Nonprofit Issues An Electronic Newsletter of Nonprofit Law You Need to Know  

Don Kramer's PhotoAsk the Editor - To the Point

Each week Don Kramer, editor of Nonprofit Issues, answers a question from a reader. Find his answers below. Can't find the answer you need? Submit a question

This Week's Question: If a member of our 501(c)(3) nonprofit corporation demands to see all of the records of the corporation for the past two years, is there anything that says we have to give them to her?  The Board feels this is not in the best interest of the members. Answer

IMPORTANT:   The answers to these questions should not be deemed legal advice or be acted upon without prior consultation with appropriate professional advisors.

Previous Questions

Question MarkMay a foreign citizen serve on the Board of Directors of a U.S. nonprofit corporation? Answer

Question MarkOur church is going to dissolve and has about $10,000 in the bank. What are we supposed to do with that money? Can we give it to the pastor as a gift? Answer

Question MarkIs there any legal or regulatory requirement for a charity's fundraising event(s) to turn a "profit" for the organization? Obviously there's a practical reason but is there is a regulatory one? Answer

Question MarkMy 15-year old son is passionate about civil rights for youth and is committed to fighting to reduce the voting age in our state to 16. He formed a nonprofit corporation and I am not sure that he should file for 501(c)(3) status.  He intends to meet with state legislators in an attempt to get a bill introduced. I am concerned that meeting with legislators might be considered lobbying and might jeopardize the group’s 501(c)(3) status. Answer

Question MarkIs a nonprofit required to post all officers’ names and addresses on its website? I am worried about being exposed to stalker who has bothered me in the past. Answer

Question MarkShould a nonprofit have paid staff as voting members of the board?  And, if they do, how can they avoid conflict of interest issues that may arise? Answer

Question MarkDoes an organization need to register under state charitable solicitation registration laws if it receives unsolicited donations, e.g., those from individuals and organizations that were not approached specifically asking for donations? In other words, how is "solicitation" defined? Answer

Question MarkOur 501(c)(3) social service agency has an aging donor base.  Some of our donors who originally lived in our area have relocated to other states following retirement.  We continue to solicit and receive donations from them.  Do we need to register to solicit in those states, even though we are not soliciting from a wider population within the state? Answer

Question MarkMy organization has a 501(c)(3) from the state. It also has a full federal 501(c)(3) status. But when I tried to get tax-free billing for a hotel function recently, they denied it and said I need another certificate other than the one issued that declared the incorporation and the federal number ID. What is this certificate they are talking about? Answer

Question MarkShould a residential neighborhood association, whose membership is established by deed restrictions but whose dues are not mandatory, establish a 501(c)(3) tax-exempt organization as a means to attract grants from state and local government, and tax-deductible contributions from businesses and private individuals, to support the operations of the association for the benefit of the community? Answer

Question MarkA group of religious leaders in the same state and same denomination form a 501(c)(3) entity separate from their individual churches with one of the purposes to support - not endorse - local political candidates selected after an interview process which is open to all candidates.  Is this allowed under 501(c)(3)? Answer

Question MarkIf a CEO/ED is providing terrible leadership and the Board has not done the yearly evaluation required by the by-laws, is there anything an employee can do to get the Board to evaluate the CEO?  When is it possible to oust a poorly performing CEO? Answer

Question MarkThe director of a 501(c)(3) decides one day she wants to start her own charity and leaves, taking all the money, supplies etc, to start her own organization She uses a very similar name so she can trick people into donating to her new entity. She is now taking in donations without having her 501(c)(3) in place. Is this legal? Answer

Question MarkOur nonprofit is having an election shortly for directors.  Some people rush in on election night to pay their membership dues, even though they have almost 3 months prior to the election to join.  Without it being in our by-laws, can we say "We are not accepting memberships tonight”? We have no way at the last minute of verifying eligibility. Answer

Question MarkAs a 509(a)(2) Private Foundation composed of WW2 veterans (diminishing membership) what are the required minimums for filing Federal tax returns?  Our income is principally from dues and interest.  Our expenses are mainly for a newsletter and postage. We have an annual reunion which also requires assessments and expenditures. Answer

Question MarkIf a company donates products to a public charity to sell through an auction program, what charitable contribution deduction will be available to the donor? Answer

Question MarkA donor purchased $300 worth of raffle tickets and now wants a letter for a tax deduction.  What do we do? Answer

Question MarkIf an individual or corporation makes a contribution to a public school district, is it considered a tax-deductible charitable contribution, or must the gift be given to a separate 501(c)(3) associated with the school district? Answer

Question MarkMay a landlord deduct the difference between the low rental charged to a charity and the higher actual fair market rental value of property that is leased to the charity?  We searched your entire site and couldn’t find anything about a bargain lease. Answer

Question MarkIs it legal to place political literature on parked cars in the church parking lot or place campaign signs on church property? Answer

Question MarkA group of people did a hostile takeover of our organization, and I was removed from the board. Some board members wanted to use the groups' money to defeat the mayor who was running for reelection. Those who disagreed were removed. What can be done about this group?  Answer

Question MarkIs there any requirement for a 501(c)(3) nonprofit to post its bylaws on a website for members to review and see? Answer

Question MarkTo whom should a charitable contribution check be made out if a nonprofit organization has not yet received its letter from the IRS recognizing its charitable exempt status—the individual who founded the organization or the organization itself? Answer

Question MarkOur 501(c)(3) charitable organization received $6,000 of in-kind items, such as printing service, theatrical production service, advertisements.   Where do we show the value of these items on Form 990 under Part I (Revenue) or elsewhere in the form? Answer

Question MarkDoes it make logical/financial sense to acquire directors and officers insurance coverage only for select directors/officers? Answer

Question MarkDoes the local chapter of a national organization have to obtain its own 501(c)(3) charitable status or can it "ride" on the national's 501(c)(3) status? Answer

Question MarkFollowing up on the question last week about the nondeductibility of a gift of use of a vacation condo, what if a restaurant is donating the food, the facility and the services to permit a charity to run a fundraising event? Is the donation of the food tax deductible? Answer

Question MarkCan an employee serve on a private nonprofit corporation board of directors? Answer

Question MarkI donate my vacation condo as an auction item for some of the 501(c)(3)'s with which I am involved. Frequently it goes for $2000/wk or more. More often than not, although I don't request it, I receive a letter from the charity telling me I can claim a $2000 charitable contribution deduction.  Is this correct?  Answer

Question MarkWe recently attended a charity function (car show) which cost $100 per person.  It was advertised as completely tax deductible.  We were treated to an open bar, food stations, free Valet Parking, and a drawing was held for leases on a new car.  Should that entire admission price be tax deductible?  I was told that it was all deductible because the event was completely underwritten. Answer

