Pro Bono Partnership of Atlanta

Compliance & Filings

Don’t Be an April Fool: Renew Your Georgia Nonprofit Corporation Registration

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 State on August 9, your renewal is not based on your registration anniversary - it is due between January 1 – April 1).  You can renew your annual registration online with the Georgia Corporation Division.   Read this article to learn more about annual nonprofit filings and renewals.

[pdf-embedder url="https://pbpatl.org/wp-content/uploads/2021/01/Your-Nonprofits-Checklist-for-Annual-Filings-and-Renewals.pdf" title="Your Nonprofit’s Checklist for Annual Filings and Renewals"]

About the Expired Form I-9

Employers may see that the Form I-9 in their “new employee document packet” was set to expire on October 31, 2022.  Where is the updated form?  Read this article from Littler to learn more about what nonprofit employers should provide to their new hires completing their Form I-9s. 

When Does a Georgia Nonprofit Owe Personal Property Tax?

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 in Georgia, what exemptions are available to nonprofits, and what nonprofits can do to avoid a property tax surprise.

Personal-Property-Taxation-for-Georgia-Nonprofits

What Does My 501(c)(3) Have to Show the Public?

“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 for information.

Article: What Are the Public Disclosure Requirements for a 501(c)(3)?

[pdf-embedder url="https://pbpatl.org/wp-content/uploads/2021/10/What-Are-the-Public-Disclosure-Requirements-for-a-501c3.pdf" title="What Are the Public Disclosure Requirements for a 501(c)(3)"]

Document Retention Policies as a Best Practice

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, including what it should cover and how it can be maintained. See this article for more details on which documents must be made available for public inspection and a sample document retention policy. [pdf-embedder url="https://pbpatl.org/wp-content/uploads/2021/06/Document-Retention-Policies-as-a-Best-Practice.pdf" title="Document Retention Policies as a Best Practice"]

Staying Tax-Exempt: Avoiding Pass-Through Payments to Individuals

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 — called a “pass-through payment” — on a regular and ongoing basis is at risk of losing its §501(c)(3) tax-exempt status.  Read this article to learn more about how your donors might fund specific causes at your nonprofit, while avoiding pass-through payments.
[pdf-embedder url="https://pbpatl.org/wp-content/uploads/2021/04/Staying-Tax-Exempt-Avoiding-Pass-Through-Payments-to-Individuals.pdf" title="Staying Tax-Exempt-Avoiding Pass-Through Payments to Individuals"]

Your Nonprofit’s Checklist for Annual Filings and Renewals

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. [pdf-embedder url="https://pbpatl.org/wp-content/uploads/2021/01/Your-Nonprofits-Checklist-for-Annual-Filings-and-Renewals.pdf" title="Your Nonprofit’s Checklist for Annual Filings and Renewals"]

Webcast: What is the Latest on Nonprofit Fundraising and Sales Tax?

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) all of the above!

In July, the Georgia Department of Revenue (“DOR”) answered the question above in a comprehensive bulletin on how and when sales and use tax applies to nonprofit fundraising activities. During this presentation, our speakers will review the new bulletin from the DOR and:

  • Provide an overview of sales taxes and use taxes in Georgia;
  • Explain how sales tax is collected and remitted in Georgia;
  • Describe the structure of exemptions to sales tax and some limited exemptions; and
  • Discuss whether sales tax must be collected when conducting various fundraising activities.

Speakers: Richard Litwin, Litwin Law and Robyn Miller, Senior Corporate/Tax Counsel, Pro Bono Partnership of Atlanta

View the webcast Slides - Sales Tax and 501c3 [pdf-embedder url="https://pbpatl.org/wp-content/uploads/2020/11/Slides-Sales-Tax-and-501c3s-2.pdf" title="Slides - Sales Tax and 501(c)(3)s 2"]

Sales Tax Exemptions Extended Indefinitely for Certain Nonprofits

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.

