Nonprofit Law Resource Library, Hurwit & Associates

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Hurwit & Associates' Nonprofit Law Resource Library contains information on a number of subjects pertaining to nonprofit law including nonprofit start-up issues, state filing and compliance, governance and board questions, mergers and affiliations, nonprofit entrepreneurship, charitable contributions and more.

Please refer to the index below for a complete listing of resources and a brief description of each.

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Tax-Exempt Organization News

Nonprofit Law Seminars - Information on our past and upcoming seminars on topics including:

» Starting a Nonprofit Organization
» The Nonprofit Entrepreneur: Current Legal & Organizational Issues
» Legal Issues for Private Foundations
» Nonprofit Governance: An Introduction to Current Legal and Ethical Issues

Nonprofit Law Resource Library

Starting Up: Nonprofit & Foundation Basics
- Tax-Exempt Organization Reference Chart - A reference chart listing the various categories of tax-exempt 501(c) organizations and detailing the sub-categories of 501(c)(3) charitable, educational, religious, scientific and literary organizations.
- Starting a Nonprofit Organization - This article describes the basic steps involved in starting a nonprofit organization.
- Family Foundation Pros & Cons - This article outlines the advantages and disadvantages of starting a foundation.
- Applying for Exempt Status - A link to the IRS publication, "Applying for 501(c)(3) Tax-Exempt Status".
- Form 1023 FAQ - A link to the IRS' "frequently asked questions" about Form 1023
- Q & A - This article discusses the benefits of incorporating an organization that is applying for tax-exempt status.
State-By-State: Filings & Compliance

Initial Filings for Nonprofit Organizations
Annual Filings for Nonprofit Organizations
International Philanthropy & NGOs
- International Grantmaking - This article discusses international grantmaking from the perspective of U.S. public charities and private foundations including a discussion of expenditure responsibility and equivalency determination. Links to additional resources on international grantmaking are also provided.
- US vs. UK Giving - A look at the differences between philanthropic giving in the U.S. and U.K.
- Challenges of US Fundraising - A discussion of the challenges facing U.K. charities when raising funds in the U.S.
- Transatlantic Gifts - This article discusses the three methods of making transatlantic gifts: donating to a related charity within the U.S., donating to U.S. nonprofits that are specially designed to encourage transatlantic gifts, and starting an American Friends group.
- Tax Deductibility of Charitable Gifts - This article disucsses the possibility of the U.K. moving to a U.S.-style system of receiving tax deductions for charitable gifts.
- UK Endowment Funds - A discussion of the benefits of permanent endowment funds.
- Legal Responsibilities of US "Friends" Organizations - This article makes recommendations on how to start a U.S.-based "friends" organization and the legal requirements in doing so.
- Governance & Stewardship - A discussion of nonprofit governance, stewardship and U.S.-based "friends" organizations. This article is excerpted from a presentation given by Jeff Hurwit at the World Association of Non-Governmental Organizations' Coference in November, 2005
- US "Friends" Organizations - This article discusses the factors to consider before starting a U.S.-based "friends" organization.
- US "Friends" Organizations - Misconceptions - This article discusses the process of starting a U.S.-based "friends" orgainzation and some common misconceptions.
Canada: Filings & Compliance

