Pro Bono Partnership of Atlanta

Fundraising

Protecting Your Nonprofit from Scams, Fraud & Imposters

Nonprofits of all types are susceptible to fraud, especially those with limited resources or lacking internal controls. It could come as an imposter creating a copycat webpage and taking donations intended for your 501(c)(3), or an email phishing scam to an unsuspecting employee. Is your nonprofit taking the appropriate steps to protect itself from potential fraud? In this episode of the PBPA podcast, Noula Zaharis, Director of the Securities and Charities Division at the Georgia Secretary of State, and Anna Burns, Southeast Regional Director of the Federal Trade Commission, share real-life examples of fraud they have investigated and tips on how to avoid becoming a victim.

Episode 29 Transcript

Links to Resources referenced in the episode:

Online Charitable Giving Portals | Federal Trade Commission (ftc.gov)

Start with Security: A Guide for Business | Federal Trade Commission (ftc.gov)

Raising Funds? What You Should Know About Hiring a Professional | Federal Trade Commission (ftc.gov)

Tips for Retailers: How to Review Charity Requests | Federal Trade Commission (ftc.gov)

Registering for Charitable Solicitation

Fundraising Consultants & Grant Writers: Legal Considerations for Working with Third-Party Fundraisers

To report a scam or fraud:

Georgia Secretary of State, Securities & Charities Division:  https://sos.ga.gov/how-to-guide/how-report-charity-scam or call 470-312-2640 or email charities@sos.ga.gov

Federal Trade Commission: www.reportfraud.ftc.gov.

Accepting Cryptocurrency Donations

Cryptocurrency is quickly becoming a popular form of currency, particularly among younger generations. Cryptocurrency owners may even look to donate their cryptocurrency to your organization. Are you ready? A nonprofit’s ability to receive cryptocurrency donations helps ensure that it is able to accept donations from all interested donors. Learn more about accepting cryptocurrency donations in the article below (or open in a new tab).

Accepting Cryptocurrency Donations

Legal Considerations of Online Fundraising Auctions: Make it a Win-Win Situation

Online auctions make it easy for nonprofits to connect with a wide audience in a convenient format.  They have also skyrocketed in popularity during the pandemic as a safe option for nonprofits to continue their fundraising efforts. In this episode of the PBPA Podcast, Mary Benton of Alston & Bird discusses legal considerations around online auctions, including the auction website provider’s terms & conditions, out-of-state bidders, and raffles held with online auctions.

 
Episode 20 - Hosting an Online Auction

 

Resources Referenced During this Episode:

Department of Revenue Bulletin | Fundraising Activities Conducted by Organizations Exempt from Federal Income Tax Under Internal Revenue Code §501(c)(3) 

Webcast | Using Intellectual Property with Social Media

Article  | Vehicle Donations

Article| Registering for Charitable Solicitation

Podcast | Acknowledgements: What To Include in a “Thank You” to Donors

Fundraising Consultants & Grant Writers: Legal Considerations for Working with Third-Party Fundraisers

Are you considering working with a third-party fundraiser, such as a grant writer or fundraising consultant? If working with an outside fundraiser is on your horizon, take a listen to this episode of the PBPA Podcast.  When do you need to file a fundraiser’s contract with the Secretary of State?  Can you pay them by percentage?  Justine Cowan, Corporate Counsel with PBPA, will answer those questions and more as she reviews legal and ethical considerations of working with outside fundraisers.

Links to Additional Resources Referenced in this Episode:

Registering for Charitable Solicitation

Contracts Basics for Nonprofits

Episode 20 Transcript

Episode 20 - Solicitors, Consultants & Grant-Writers - Legal Considerations for Working with Third-Party Fundraisiers

All Together Now: Practical Tips to Reduce Your Nonprofit’s Legal Risk for In-Person Events

Slowly but surely more in-person events are happening, whether they be client programming, outdoor festivals or indoor mini-fundraisers.  As your organization contemplates how and when to recommence in-person gatherings, we offer a few practical tips to mitigate your legal risks associated with holding live events in this article.