[pdf-embedder url="https://pbpatl.org/wp-content/uploads/2020/08/Sales-Tax-Exemptions-Extended-Indefinitely-for-Certain-Nonprofits.pdf" title="Sales Tax Exemptions Extended Indefinitely for Certain Nonprofits"]

 

Georgia Department of Revenue Provides Detailed Guidance on Sales Tax and Nonprofit Fundraising

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 how and when sales and use tax applies to nonprofit fundraising activities. The bulletin explains 13 different fundraising scenarios and their sales tax implications. For instance, does your nonprofit have to collect sales tax on the sale of an auction item donated to your organization? What if you host a road race and charge an admission fee to raise funds? Should sale tax be charged on golf tournament entry fees or mulligans? Those and many more questions are answered in this bulletin.

Changes in Sales Tax Obligations for Nonprofit Online Retailers

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 for online sales. [pdf-embedder url="https://pbpatl.org/wp-content/uploads/2020/05/Sales-Tax-Obligations-of-Online-Retailers.pdf" title="Sales Tax Obligations of Online Retailers"]

Webcast: Georgia Lobbying Registration and Reporting Requirements for Nonprofits

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 the nonprofit is seeking to influence.

View the webcast here

View Lobbying in Georgia slides in new tab

[pdf-embedder url="https://pbpatl.org/wp-content/uploads/2020/02/LobbyinginGeorgia_Nov_2019.pdf"]

Do I Need A Full-Blown Audit? (Required Financial Disclosures for Charitable Organizations in Georgia)

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 are also required for renewing charitable solicitation registration. The level of financial statement required to be submitted varies depending on how much money the organization received in the preceding fiscal year. Audit Needs for Nonprofits [pdf-embedder url="https://pbpatl.org/wp-content/uploads/2019/11/Nonprofit-Notes-Audit-Needs-for-Nonprofits-3-19.pdf" title="Article- Do I Need A Full-Blown Audit? Required Financial Disclosures for Charitable Organizations in Georgia"]

Fall Is Property Tax Payment Season!

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 nonprofit specifically applied for and was granted an exemption from property taxes for each parcel of real property it owns, then your organization owes property taxes. Fall is property tax season [pdf-embedder url="https://pbpatl.org/wp-content/uploads/2019/10/Nonprofit-Notes-Property-Tax-Article-9-19.docx.pdf" title="Article: Fall Is Property Tax Payment Season!"]

Mandatory Electronic Filing of Form 990s

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 in over the next couple of years. Mandatory Filing of Form 990s [pdf-embedder url="https://pbpatl.org/wp-content/uploads/2019/07/Article-Mandatory-Electronic-Filing-of-Form-990s.pdf" title="Article - Mandatory Electronic Filing of Form 990s"]

Webcast: Fundraising and Sales Tax – What Every Nonprofit Needs to Know

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 yes! Nonprofits in Georgia are not automatically exempt from sales tax. During this presentation, our speakers will: - Provide an overview of sales taxes and use taxes in Georgia; - Explain how sales tax is collected and remitted in Georgia; - Describe the structure of exemptions to sales tax and some limited exemptions; and - Discuss whether sales tax must be collected when conducting various fundraising activities. View the webcast here. Fundraising and Sales Tax [pdf-embedder url="https://pbpatl.org/wp-content/uploads/2019/05/Slides-Sales-Tax-and-501c3s.pdf" title="Slides- Sales Tax and 501(c)(3)s"]

Large Employers Take Note: Controversial Pay Data Portion of EEO-1 Report Reinstated

If your nonprofit organization has 100 or more employees, or if it is a federal government prime contractor or first-tier subcontractor with 50 or more employees and a prime contract or a first-tier subcontract amounting to $50,000 or more, the organization is required to file an EEO-1 report with the Equal Employment Opportunity Commission (EEOC). This article provides important information about upcoming new requirements for your EEO-1 report filing, including the reporting of pay data. Controversial Pay Data Portion of EEO-1 Report Reinstated [pdf-embedder url="https://pbpatl.org/wp-content/uploads/2019/03/Large-Employers-Take-Note-Controversial-Pay-Data-Portion-of-EEO-1-Report-Reinstated.pdf" title="Article: Large Employers Take Note: Controversial Pay Data Portion of EEO-1 Report Reinstated"]

Webcast: Maintaining Your Tax Exempt Status When You Have Close Ties with a Separate For Profit