Initial Filings for Nonprofit Organizations
Annual Filings for Nonprofit Organizations
Nonprofit Organizational Charts
- Tax-Exempt Organization Reference Chart - A reference chart listing the various categories of tax-exempt 501(c) organizations and detailing the sub-categories of 501(c)(3) charitable, educational, religious, scientific and literary organizations.
- Traditional Nonprofit Organizational Structure - An organizational chart detailing the traditional structure of a nonprofit organization.
- Traditional Organizational Structure of Foundations - An organizational chart detailing the traditional structure of a foundation.
- Methods of Appointment to Nonprofit & Foundation Boards - A chart detailing the various methods of appointment to nonprofit and foundation boards.
- Honorary & Adjunct Boards - An organizational chart detailing the structure of honorary and adjunct boards.
- Nonprofit Structure with Advocacy & Commercial Components - Version A - An organizational chart detailing a potential structure of a nonprofit organization with advocacy and commercial components.
- Nonprofit Structure with Advocacy & Commercial Components - Version B - An organizational chart detailing a second potential structure of a nonprofit organization with advocacy and commercial components.
Mergers, Affiliations & Re-Organizations
- Four Basic Models of Affiliation - This article discusses four basic models of nonprofit affiliation: contractual relationships, strategic alliances, mergers, and consolidation.
- Q & A - This Q & A section discusses nonprofit mergers and the distinction between a nonprofit merger and a dissolution, the implications of a nonprofit organization moving to another state and re-incorporating versus registering as a foreign nonprofit corporation, and the reasons for nonprofit reorganizations.
Nonprofit Governance, Boards & Bylaws
- Outline of Board Roles & Responsibilities - This article outlines the legal/fiduciary responsibilities of nonprofit board members.
- Governance & Stewardship - A discussion of nonprofit governance, stewardship and U.S.-based "friends" organizations. This article is excerpted from a presentation given by Jeff Hurwit at the World Association of Non-Governmental Organizations' Coference in November, 2005.
- Conflict of Interest Policies - This page demonstrates two sample nonprofit bylaw provisions for conflicts of interest.
- Sample Bylaw Provision: Indemnification - This page details a sample nonprofit bylaw provision for indemnification.
- Board Meeting Dynamics - A discussion of board meeting dynamics and the purpose of a board of directors in a nonprofit organization.
- Nonprofit Strategic Planning - This article discusses the pros and cons of strategic planning in non-profit organizations.
- Board Roles & Expectations - Discusses the roles and responsibilities of nonprofit trustees.
- Q & A: Bylaws & Members - This Q & A section discusses the confusion over the term "members" in a nonprofit organization, and dysfunctional or confusing nonprofit bylaws.
- Q & A - This article discusses the confusion over the term "shareholder" in a nonprofit setting.
- Alliance for Charitable Reform
- Panel on the Nonprofit Sector
- U.S. Senate Finance Committee - 2004 Discussion Draft
Nonprofit Financial Accountability & Sarbanes Oxley
- Sarbanes-Oxley and Nonprofit Organizations - This article discusses the Sarbanes-Oxley Act passed in 2002 and its applicability to nonprofit organizations in the areas of document retention and whistle blower policies.
- Checklist for Nonprofit Accountability
- Sarbanes-Oxley - Checklist for Charities and Foundations
- Sarbanes Oxley - Implications for Nonprofits
- Standards for Charity Accountability
- Financial Accountability and Audit Committees
- California Nonprofit Integrity Act of 2004
Liability, Risk Management & Insurance
- Outline of Risks & Protections - This article discusses the many aspects of nonprofit liability including: statutory charitable immunity, general corporate protection, statutory immunity of voluntary officers and directors, indemnification, insurance options, contractual indemnifications, representations, releases and waivers, and general risk management techniques.
- Protecting Your Tax-Exempt Status - This article discusses specific preventive measures that nonprofit organizations can take to protect their tax-exempt status and improve an organization's dealings with the IRS, the media, and the public.
- Sample Bylaw Provision: Conflicts of Interest - This page demonstrates two sample nonprofit bylaw provisions for conflicts of interest.
- Sample Bylaw Provision: Indemnification - This page details a sample nonprofit bylaw provision for indemnification.
- Q & A - This Q & A section discusses the legalities of a defamation claim.
- Nonprofit Risk Management Center
- Risk Management Resource Center
Tax Exemption
- Protecting Your Tax-Exempt Status - This article discusses specific preventive measures that nonprofit organizations can take to protect their tax-exempt status and improve an organization's dealings with the IRS, the media, and the public.
- Legal Perspectives for Nonprofit Managers - This article discusses the IRS guidelines for tax-exempt status and the implications that commercial activities and unrelated business income have for nonprofit organizations and their managers.
- Compliance Guide for 501(c)(3) Public Charities
- Compliance Guide for 501(c)(3) Private Foundations
- IRS Public Disclosure Requirements
- Q & A - This Q & A section discusses the tax implications of commercial activities carried on by a nonprofit organization and the effect those activities have on an organization's tax-exempt status.
