Pro Bono Partnership of Atlanta
Many nonprofits use games, such as raffles or BINGO, as a fun, buzzworthy way to raise funds for the organization. In Georgia, we have some very clear laws that govern fundraising activities, such as raffles, door prizes and BINGO. In this episode of the PBPA Podcast, Thomas Federico with the Pro Bono Partnership of Atlanta …
Does your nonprofit host auctions with a live auctioneer? Nonprofits that engage in live auctions should be aware of the Georgia Auctioneers Law (the “GAL”). The GAL requires organizations that conduct live auctions to use a licensed auctioneer, with limited exceptions. Read this article, to understand whether your nonprofit’s auctions might be exempt or if they …
Whether your nonprofit is ready to hire its first employee or is looking for a new payroll service, nonprofit leaders should be aware of both general and nonprofit payroll compliance considerations. In this episode of the PBPA Podcast, Kadale Lubin with Ford Harrison will talk to us about legal requirements to efficiently manage payroll. This …
The Corporate Transparency Act places certain new filing requirements and carries penalties for corporate entities. Many, but not all, nonprofits are exempt from the filing requirements of the new law. Is your nonprofit exempt? Learn more about the Corporate Transparency Act and which tax-exempt entities are exempt from its filing requirements in this article from …
Does your nonprofit organization contact individuals by phone using prerecorded messages? Perhaps a prerecorded voice message is used to invite people to an event or to remind them to vote in an upcoming election. If so – and if the people you are calling have not previously consented to receiving prerecorded messages from your nonprofit …
Charitable solicitation refers to the act of requesting donations or contributions for charitable causes and endeavors. As a 501(c)(3), you probably engage in charitable solicitation almost daily. In most jurisdictions, it is a legal requirement to register with the state before soliciting donations. But registering for charitable solicitation can get confusing, especially if you have …
The IRS’ Tax Exempt Organization Search (“TEOS”) is an excellent resource to find certain IRS-related nonprofit records, such as 990s since 2017 or exemption letters filed since 2014. The IRS website has a new electronic form to request additional information related to tax-exempt organizations. Submit the electronic Form 4506-B to obtain copies of a nonprofit’s …
Picture this: your nonprofit has been diligently working towards its mission, making a positive impact in your community, and enjoying the benefits of tax exempt status under Section 501(c)(3) of the Internal Revenue Code. But one day you receive a letter from the IRS telling you that your organization’s 501(c)(3) status has been revoked. What …
A “charitable sales promotion” is a popular form of cause marketing that allows businesses to support charitable organizations while promoting their own products or services. “Friday Donut Sales to Support Local Shelter” or “Restaurant Proceeds go to Food Bank” entice consumers to make purchases with the promise of supporting a charitable initiative. Whatever the arrangement may be, …
Keep your corporate registration in good standing by renewing it annually. Georgia nonprofits must renew their registration with the Office of Secretary of State every year, between January 1 – April 1. You must renew during this window regardless of when you filed your initial registration (for example, if you registered with the Secretary of …
Despite being exempt from federal income tax in most cases, 501(c)(3) organizations still have to pay many taxes. For example, tax-exempt nonprofits may find themselves paying personal property taxes in Georgia on items like machinery and computers under certain circumstances. This article by Becky Gula and Vianca Orina with DLA Piper discusses how personal property is taxed …
“I Want To See Your 990!” How should a nonprofit respond when an individual demands copies of its filings? 501(c)(3) nonprofit organizations are legally required to disclose certain information. This article outlines what information 501(c)(3)s must make publicly available, recommendations for handling requests for information, and potential penalties if a nonprofit does not respond to a request …
Does your nonprofit have a written Document Retention Policy? The Internal Revenue Service (“IRS”) asks in the Form 990, the annual information return filed by most tax-exempt organizations, several questions about board structure and organizational policies, including whether the entity has a written document retention policy. This article covers some basics regarding document retention policies, …
Generally speaking, a donation to a §501(c)(3) nonprofit charitable organization IS tax-deductible, but a gift to an individual is NOT. This means that donors and §501(c)(3) nonprofit organizations may not skirt this rule by passing payments from donors, through the nonprofit organization, to specific individuals. An organization that participates in this type of transfer — …
Start the year off right by submitting IRS filings, completing local renewals and sending out donor acknowledgements on time. This Article includes a checklist of common items that most Georgia nonprofits should have on their legal maintenance “to do” list for January, including W-2s, donor acknowledgements, and Georgia Secretary of State corporate renewals.
As a Georgia nonprofit, are you supposed to: (a) pay sales tax on items you buy? (b) charge sales tax on items you sell? (c) charge sales tax on fundraising activities including admissions to our galas, golf tournaments, and fun runs or (d) all of the above? Much of the time, the answer is (d) …
Georgia has indefinitely extended sales and use tax exemptions for nonprofit volunteer health clinics, nonprofit health centers and qualified food banks. Read this article to learn more about applying for sales and use tax exemption letters of authorization.
In Georgia, most §501(c)(3) tax-exempt organizations ARE NOT exempt from paying sales and use tax in Georgia. The Georgia Department of Revenue (GA DOR) realized that many tax-exempt organizations are not aware of their sales tax obligations especially regarding their fundraising activities. So, on July 2, 2020, the GA DOR issued a comprehensive bulletin on …
Does your nonprofit make online sales to customers in other states? Until recently, states were not able to require out-of-state retailers to collect and remit sales tax solely for online sales. This article reviews recent changes in the law that permit states, within certain limits, to require out-of-state retailers to collect and remit sales tax …
Nonprofit §501(c)(3) organizations are permitted to engage in some lobbying activities, just not a substantial amount. Nonprofits that do engage in lobbying, like their for-profit peers, have significant obligations to register and report their lobbying activities in the State of Georgia. Rules vary depending on the level of state government or type of government entity …
Your organization may be required by the state of Georgia to get an audit. Although some organizations are exempt, most nonprofit organizations must register for charitable solicitation in order to solicit donations in the state of Georgia. In order to register for charitable solicitation in Georgia, an organization must submit certain financial statements. Financial statements …
Does your nonprofit own real estate in Georgia? Are you paying your property taxes annually? Yes, even though your organization has a tax-exemption from the IRS, that does not mean it is exempt from paying property taxes in Georgia. All real property in Georgia in taxable, UNLESS it is specifically exempted. That means unless your …
Up to now only section 501(c)(3) public charities with assets totally $10 million or more and those filing Form 990-N were required to file electronic Form 990s. With the Taxpayer First Act, all 501(c)(3) public charities will be required to file their Form 990, Form 990EZ or Form 990N electronically. This requirement will be phased …
As a Georgia nonprofit: (a) do we pay sales tax on items we buy? (b) do we have to charge sales tax on items we sell? and (c) do we have to charge sales tax on fundraising activities including admissions to our galas, golf tournaments, and fun runs? Much of the time, the answer is …