Question MarkIf our charity receives a cash contribution of more than $10,000 (in actual currency and not a check), must we report the receipt to the Treasury Department?  Answer

Question MarkWhen and why should a well-established 501(c)(3) organization give consideration to establishing a separate Foundation that supports the organization?  What are the benefits and negatives of establishing a Foundation? Answer

Question MarkOur new nonprofit corporation agreed to buy a property for $250,000. The seller has given us a short extension but we may not have the money to complete the deal.  We have already had the engineering and design done for the building, but we have only $400 in the bank.  We have yet to buy directors and officers insurance.  If we can’t pay the engineer and architect, will we be personally liable?  The President signed the contracts in his own name “for the X Center.” Answer

Question MarkI have recently learned that a trade association claims to be nonprofit, filing a Form 990 Return of Organization Exempt From Income Tax; however, the association has never registered with the state attorney general or the charity bureau.  What steps can I take to report this fraudulent activity with the IRS and the state? Answer

Question MarkI formed a nonprofit company in one state and am now getting my MFA in another state on the other side of the country. Can I "move" my nonprofit company to the new state or do I have to start a new one? Answer

Question MarkCan a 501(3)(c) charity (a hospital) have a for-profit subsidiary that is taxed as a "C" Corp? Answer

Question MarkIs it legal for a nonprofit Board to conduct electronic meetings or make decisions via email without actually meeting face to face? Answer

Question MarkMay donor-restricted funds be pledged as security for a bank loan? If not, could donor-restricted funds nevertheless be used to satisfy creditor claims if the nonprofit has no other assets? Answer

Question MarkSeveral officers and I were recently voted off a nonprofit board for holding an “illegal” Executive Committee meeting without the “permission” or knowledge of the Executive Director. As a former secretary, I am sure we were in compliance with the bylaws.  What recourse do we have against the President, the Executive Director or the nonprofit for removing us? Answer

Question MarkDoes the treasurer for a nonprofit have to be a board member?"  A woman wants to donate her time to do a charity's books but doesn't want the responsibility of being the Treasurer.  At what point does she cross a line and become some kind of de facto treasurer? Answer

Question MarkMay a nonprofit and a for-profit have the same name, but maintain separate corporate structures, accounts and legal identity? Answer 

Question MarkDoes a 509(a)(1) still hold nonprofit status?  Is it able to apply for nonprofit funding? Answer 

Question MarkCan a church or other charity give away a car that was given to it?  I was told no, but the church wants to give it away.  Can the church legally do it? Answer 

Question MarkCan a standing committee create its own separate by-laws? Answer 

Question MarkOur executive director and board president are the same person.  This president/director has recently made announcements, on behalf of the organization yet without the board's knowledge, that he is leaving his position as director.  What authority can the board call upon to rein him in and fix this mess? Answer

Question MarkIs it necessary to name a Finance Committee as a standing committee in the bylaws of our nonprofit? Answer

Question MarkOur 501(c)(3) school has a computer use policy that states that the email system is school property.  Is it proper for school employees or spouses to use the email system to send unsolicited emails regarding political campaign issues? Answer

Question MarkOur organization is converting from for-profit to nonprofit in order to seek grants and donations for ongoing support.  Can we approach private foundations to obtain grants before being officially recognized by the IRS as a 501(c)(3) entity? Answer

Question MarkWe are a 501(c)(3) charity and would like to put a place for donations on our website.  Can we receive a donation from someone in another state and use it in our home area? Answer

Question MarkWho should appoint the auditors for a nonprofit? Answer

Question MarkAs a nonprofit, do we need to change auditors every so often? If so, how often should we change? Answer

Question MarkThe bylaws of our nonprofit corporation, a chamber of commerce, do not specify how to remove a board member, in this case the President. We have 7 members of the Board. At a meeting, we voted 4-0 to dismiss her. We also drafted a letter for her removal that 5 directors signed and one did not. What are the rules regarding this matter? Answer

Question MarkFor our charity auction, a donor provided a getaway sailing weekend complete with meals, water taxi and accommodations on the sailboat. The donor also captained the boat for the trip. The trip sold for $2400. What can the donor claim as a charitable deduction? Answer

Question MarkOur Chamber officers are not following the bylaws. The bylaws state that a nominating committee should be appointed and a slate of names be submitted for voting by the membership. This was not done last year. The president called individuals she and the VP felt would be good on the Board. No directors or members voted. Recently, other bylaws have been disregarded. What is your advice? Answer

Question MarkCan our 501(c)(3) organization keep the list of board members confidential and refuse to make it available to the public? Answer

Question MarkIn one of your questions last week, you wrote about sales in which the seller says "a portion of the proceeds are to benefit" a certain charity. How would the seller give receipts to those wanting them? They'd have to say what % of their donation is going to a charity, right? Answer

Question MarkWe recently hired a new employee who states that a 501(c)(3) corporation has limitations on the titles that can be given to employees or created by the company. Is this true? Answer

Question MarkIs it appropriate for a 501(c)(3) charity to accept money from a politician who is running for office or is holding office? Answer

Question MarkMay the president of a small 501(c)(3) corporation appoint her husband to be the organization's pro bono attorney to give legal advice and handle routine legal matters? Answer

Question MarkI have dissolved a scholarship fund and have requested that the balance be refunded to me. The director told me that it could not be done because it would violate the rules of Section 501(c)(3). Is this correct? Answer

Question MarkCan a nonprofit pay for cost of the lunch at a Board meeting with organizational funds? Answer

Question MarkWe are a Canadian charity with many U.S. donors who make contributions with no tax benefits. Are there any legal restrictions to the nature and/or extent of fundraising solicitations that we may carry out in the U.S.? Is there any way we can offer U.S. tax benefits to our U.S. donors without going through a U.S. 501(c)(3) fiscal agent? Answer

Question MarkCan a 501(c)(3) organization provide information in its newsletter or on its website about openings on local elected boards and information about running in local elections without fear of losing its 501(c)(3) status? Answer

Question MarkI was a Board member of a $5 million Educational Foundation of which my husband became President. Our marriage dissolved and he dissolved the Board. I know of an instance where he "borrowed" $50,000 from the Foundation for personal use without board knowledge or approval. Is this behavior legal? Do I have any recourse considering I'm no longer with the Foundation? Answer

Question MarkOur bylaws provide that our Board Chair can vote only in the case of a tie. Isn’t that a good idea? Answer