Executive Compensation & Intermediate Sanctions
- Overview & Checklist - This article outlines the IRS' three-part test to determine if an organization is in compliance with the intermediate sanction regulations.
- IRS Excess Benefits Article
- Q & A - This Q & A section discusses reasonable compensation packages for nonprofit directors and potential conflicts of interest.
Lobbying & Advocacy
- Lobbying & 501(c)(4) Primer - This article discusses lobbying, 501(c)(4) organizations, and the implications that lobbying activities have for a 501(c)(3) organization.
- Revenue Ruling 2004-6
- Alliance for Justice
- Q & A - This Q & A section discusses lobbying, jeopardizing an organization's tax-exempt status through political campaign activities, and misallocating funds held for charitable purposes.
The Nonprofit Entrepreneur
- Entrepreneurial Museum - This article discusses misconceptions about nonprofit commercial ventures, defines UBIT (unrelated business income taxes), outlines the basic legal guidelines for commercial ventures, and lists some exclusions to UBIT as applied to museums.
- Intellectual Property - This article discusses intellectual property rights (copyrights, trademarks, published materials, research, work processes, methodologies, and other trade secrets) as they apply to nonprofit organizations and includes a sample provision to be used in contracts in order to protect an organizations assets.
- Trends & Predictions - This article takes a look at what lies ahead in the coming decade for nonprofit organizations.
- Revenue Ruling 2004-51
- Q & A - This Q & A section discusses two specific cases of nonprofit commercial ventures and their tax implications.
Taxation of Unrelated Business Income
- UBIT: A Food & Facilities Tax Primer - This article explains the three major exclusions to UBIT relating to museum food service.
- Taxation of Unrelated Business Income - This article introduces the concept of UBIT (unrelated business income taxation), defines unrelated business income, and outlines exclusions from UBIT, its special applications, and its computation and payment.
- Q & A - This Q & A section discusses two specific cases of nonprofit commercial ventures and their tax implications.
Fundraising
- Foundation Giving - A discussion of the various types and sizes of U.S. foundations and their giving tendancies.
- Fundraising Mistakes - A discussion of fundraising appeals and samples of what does not work.
- Heroes & Villains - This article discusses various grant-making institutions and their methods of operation.
- Restricted Gifts - This article discusses restricted gifts and the burdens they can place on charities.
- Transatlantic Gifts - This article discusses the three methods of making transatlantic gifts: donating to a related charity within the U.S., donating to U.S. nonprofits that are specially designed to encourage transatlantic gifts, and starting an American Friends group.
- Fundraising on the Internet - A discussion of the impact of the internet on fundraising research.
- Fundraising Letters - This article discusses fundraising letters and provides suggestions for increasing yields.
- Phone Solicitations - A discussion of phone solicitation campaigns and suggestions for improving their yields.
- Fundraising Fact and Fiction - A discussion about fundraising including restricted gifts, matching grants and loans to charities.
- Gauging Foundations - This article discusses the different stages of foundation grant approval.
- Understanding Donors - A discussion of the needs and wishes of the various catetories of donors including trusts, foundations, corporations, and individuals.
- Community Foundations - This article discusses community foundations and how they work.
- Fundraising & Trustees - This article discusses the trustee's role in raising funds for a charity.
Charitable Contributions
- IRS Requirements - A link to the IRS publication, "Charitable Contributions - Substantiation and Disclosure Requirements".
- Transatlantic Gifts - This article discusses the three methods of making transatlantic gifts: donating to a related charity within the U.S., donating to U.S. nonprofits that are specially designed to encourage transatlantic gifts, and starting an American Friends group.
- Q & A - This extensive Q & A section discusses various issues related to charitable contributions including: substantiation and disclosure requirements for donations, deductibility limits for contributions, contributions of non-cash property, the tax benefits of the donation of appreciated stock, and the issues related to donors giving a "less-than-complete" interest in donated property.
Major Gifts, Grants & Restricted Funds
- Confusing Gift Terms - This article discusses how confusing gift terms can arise and what proactive steps a nonprofit organization can take to avoid this confusion.
- Q & A: Gifts & Grants - This Q & A section discusses various issues surrounding nonprofit donations including: the enforceability of promised grants, the offering and acceptance of a gift as a binding contract, and the legitimacy and enforceability of verbal pledges.
- Q & A: Restricted Funds - This Q & A section answers questions about the Cy Pres doctrine and the use of restricted funds for purposes other than those originally stated.
Links to Key IRS Web Pages
Links to Nonprofit Resources

Education & Training
News & Periodicals
Philanthropy
Ratings & Information
Venture Funding & Social Investing

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