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 …

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 …

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. 

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 …

“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 …

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 …

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 …

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 …

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 …

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 …

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 …

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. …

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 …

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 …

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 …

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 …

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 …

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 …