Question MarkWe are a multi-state public charity with donors in many different states. We primarily solicit through mail appeals and phone work, as well as personal visits. We don’t hire outside professional solicitors, but rely on staff for the work. Do we have to register in every state in which we have donors? We are registered in the state where our office is based. Answer

Question MarkI believe a nonprofit organization has been violating nonprofit law for years by having hired board members and their family members for paying jobs in the organization. To whom should I report this activity in the state and/or federal government? Answer

Question MarkThe board of a nonprofit arts organization voted to disband and close up shop due to financial difficulties -- much to the dismay of many in the community. Can anything be done to resurrect the organization? Answer

Question MarkI have been told that a 501(c)(3) corporation needs to have insurance. What kind of insurance does a non-profit need? Answer

Question MarkIn a traditional nonprofit organization, what is the difference between board chair, vice-chair or board president, vice-president? Is one more correct? Answer

Question MarkThe founder of our nonprofit is the only person who signed the incorporation papers. A year ago, she resigned from the board at odds with the other four board members. As the sole incorporator, can she now dissolve the corporation? Answer

Question MarkWe are a 501(c)(6) trade association intending to establish a separate 501(c)(3) charity for scholarship activity. Can the board of directors of the 501(c)(6) serve as the board for the new organization? Answer  

Question MarkIs a nonprofit organization that is not recognized as a tax-exempt charity under Section 501(c)(3) out of line when it sells ads as a sponsorship for an event and gives the business people the belief their ad is tax deductible because the event is held by a nonprofit organization?  Answer 

Question MarkThere were irregularities during the election of the officers of our nonprofit corporation and a new election was required. Does the incumbent president remain in office until the election is held, or is that office vacated and filled by the vice-president? Answer

Question MarkThe Executive Committee of our nonprofit corporation is violating one bylaw after another. Other directors are also pointing it out but nothing stops. Their conduct has cost the organization a lot of money. Should I just walk away or is there a legal way to stop them? Answer

Question MarkIn a recent Tax Matters item (August 1-15, 2006), you said that because of the new Pension Protection Act "Charities that now think they must provide a substantiation letter only for gifts of more than $250 will want to assure that their donors are in a position to claim the deduction for their gifts and will want to acknowledge all [cash] gifts, no matter how small." Is this an affirmative duty of the charity? Or just a nice thing to do for donors? We get a lot of $1 donations and it costs us more to receipt the donation than it's worth. Answer

Question MarkAs a member of the Board of Directors, I have been told that the salary of our Executive Director is protected information not available to me or the public. Is this correct? Answer

Question MarkOur nonprofit has been slowly increasing the balance in the corporate bank account without any plan for how to reinvest the funds. Is there a limit to how much a nonprofit can have in a savings account or carry over without being spent from year to year? Answer

Question MarkCan the Executive Director of a nonprofit corporation fire a director for not agreeing with him? Answer

Question MarkWe are a nonprofit youth baseball organization recognized as an exempt community organization under Section 501(c)(4). We believe that we should be a 501(c)(3) charity. Is there an advantage to changing and if so what do we do to change? Also, we cannot find our articles of incorporation. How do we obtain that information if the State does not have a copy either? Answer

Question MarkOur board president bought our thrift store manager a new car and paid for it with money donated to our shelter. He also owns a printing firm which charges thousands to the shelter, yet all our documents that go out to the public say the printing is donated. What can be done to get this unethical man off of our board? Answer

Question MarkCan a for-profit business owner start a nonprofit public charity? Answer

Question MarkIs it possible for a 501(c)(3) nonprofit organization to go into a partnership with a for-profit business corporation on a 50-50 basis? Are there different tax issues involved? Answer

Question MarkWe are planning on moving our small, nonprofit theatrical production company to another state. Do we have to file for 501(c)(3) status again once we move, or is our existing status valid in any state? Answer

Question MarkCan a person give money to a church and designate that it to be given to a person outside the church? Answer

Question MarkOur church has finished a building campaign and some of the elders say that the gifts for the building fund can be spent on other purposes. They cite an IRS Revenue Ruling and the cy pres doctrine. Are they correct? Can I get my gift back and, if I do, will I have to declare taxable income? Answer

Question MarkOur nonprofit uses a for profit fundraising group that runs a fundraiser at which people are invited to come at no cost to learn about the program. The invitation indicates that they will be asked to give a contribution and that a meal will be provided. It is usually very successful. Acknowledgements provided to the donors indicate that "no goods or services were received in exchange for the donation." Is this appropriate since the attendees did receive a meal? Does the fact that the meal is provided "for free" to all whether a donation is given or not mean that we can legally say "no goods or services were received." Answer

Question MarkIs it legal for the minutes of a meeting of a nonprofit corporation’s Board of Directors to exclude ALL names so as to protect privacy? Answer

Question MarkOur nonprofit organization has always made our Board meetings
open to the public. At our last meeting, things became quite disruptive
and interrupted the flow of the meeting. The next meeting we had was
not open to the public. Some members of the Board believe that this
is an illegal action. Are they right? Answer

Question MarkWhat is required to convert a private foundation to a public charity? Answer

Question MarkOur 501(c)(3) historic home museum rents out the museum for dinner parties, showers, meetings etc. Can we allow political candidates to rent the Center to use for campaigning purposes? We technically have no involvement other than the rental contract. Answer 

Question MarkIs it okay for our church to send the pastor and his wife to a conference of the fellowship and pay for it all if there is no reason to send the wife? How about gifts to visiting ministers? Are these examples of payments that “inure to the benefit of an individual” that could cost the church its tax exemption?  Answer 

Question MarkThe Church which I Pastor left one of the major denominations last year and our 501(c)(3) was under their umbrella. Do we need to file again for that status with the IRS or are we covered? Answer

Question MarkWhat is the fundamental difference between a "Non-Profit" ["NPO"] and a bona fide, Christian Church? Over the years, I have observed even lawyers refer to churches as "Non-Profits" or "Non-Profit Organizations". Sounds to me like an oxymoronic, impossible, mutually exclusive concept. But, I am not a lawyer. Answer

Question MarkWhere Articles filed more than 35 years ago say the membership shall consist of the incorporators but the Bylaws are silent about member voting rights and no member meetings (or vote) have ever occurred, do the members that still survive have the right to vote on a fundamental corporate change after Board approval? Answer

Question MarkOur nonprofit softball team is dissolving after less than a year in existence. We have some money left over from sponsorships that we solicited but did not use. Some of the parents want us to distribute the money to them since they paid the players’ fees. We were thinking of transferring the money to another team and might merge. What should we do? Answer