Many small nonprofits have close ties to separate for-profit corporations. - Does a for-profit provide a lot of your 501(c)(3)'s support? - Was your 501(c)(3) public charity started by a for-profit entity that does similar or connected work to your 501(c)(3)? - Do you share clients or refer clients to one another? These scenarios, plus others, may risk the 501(c)(3)'s public charity and tax-exempt status if not closely evaluated. During this webcast, our speaker will discuss these risks and how to manage them. Speaker: Robyn Miller, Senior Tax/Corporate Counsel at Pro Bono Partnership of Atlanta Click here to view the webcast. Slides - Maintaing Your Tax Exempt Status When You Have Close Ties With A Separate For Profit [pdf-embedder url="https://pbpatl.org/wp-content/uploads/2018/12/Slides-Maintaining-Your-Tax-Exempt-Status-When-You-Have-Close-Ties-with-a-Separate-For-Profit.pdf" title="Slides- Maintaining Your Tax-Exempt Status When You Have Close Ties with a Separate For-Profit"]

Georgia Sales Tax Obligations For Gala Ticket Charges and Silent Auctions Sales

Nonprofit organizations that hold fundraisers or sell merchandise must be cognizant of sales tax collection obligations. Many nonprofit organizations think that they are not obligated to collect sales tax. Perhaps they believe that they are not required to collect tax because they do not routinely sell products or tickets. Some organizations think that their exemption from federal income tax extends to sales tax. But nonprofit organizations, with a few exceptions, are required to collect sales tax (and required to pay sales tax on purchases). This article provides guidance to nonprofits on their sales tax obligations regarding gala ticket and silent auction sales. [pdf-embedder url="https://pbpatl.org/wp-content/uploads/2018/10/Article-Georgia-Sales-Tax-Obligations.pdf" title="Article- Georgia Sales Tax Obligations"]

Does Your Nonprofit Need a Business License?

Updated August 3, 2022 Some counties and cities in Georgia require nonprofits to register for a business license. Find out more about what is required. Does Your Nonprofit Need a Business License [pdf-embedder url="https://pbpatl.org/wp-content/uploads/2022/08/2022-Update-PBPA-Article-Does-Your-Nonprofit-Need-a-Business-License-2.pdf" title="2022 Update - PBPA - Article Does Your Nonprofit Need a Business License?"]

Don’t Forget to Acknowledge Year-End Donations!

It's that time of year again. For nonprofits, December has little to do with Santa Claus and everything to do with fundraising. While your nonprofit is focused on bringing donations in, don't forget to get those donation acknowledgments out. You always want to thank your donors, but the IRS actually requires that you send an acknowledgment to your donors in certain situations. The IRS also has guidelines for what those acknowledgments should say and deadlines for sending them. Our gift to you this year is our recently updated guide for sending donation acknowledgments. Other information about the legal requirements associated with fundraising can be found in the resources section of our website. Read the entire article Guide to Sending Acknowledgements for Donation by clicking here. Read the entire article Vehicle Donations by clicking here.

Registering To Do Business in Georgia

Did you get incorporated in one state and then move your operations? A nonprofit organization’s tax-exempt status is tied to its incorporation. The IRS decides whether to recognize a nonprofit as tax-exempt under §501(c)(3) of the Internal Revenue Code based on its articles of incorporation and bylaws. If your organization incorporates in one state and obtains its §501(c)(3) status then later decides to move states, the organization should not reincorporate in the new state. The organization should instead maintain its incorporation in the original state (including filing its annual registration and reports) and also register as a foreign corporation in the new state, if required to do so under that state’s law. For more information about registering as a foreign nonprofit corporation in Georgia, please see the article attached. Registering To Do Business in Georgia

Webcast: Property Tax for Nonprofits

Does your nonprofit own real property? Does it plan to purchase real property (or hope to have it donated)? If so, don't assume that your nonprofit will not have to pay property tax. Real property owned by a 501(c)(3) tax-exempt nonprofit organization in Georgia is not automatically exempt from property tax. The property must qualify for one of the listed exemptions and the owner must apply for exemption and be approved. This webcast will cover basic information on whether a nonprofit's owned real property is exempt from Georgia's property tax, how to apply for property tax exemption, and best practices for maintaining that exemption. Presenter: Madison Barnett, Sutherland Asbill & Brennan LLP