; Agreed: DAFs represent…
Stay informed of the week’s notable events and shared resources with this curated list of Nonprofit Tweets of the Week. Notable Events of the Week: “Twice in the final months of the Trump administration, the country’s top military officer was so fearful that the president’s actions might spark a war with China that he moved urgently to avert armed conflict.” Washington Post “A Republican-led bid to recall Gov. Gavin Newsom of California ended in defeat late Tuesday, as Democrats in the nation’s most populous state closed ranks against a small grass-roots movement that accelerated with the spread of Covid-19.”…
Stay informed of the week’s notable events and shared resources with this curated list of Nonprofit Tweets of the Week. Notable Events of the Week: “President Biden’s new coronavirus vaccine mandates will have sweeping ramifications for businesses, schools and the political discourse in the United States. But for many scientists, the question is a simpler one: Will these measures turn back a surging pandemic? The answer: Yes, in the longer term.” NY Times “The Biden administration announced a blueprint Wednesday outlining how solar energy could produce nearly half of the nation’s electricity by mid-century, part of its ambitious bid…
Indemnification in the context of nonprofit bylaws generally refers to how the nonprofit will protect its directors and other agents in the event they are sued for acting in their capacity as agents of the nonprofit. More specifically, indemnification is an assurance by the organization to make good an individual or group of individuals against expenses, judgments, fines, settlements and other amounts actually and reasonably incurred in connection with any proceeding in which they have become involved by reason of the fact that they are or were an agent of the corporation. So, where indemnification is required or lawfully authorized,…
MONTREAL, CANADA – APRIL 24, 2019 : IRS Forms and Instructions USA Government home page under magnifying glass. IRS.com is an official web site of Internal Revenue Service The Internal Revenue Service (IRS) has a page for Applying for Tax Exempt Status that addresses and has links to applications for 501(c)(3), 501(c)(4), and other exempt organizations. Types of Application Forms Applicants for recognition of exemption under Section 501(c)(3) of the Internal Revenue Code (IRC) file either Form 1023 or Form 1023-EZ. Either of these forms must be filed online using a pay.gov account. Applicants for recognition of exemption under IRC…
Stay informed of the week’s notable events and shared resources with this curated list of Nonprofit Tweets of the Week. Notable Events of the Week: “The Supreme Court refused just before midnight on Wednesday to block a Texas law prohibiting most abortions, less than a day after it took effect and became the most restrictive abortion measure in the nation.” NY Times “The Taliban took control of the Kabul airport Tuesday as celebratory gunfire echoed across the city, capping the militant group’s victory in a 20-year war with the United States after the last U.S. military flight left the…
Stay informed of the week’s notable events and shared resources with this curated list of Nonprofit Tweets of the Week. Notable Events of the Week: “Two explosions killed dozens of people, including at least 13 U.S. troops, ripping through the crowds outside Afghanistan’s main airport on Thursday, just hours after Western governments had warned of an imminent Islamic State attack and told their people to stay away from the airport.” NY Times “This year, the federal government ordered hospitals to begin publishing a prized secret: a complete list of the prices they negotiate with private insurers. … It shows…
Question Whether a director of a nonprofit public benefit corporation who brings an action on behalf of the nonprofit public benefit corporation can lose standing to pursue its claims if the director is not reelected during the litigation? Answer Yes. The statutory scheme and public policy considerations require a continuous relationship with the public benefit corporation that is special and definite to ensure the litigation is pursued in good faith for the benefit of the corporation. If a plaintiff does not maintain such a relationship, the statutory scheme provides the nonprofit public benefit corporation with protection through the Attorney General,…