Question MarkWould it be proper to complain to the IRS if a nonprofit engages in an active lobbying effort? This nonprofit has a 501(c)(3) status. It has come to my attention that a nonprofit must have a 501(c)(4) status in order to lobby. Answer

Question MarkCan a nonprofit organization maintain the right to refuse membership to anyone it chooses? The bylaws say it can, but isn’t that susceptible to bias and discrimination? Answer

Question MarkWhy is proxy voting different for nonprofits? Shareholders of a business can vote by proxy, but directors of a nonprofit can’t. Is there any explanation for this? Answer

Question MarkOur articles of incorporation state that our 501(c)(3) religious nonprofit cannot own stock. Is there any way we can change the articles or adopt a new policy on investing? Answer

Question MarkIf I want to pay for a service to a 501(c)(3) organization, do I get a personal tax benefit or write-off for paying the cost of that service? Answer

Question MarkCan a pastor discuss politics from the pulpit? If so, how far can he/she go. Can a pastor have political events at his home as a private citizen? Answer

Question MarkCan you borrow from "designated funds" to pay other bills, and then replace the funds later? Answer

Question MarkWhat is the difference between public charities, private foundations, and donor advised funds? Answer

Question MarkAre we required to renew our nonprofit (501(c)(3)) status? With the state? With the IRS? Answer

Question MarkWe are a small 501(c)(3) theatre group. All of our board members serve without pay. Our annual budget is $10,000 to $15,000. Some of our members have substantial property. Do we need board insurance?  Answer  

Question MarkOur nonprofit committee has worked under the auspices of our city government, which covers all our functions under its insurance. If we become a separate 501(c)(3) organization, will we be liable for accidents or can we still remain under the city’s insurance? Answer 

Question MarkOur 501(c)(6) business association has taken on a local charitable cause. Can we form a wholly owned subsidiary that obtains 501(c)(3) status in order to solicit charitable grants and contributions?  Answer 

Question MarkI asked a 501(c)(3) organization for a balance sheet and financial statement, over 4 months ago and they have not responded. Do they have a time limit as to when they need to respond?  Answer  

Question MarkIs it okay to claim and advertise that you are a nonprofit organization to your consumers and clientele before filling a 501(c)(3) application for recognition of exemption?  Answer 

Question MarkI would like to know if 501(c)(3) organizations must charge tax on merchandise SOLD. I understand that they do not pay tax on merchandise purchased. Answer

Question MarkOur Executive Director would like to supplement our publishing dollars by selling ads. I have been told by our grant writer that we cannot do this because the income would be treated in a different manner than the grants we are funded with. Answer

Question MarkCan a charity participate in a referendum on gentrification? Answer 

Question MarkAre officers of a nonprofit corporation required to give a written copy of the by-laws to each of the members or is it sufficient to allow members to read the rules in an open meeting.  Answer 

Question MarkOur charity currently uses PayPal to processes credit card payments for donations. We ask anyone who uses this payment option to include an extra amount to cover the transaction fees that the site charges. Is the total amount tax deductible to the donor? (i.e. if I donated $508, $500 to the organization, $8 for transaction fees, is the entire $508 tax deductible or just the $500 that goes to the organization?) Answer

Question MarkCan a U.S. corporation whose main objective is to fund a religious orphanage/school in a foreign country get 501(c)(3) status and collect donations from American donors that are tax deductible to the American donor? Answer

Question MarkI have started a nonprofit organization and would like to file an IRS 501(c)(3) application. I need to have this status within the shortest possible time. Please let me know how long it might take.  Answer

Question MarkI am wanting to start a nonprofit 501(c). Could you please give me some information on the first steps in starting? Answer

Question MarkWe have received a request from a for-profit organization for a membership list from our 501(c)(3) charity. We have always guarded this list against use for any purpose other than our stated mission and have not divulged it. I am greatly concerned that this membership list will be used to solicit business for the companies that are requesting it. Are we required to provide them our membership list? Answer

Question MarkIf we change our nonprofit mission statement and bylaws with minor word phrases, whom do we legally have to notify? Or do we just keep the new version which was approved by the board of trustees at our national office? Answer

Question MarkOur school is a 501(c)(3). If we have a parent organization that raises funds for our school, should it have its own EIN for its checking account or use ours? Answer

Question MarkCan the founder of a 501(c)(3) nonprofit, who does not hold a board position, be voted out of the organization by board members? And if so, what protection does that founder have to safeguard that which he or she has founded? Answer

Question MarkOur Church is a 501(c) (3) which has a Camp with about 30 cabins where we spend about 10 days a year for Church services. Many parties are interested in renting our facilities. Would such rentals affect our status with the IRS and cause us to be subject to local real estate taxes? Answer

Question MarkCan a for-profit have a nonprofit subsidiary? Answer

Question MarkI am a volunteer. A grateful patient gave me a personal gift worth about $200. Is the gift considered compensation for my work? Answer

Question MarkI requested a copy of the budget from a 501(c)(3) children’s home that I contribute to. I was told it is not their policy to provide budgets. Aren’t they required to? Answer

Question MarkI am the treasurer of a 501(c)(3) community center. We are thinking of closing the Center. What happens to the exempt status? Does it also cease? Can it be held in the hope of reopening the Center, or can it be transferred to another entity? Answer

Question MarkIs it a problem to pay for alcohol as part of a Board meal with 501(c)(3) funds? Answer

Question MarkOur nonprofit corporation is now 10 years old. We have always had just the 4 officers and members. As we are growing, we would like to start a voting board along with the officers. How do we go about doing this? Answer

Question MarkIf funds are stolen from a 501(c)(3) charity, does the Board have an obligation to report it to the police if the funds are returned? Answer

Question MarkWhere can I find information on how to take a company back to a for-profit organization? The company was started as a for-profit for the first 5 years and then turned into a nonprofit for 4 years. The owner wants to sell it but first needs to make it into a for-profit again? Answer

Question MarkMy wife and I have a private family foundation. We work with at risk inner city kids for educational tutoring. Can we become a public charity or create a public charity with just the two of us as trustees? Answer

Question MarkIs there a legal method for a group of “affiliated” 501(c)(3) organizations to join under one holding company so they are legally tied together? They are now affiliated by some common board membership and shared services. Answer

Question MarkIs there a law that says churches are exempt from disclosing their finances and salaries? Answer

Question MarkCan a tax deduction be taken for 2005 even though the commitment and the gift were made in 2006? Answer

Question MarkOur 501(c)(3) is holding a retreat for families of individuals with a certain disease. A family with a vacation rental is willing to donate the home for the retreat if they can have a charitable contribution deduction. Will they be able to claim a deduction if they provide the house? Answer

Question MarkCan two independent 501(c)(3) organizations merge? Answer

Question MarkCan our 501(c)(3) accept a donation to be used by an individual member for her expenses or must it be used for the entire membership to be deductible? Answer

Question MarkI am doing volunteer work for a 501(c)(3) organization that says only paid “members” can see the bylaws and charter. I thought these had to be available to the general public upon request, but maybe I was confusing it with the tax return. Please advise. Answer

Question MarkHow secure is a donor’s life annuity under a 501(c)(3) charity giving plan?
Does the Government offer any guarantee if the plan operator falters? Answer

Question MarkTwice a year our 501(c)(3) charity publishes a newsletter for which we charge recipients. Is it illegal to give the newsletter (for free) to individuals who donate to our organization with the understanding that they will claim their donation as a tax deduction? Answer

Question MarkIf a requirement for a grant is to be a nonprofit organization with the 501(c)(3) exemption and my foundation status classification is 509(a)(1), does that mean I am not eligible for the grant? Answer

Question MarkAt the last election of officers, the members voted for officers for terms of two years. Before the next election, the Board extended the terms for another year. The bylaws used to require that any changes had to be approved by the members, but the Board changed the rule so they can make changes without notice or approval from the members. Are there any IRS rules that vest power in the members? Answer

Question MarkDid you ever hear of a law that says a 501(c)(3) organization cannot conduct an auction of any kind? Answer

Question MarkCan a husband and wife be members of the board of directors? And can a member of the Board be a paid employee of the corporation? Answer

Question MarkIs it true that the Katrina tax relief bill, which provides that donors may deduct up to 100% of their income this year, does not apply to gifts to supporting organizations or donor advised funds? Answer

Question MarkWe would like to start a Foundation in honor of our mother who gave her life to volunteer causes. The Foundation would support some of her favorite charities. How should we go about it? Answer

Question MarkIs it illegal for a charity to use money allocated to a building fund for general operating purposes? Answer

Question MarkCan a nonprofit corporation that has no members (according to its articles of incorporation and bylaws) charge “membership dues” as a fundraising activity? Answer

Question MarkThe deed to our church contains a reverter clause stating that the property will revert to the grantor if the property is no longer used for religious purposes. Since the church is a nonprofit corporation, is that clause still enforceable? Answer

Question MarkOur 501 (c)(3) corporation has an endowment fund. Is there, by law, a requirement that a certain percentage of the interest be spend annually? Answer

Question MarkOur 501 (c)(3) corporation is considering making a contribution to a hurricane relief fund. Is it legal for a 501 (c)(3) corporation to make such donations to another charity? Answer

Question MarkOur 501 (c)(3) corporation is banned from engaging in political activity, but we are considering ways to help hurricane victims and thought one way we could be helpful is to contact our representatives in Congress to ask them to provide funds to aid governmental relief efforts. Are we allowed to do so? Answer

Question MarkHow do you find out if an organization has 501 (c)(3) status in your state or another state? Answer

Question MarkIs there a statute prohibiting convicted felons from serving on a 501 (c)(3) corporation board? Answer

Question MarkWe have a nonprofit organization with an executive board and a general board. One member of the executive board shares information of the executive board meetings with a general board member. Do we have grounds to remove this person from the position? Answer

Question MarkI understand that a foundation cannot make a grant to a nonprofit, where the grant is more than half of the agency's budget. For example, if a nonprofit's annual operating budget is $100,000, a foundation cannot make a grant of $51,000, the theory being that it may be able to exert undue influence and "tip" the agency to do the foundation's bidding. Is this true? Answer

Question MarkIs it legal to charge a percentage of gross income from fundraising as salary instead of a base salary? Answer

Question MarkI would like to start a nonprofit organization for the spreading and teaching of the arabic language.  A foundation overseas for spreading the Arabic language makes books that I would like to sell in order to generate income to support my cause.  Also I would like to open institutes for teaching the language also for a fee.  Would I be able to file for a non-profit status on these conditions? Answer

Question MarkAre meeting minutes, which are distributed, read and approved by vote of both the Executive Board and the General membership, a legal document? Are they up for any interpretation if something is called into question and those that did not agree with what was reflected in the minutes say that was not they intended so they aren't going to do it as set forth in the minutes? Answer

Question MarkOur nonprofit has two boards: a foundation and exceutive board. Some members are on both boards & actually influence both boards, irrespective of bylaws. Is this practice legal and acceptable? Answer

Question MarkOur theater company just became a 501(c)(3).  Some of the members only want members on the board, but others believe the board should have "outsiders" who are "disinterested" parties.  No one gets paid, but we believe members are somewhat "interested" and therefore a board with members only will not be acceptable for public funding. What do you think? Answer

Question MarkWe have a home owners association that has filed only State requirments and received the exemption but have never filed for federal exemption. Is this organization valid? Answer

Question MarkCan I open a nonprofit but not be tax exempt? Answer

Question MarkA friend and I were asked last year to open and run a food pantry by a lady who has a food pantry in another county. We have been running it under her and her 501(c)(3). She has told us she wants to close her food pantry and we must close ours. How do we continue running our pantry and get a 501c3 status of our own? We would now like to continue under the name of her organization. Answer

Question MarkCan a 501(c)(3) take a sabbatical as an organization to regroup? Answer

Question MarkSome grant funding mentions 501(c)(3) status and we are a clinic that is part of a law school.  Do we need to apply for 501(c)(3) status in order to get grant funding?  Does the educational institution status of the law school count? Answer

Question MarkI think the organization I just took over is 501(c)(3) but I can't find a certificate or anything in the materials handed down to me from last year's president. How might I go about obtaining a certificate? Answer

Question MarkI would like to use an online store to sell items for a profit so that we may raise funds. Should I be concerned about tax problems connected to our income? Answer

Question MarkI am currently working for a 501 (c) (3) organization and we are looking to replicate the model in other sites. Will the 501 (c) (3) status carry over to the replicated organization or will papers need to filed again? Answer

Question MarkDoes the Fair Labor Standards Act (FLSA) apply to a 501(c)(3)? Answer

Question MarkA group of us located in Maryland are looking into starting a Church. I am a little confused as to whether or not the Church can be an LLC if in the future it may become 501(c)(3). Answer

Question MarkWe have sent our child to ABC Christian school. At the beginning of the year, the "President" of the school board told us that the host XYZ church which contributed funds to the school would be reducing its contribution 20% per year and that we (THE ABC SCHOOL) had to stand on our own two feet within the next several years. As a result, parents doubled their charitable donations and many of us gave thousands in goods, cash and services way beyond the tuition payment. The school hosts an annual big fund raiser and at the conclusion of the fund raiser, the hosting xyz church board closes down the school and keeps the money. On investigating the status of the school which was advertised as being separate from the church as in its own 501(c)(3) with its own board of directors, we find out that such is not the case. The school as such never existed but was actually part of the church. What can we do? Answer

Question MarkWhat is the process for turning a for-profit company into a non-profit? Answer

Question MarkI am a board member for a high school aquatics booster club and I am wondering how to go about getting replacement proof of our 501c3 filing/status for fundraising purposes. We have a tax id# but I need proof of our current tax-exempt non-profit status. Answer

Question MarkI have read Nonprofit Issues articles about employee classifications (hourly, salaried-non-exempt, salaried-exempt) and reviewed info at the DOL website.  Currently all staff at our organization are classified as salaried-exempt.  I have asked the Board to review the classifications, because I don't believe everyone qualifies as exempt.  What can be done if the Board chooses not to address these issues or not to change policy?  Should I do anything? Answer

Question MarkAs a tax-exempt organization, we refused to show an employee/member the Form 990. It was done basically out of ignorance. We are now being told we must pay a hefty fine for each day of refusal. What is the fine for not making the Form 990 public? Answer

Question MarkMy daughter belongs to a dance company that has 501(c)(3) status. Each member has fundraised to go on tour to London with the company. My child has received donations from her sponsors in the amonunt of $10156, and due to the recent terrorist attacks in London, I have decided not to sent my daughter.  The Dance Company has informed me that they plan to keep my child's donated funds and put those funds towards another child.  My question is can the Dance Company use donations ear-marked for my child for another child? My child's sponsors are requesting their donations back. What can I do or how should I proceed? Answer

Question MarkI recently became the president of a 501(c)(3) corporation. In the past, the Board met an hour prior to the general meeting. I prefer to have board meetings at a different time and place. I welcome non-board members to attend, but I am unsure of the exact legal obligation we have to inform membership of our meetings, how far in advance, and by what method they must be notified. Answer

Question MarkIs it legal for members of the same household to have a controlling or equal share of the Board of a 501(c)(3) nonprofit organization? Answer

Question MarkIs there a cost in changing the name of an established 501(c)(3) organization ? Also, what would the process be to change the name but keep the same Tax ID number? Answer

Question MarkAs a member of an nonprofit orginzation, can I be excluded from meetings? Answer

Question MarkI have heard that there is a restriction from political involvement for 501(c)(3) organizations.  What, if anything, does this mean? Answer

Question MarkI have coordinated a charitable event for the past 9 years and donated the proceeds to a local 501(c)(3). We are growing and expect to raise over $100,000 this year. I am considering filing for 501(c)(3) status for my organization. The most important question is, if I become a 501(c)(3), am I legally permitted to donate all the proceeds from my annual event to one 501(c)(3) organization or will I be forced to give to more then one organization? Answer

Question MarkIf my 501(c)(3) offers benefits (or small gifts) for membership/donation monies, how does that impact the amout which the donor can claim as a tax deduction for the gift? Answer

Question MarkI incorporated a not-for-profit organization (religious/cultural) in January of 2004. I was the incorporator and I appointed 3 other members to the board of directors. In the beginning, the directors were not interested in running the organization because of the organization's lack of funds. I was in full control. Now, the organization owns real estate worth $400,000 and has big commitments to build a center! The other directors now are trying to reshuffle things and gain more power. I believe the other directors are steering the organization away from the objectives that I have set. Right now bylaws are non-existent. What can I do? Answer

Question MarkIs it illegal for one nonprofit organization (school) to give to another nonprofit organization (another school) for a fundraiser? Answer

Question MarkThe youth organization that I coach at let the 501(c) number lapse. How can we reinstate with our paperwork? The officers have changed without leaving proper paperwork. We rely heavily on sponsorship, therefore, our sponsors need to be able to get tax credit. Answer

Question MarkI am a member of a non-profit golf club (600+ members).  I was denied access to the finanical records, by-laws and meeting minutes.  What is the law? Answer

Question MarkSome members of our 501(c)(3)women's service club have decided to drop out and form a social club among themselves. They say they do not intend to file with the IRS to become tax-exempt. However, they intend to raise funds and donate to local charities. What rules govern and/or limit them? Answer

Question MarkWe are a 501(c)(6) trade association. One of our members has requested we post our board of directors meeting minutes on the association's website.  We always distribute the minutes to our board but are reluctant to post them on our website for "the world" to view. Legally, what is our responsibility in regards to making minutes available? Answer

Question MarkAre there laws that preclude a private (religious) association from diverting funds given by its members for a specific project (for, say, the publishing of a book, or for scholarships for students) into its general operating funds? Who should one talk to if one knows such a thing is going on? Answer

Question MarkCan a for profit company set up a 501(c) organization under its umbrella? Answer

Question MarkCan a 501(c)(3) nonprofit enter into a business activity in competition with previously established for-profit businesses? Answer

Question MarkCan an Executive Committee of the board approve new by-laws prior to submitting them to the board for approval? Answer

Question MarkI received a charity request from the "Fraternal Order of Police" who claims to be a nonprofit organization. The form states "contributions...are not tax deductable." I thought any legitimate nonprofit charity organization was tax deductable. Please explain. Answer

Question MarkAre there published IRS standards for determining reasonable (acceptable) salaries for the principals of a small non-profit religious organization (2-3 employees)? Is there an acceptable level of payroll as a percentage of Gross revenue? By what measure would the IRS determine whether or not an individual's salary is excessive? Answer

Question MarkWe are a 501c3 that supports the education of our kid's competitive dance troupe.   When we have fundraisers and opt to disperse funds back to the members, does it have to be dispersed equally amoung members or can it be ratio'd by how much they participated in the fundraising? Answer

Question MarkWe are a performing arts 501(c)(3) organization that charges an audition fee for the various levels of dancers.  Parents are wanting to know if this is considered a tax deductible fee? Answer

Question MarkWhat happens to the assets of a nonprofit corporation if it dissolves at the end of its term of existence within the articles of incorporation.  No bylaws exist to address this issue nor is it addressed in the articles.  I am told that the assets revert to the State. Can this corporation be reinstated even though its original term has lapsed? Answer

Question MarkOur 501(c)(3) is interested in purchasing some land as a bargain sale where the land owner could then take a charitable deduction of the difference between sale price and fair market value.  The ministry wants to in turn sell the land to a family member who is going to build a house.  Are there any problems with this, especially in the area of selling the land to a party in interest? Answer

Question MarkDoes the Board of Directors of a 501(c) corporation have the right to hire an attorney to represent the corporation if one of the members of the organization will be taking legal action against the corporation for what the member percieves to be irregularities? Can the Board make the decision to hire an attorney? Does the Board have to present this issues to all members for a vote? Can the fees for this attorney be paid from the general corporate funds? Answer

Question MarkI have allowed an emergency needs program seeking their own non profit status to use our 501C3 during their waiting period of application. Now they have their own non profit standing. Can they file their taxes under their new Tax ID number --  or must they file their taxes under mine. Answer

Question MarkDoes a nonprofit volunteer fire company need file for a 501(c) status of some kind to receive tax deductible contributions? Revised Answer

Question MarkIf we secure contributions from other states for our nonprofit organization, do we need to register or do anything? Our contributions are targeted to individuals seeking $200 or less per individual. Answer

Question MarkCan you tell me what percentage of income a 501(c)(3) organization must spend each year to retain its charitable status? Answer

Question MarkI'm a board member of a nonprofit sports club for kids. We're redoing our bylaws. We came across an entry that stated executive board members, Active members, Reserve Members shall pay an annual fee of $5. No one has done this in the last 10 years of the organization. Can we remove it or is there a reason that it's there? Answer

Question MarkIf we, as a grassroots mental health organization have filed for our 501(c)(3) status but have not yet been approved can we do business as a non profit and accept funding from a private corporation for services rendered during this application time? Answer

Question MarkNew to the Board of directors, I find that while attempts are being made towards financial accountability by a new president, older board members are stonewalling the effort. What can the new President do to force these members to comply with the non-profit laws? There are real concerns of fraud that can be substantiated. Who does the new President turn to since this half the board wants to move forward and forget about their neglect last year? Answer

Question MarkIf a sum of money is donated as a memorial to a nonprofit organization with a 501(c)(3) status and the money is deposited into the general fund of the organization to be used in purchasing something in the name of a deceased person as a memorial, can the monies be withdrawn from that organization and given to another nonprofit organization? Answer

Question MarkI am currently in the middle of the IRS advanced determination letter process. The IRS has a hang-up because I am the only Director. There is no internal revenue code law that says there must be 3 people on a board of Directors. Do you know of any 1 person 501(c)(3)s? Answer

Question MarkWill a D& O Policy help my organization? My company has failed to do the following;
1. remit taxes to the state and IRS
2. remit collected medical insurance premiums to carrier in a timely manner which has caused insurance to lapse on four occasions
3. mismanaged a government grant. Answer

Question MarkWhat is the total allowance of monies that the President and VP can contribute into the ministry of a 501(c)(3) yearly. Also when would the IRS question the amount of donations given to other ministries, in excess of multiple ministries yearly? Answer

Question MarkIn nonprofit charitable organizations are secret, closed assemblies allowed? Answer

Question MarkWe are a group of 15 bed and breakfasts who collect dues, stage fundraisers, promote tourism, participate in community events, and contribute to needy members of our community.  We cannot seem to convince a bank to provide us a checking account without formal IRS status.  Is 501(c)(6) right for us? Answer

Question MarkWhat is the advantages and disadvantages of becoming a 501(c)(3) verses a 501(c)(6)? Answer

Question MarkCan a nonprofit hire a professional fundraiser to secure funding for special events or donations and can their fee come from a designated percentage of funds solicited and secured on behalf of the organization? Answer

Question MarkBy law what does a charity have to do if it receives a donated car and wants to sell it? Answer

Question MarkI am the director of a nonprofit and want to rent an area of my home to the organization. Is this illegal? Answer

Question MarkThe treasurer of our PTO insists that we carry over at least $4000 for the next school year in case we don't have as successful a fundraiser next fall.  I think that is excessive.  Are there any laws regarding the carryover of funds?  Shouldn't we spend the money this year's classes raised on them? Answer

Question MarkWe have an existing 501(c)(3) organization. We are applying for another 501(c)(3) for a similar cause. Can we receive donations to the established one and hold/transfer those donated funds to the new one when we receive our advance ruling letter from IRS. If so is there a proceedure we need to follow? Answer

Question MarkI am trying to find out whether our organization is recognized as a church for tax purposes. Is there any other category under which we could be exempt. Answer

Question MarkI belong to a 501(c)(3) organization, that is a Food Pantry, but also, gives out money for help with utilities and rent. Every year they are holding back at least 40,000 dollars in the account. Is this against all rules. The primary is Food Pantry, is utilities and rent unlawful, and who do I contact for an Audit? Answer

Question MarkBased on some other answers you've given, donations of labor for plumbing, electrical, etc. work are not considered revenue for our new 501(c)(3) organization. However, can those individuals claim the value of those donated services on their taxes as charitable donations? And on a related note, is it better to have them donate the materials used and have us pay for their labor, or visa-versa; or does it really matter from a tax standpoint for either us or those who donate how donations are made? ...we are starting a Homeless Services Center. Answer

Question MarkHow much public disclosure is required of a 501(c)(3) organization? What are the basic requirements regarding annual meetings and open membership, if any? Answer

Question MarkI am forming a multi-media production/publishing entity which focuses on educational, religious, & literary themes, as well as socio-political themes, which will be offered to religious & educational institutions, as well as the public at-large. In consideration of forming as either as an LLC or a 501(c)(3), 1)Can an LLC accept charitable contributions? 2)Can a 501(c)(3) also be a 527 corp? Answer

Question MarkIs there anything a nonprofit subsidiary can do to ward off a forced merger/consolidation with its nonprofit parent where the parent is the sole member of the subsidiary? Answer

Question MarkI worked for a non-profit with the mission of restoring a theatre, the current board has decided they are tired and wish to possibly dissolve the corporation and abandon the project. There are over $2.5 million in private and public funds invested in this project. Also the property is privately owned with a 95 year lease with the nonprofit. If the nonprofit should disband what happens to those funds that were invested? Can the capital improvements be turned over to a for profit corporation? Answer

Question MarkOur organization temporarily lost the status of the public charity with the IRS, because we did not fill out form 8374 in time. Now the form is at the IRS, but in the meantime we need to know if we can apply for the grants and accept donations from our supporters? Answer

Question MarkMy organization is creating a separate 501(c)(3) foundation. Bylaws of the foundation state there are no dues. The organization would like to donate part of their yearly dues to the foundation. Is this appropriate? Answer

Question MarkUnder New Jersey Law, are members of a nonprofit organization entitled to a listing of its members with names, addresses, phone numbers and email information? Answer

Question MarkI work for a non-profit education foundation that awards grants to synagogues (primarily) and some religious schools for family education programs. Do the grantees have to renew their 501(c)(3) certification or is it a one time thing? Answer

Question MarkA Board Member who has resigned has asked to continue to receive Board minutes. This person may rejoin our Board again in the future. We are a Private Foundation. Our Board Minutes often have sensitive and confidential information. Should we provide the minutes to this person? Answer

Question MarkI am the president of a nonprofit football league and also a photographer. I take photographs for several teams in the league and sell copies to parents if they want them. I don't get paid by the league. I was told that I would have to either stop taking the pictures or resign my position as president because this activity is illegal. Is there such a law? Answer

Question MarkWhen hosting an event or fundraiser and we use the phrase: "a portion of the proceeds to benefit..." are we legally obligated to state what portion is directed to the non-profit, if asked? Answer

Question MarkWe are in the process of updating our by-laws. Is there a specific procedure we must follow by state/federal law to do this? Answer

Question MarkCan personal legal ramifications (for example, safeguarding a board member's personal assets from lawsuit) be curtailed by establishing an indemnification clause in a nonprofit's bylaws? Answer

Question MarkWe award grants to community based organizations for educational projects within in their communities. We would like to display photos of children engaged in these educational activities on our website. What are the legal things we need to consider? Answer

Question MarkI am the co-founder of a new non-profit organization and the question has come up as to whether or not I can assume a paid position within the organization. Can a co-founder ethically become an executive director? Answer

Question MarkI have a 509(a)(1) organization and would like to use an organization’s 501(c)(3) status [to obtain contributions]. Is there a group I can use as an incubator until I get a 501(c)(3) status? Answer

Question MarkHow can I stop my Church from withdrawing money from the “principal” of our endowment? Our church raises $100,000 a year but spends $250,000. Our pastor says we should be thankful we have the endowment for this purpose. Answer

Question MarkIf my city gives our charitable organization a house to use as a shelter can it be used as in-kind money? Answer

Question MarkCan a charity give money to a charity created by a politician who currently holds office and is running for office? Answer

Question MarkA Board on which I serve wants to have a raffle that will give away money and a car. Can you tell me what the dollar threshold is for reporting the winnings to the IRS. Must we ask for people to give their SS# in order to collect their prize? Answer

Question MarkIf people give money specifically designated towards a “building fund” of a church for a new sanctuary, and some of the money is used to build the pastor a new office in the OLD building by vote of the deacon board (without congregational input), is this permissible? If people contribute money specifically earmarked for a new vcr/tv setup for a Sunday school room, and it is used instead for 'general funds' purposes, is this permissible? Answer

Question MarkI want to spend the rest of my life creating and directing musical choral ensembles. Is a nonprofit organization the way to go? Answer

Question MarkI have been concerned about a drop in my church’s endowment from 160mm to 90mm from 2000 to 2003. It is now 100mm. The head of the investment committee is a broker. I am a Chartered Financial Analyst, my polite inquiries have not been received well... Have fiduciary boundaries been approached? What can I do? Answer

Question Mark501(c)(3) versus 509(a)(1). What is the difference between these two statuses? Answer

Question MarkOur synagogue wants to acquire several bank certificates of deposit for different terms. Our president and financial secretary will be the signatories. Can these signatories be changed if we elect new officers? Will there be a penalty? Answer

Question MarkThank you for the information on in-kind things. (See To the Point, June 1-15, 2004.) Just 2 weeks ago I attended a workshop given by the IRS and they told me we could not report the in-kind support we received in the way of office supplies, health insurance and liability insurance coverage for our employees, postage cost etc. Now I think they gave me the wrong information. The organization that gave us that start up support has given us a copy of their monthly accounting reports that verify what they contributed to us in 2003 well over $25,000. As of October 1, 2003 we are totally independent of the in-kind they were helping us with. It has been replaced with a direct grant and we have set up our own relationships with vendors. Answer

Question MarkWe are a new charity that has not received any grants or other cash donations yet, but have received in-kind services. Do we still have to file a Form 990? Answer

Question MarkIs a nonprofit organization required to allow the public to sit in on its entire Board Meeting or just the part allocated for Public Comment? Answer

Question MarkCan the directors of our nonprofit corporation vote by proxy? Answer

Question MarkIf our charity creates a limited liability company in which the charity is the sole member and a donor gives it a piece of real estate, will the donor be entitled to a charitable contribution deduction? Answer

Question MarkFor code of conduct and falsifying fact issues within a committee, after raising it to the chair of the Board, no resolution was achieved. Where is the next authority to report such issues? Any organization governing nonprofit organizations? Answer

Question MarkHow long is a nonprofit required to retain General Ledgers and other original books of financial records? If the guidelines state “in perpetuity,” what constitutes perpetuity when an organization is 100 years old? Answer

Question MarkI’ve been the executive director of my organization about 20 years. We had a good year this year and my board wants to give me a one-time “achievement bonus” of a few thousand dollars. Is this okay? Answer

Question MarkI am trying to find out how quilts can be donated to a museum and deducted from taxes. I need a copy of the form and an explanation if the amount is over $5000. Answer

Question MarkOur small performing arts organization has no directors and officers insurance and no indemnification clause in its bylaws. When I asked about this, I was told that the state law protects us so that it is unnecessary. Is that correct? Answer

Question MarkOur nonprofit sponsors a tour of musicians. Do we have to take out Social Security and taxes, or may we simply pass the honorarium along to them? Answer

Question MarkHow much surplus revenue can a nonprofit organization maintain in its treasury?Answer

Question MarkMy son belongs to a performing arts group, where there has been some highly irregular activity by chaperones, including the director, on trips. Both adults and kids have gotten drunk and much of the behavior has been unmannerly. The board knows we don’t approve, but doesn’t seem to care what we think. As parents, how do we confront the board and prevent something tragic from happening? Answer

Question MarkMy company assists not-for-profit organizations and I need to track down what legal percentage a not-for-profit can spend on administrative costs.Answer

Question MarkOur Board of Directors is about to negotiate a new 20-year lease with our landlord. We are concerned that the Board members who are signing the lease won’t be personally liable for the lease if, worst case scenario, our organization becomes bankrupt. Answer

Question MarkA friend of mine had a horrible horseback riding accident and is paralyzed from the waist down. He has no health insurance. Several of his friends are willing to raise money for his medical care and I am wondering what sort of trust, foundation or other entity should be set up so that donations could be tax deductible. Answer

Question MarkCan I be held accountable if I do not agree with a board decision that is too risky and causes damage? Answer

Question MarkI am a member of a nonprofit organization. The directors say they do not have to hold open meetings. Is this OK?