Tips to Reduce Legal Risks

All Together Now - Practical Tips to Reduce Your Legal Risk For In-Person Events

Webcast: When Others Fundraise for Your Organization

Often times individuals or groups of individuals want to help out 501(c)(3) nonprofits by raising money for them. They may hold a dinner with friends, a charity golf tournament, a benefit concert, or even a raffle with the proceeds going to an organization. Sometimes organizations are not even aware of these fundraising activities until the proceeds are handed to them. While these wonderful efforts and gestures help out 501(c)(3) nonprofits, they can also create risks for the organization. During this webcast, we will explore creating third-party fundraising protocols to encourage successful fundraising by others while reducing the risk to your organization.

Speaker: Robyn Miller, Senior Corporate/Tax Counsel, Pro Bono Partnership of Atlanta

View the webcast
3rd Party Fundraising

Final 3rd Party Fundraising Webinar

New Rules for UBIT: What You Need to Know About Siloing

You may be familiar with the fact that even tax-exempt organizations have to pay tax on income from an activity that is regularly carried on if it is not substantially related to the organization’s exempt purpose.  This is known as “unrelated business income tax” or UBIT. Under the 2017 Tax Cuts and Jobs Act (“TCJA”), tax-exempt organizations have to calculate UBIT differently than before.   With clear examples and hypotheticals, this article very generally explains the changes under the TCJA, and how they might be relevant to your organization.

New Rules for UBIT_What You Need to Know About Siloing

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

Slides - Sales Tax and 501(c)(3)s 2

Podcast | Acknowledgements: What To Include in a “Thank You” to Donors

This year, perhaps more than ever, you want to acknowledge donors for their contributions. In this episode of the PBPA podcast, we will be talking about thanking donors and written acknowledgements. When should a “thank you” to donors be sent? What are the specific legal requirements of the acknowledgement? During this podcast, our guest Robyn Miller answers these questions and more.

Listen to the podcast here

Episode 9 Transcript – What to Include in Thank you to Donors

Episode 9 Transcript - What to Include in Thank you to Donors

Comparison of Charitable Solicitation Compliance Companies

Updated August 3, 2022

Complying with charitable solicitation registration, annual renewals and filings, and disclosure statement requirements for multiple states takes a lot of time and requires detailed and dedicated focus. There are many companies that provide this service at a reasonable cost. This is a chart comparing various charitable solicitation compliance companies. Pro Bono Partnership of Atlanta does not endorse any of these companies.

Comparison of Charitable Solicitation Compliance Companies 

Comparison-of-Charitable-Solicitation-Compliance-Companies Aug 2022

The Rules For Giving Small Items In Return for a Contribution

Updated January 3, 2023

Remember that tote bag you got when you made a donation to public radio? Did you know that the IRS cares about the value of that bag? According to the IRS, if something of value is given to a donor in exchange for the donation (a “quid pro quo”), then the donor can only take a tax deduction for the amount of the donation less the value of the item given. But the IRS makes an exception to this requirement if the item is considered a “low cost article”. If the donor only receives a low-cost article (like a tote bag) in exchange for a donation, then the donor can deduct the full value of the donation. What is a “low-cost article” depends upon the amount of the donation and the cost of the article itself. The IRS adjusts these amounts each year for inflation. Read more below or open the article in a new tab.

2023-Low-Cost-Article-Information

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

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

Webcast: Galas & Tournaments & Festivals, Oh My! Part II: Road Races, Golf Tournaments & Other Sporting Activities

Our Fundraising series is exploring the legal aspects of conducting various fundraising activities in the state of Georgia. In this session, our speaker will explain the things nonprofits need to consider when hosting sporting activities such as road races and golf tournaments in Georgia. She will cover topics including risk issues, income and sales tax, and licenses that may be needed.

Speaker: Melinda Simon, Associate General Counsel, Emory University

Click here to view the webcast.

Fundraising Tournaments and Runs

Webcast Slides Fundraising - Runs and Golf Tournaments

Webcast: Galas & Tournaments & Festivals, Oh My! Part 1: Galas and Silent Auctions

Does your nonprofit host auctions or galas as part of its fundraising efforts? Venue, caterer, silent auction items . . CHECK!

What about:

– Registering with your local sheriff to host that raffle?
– If you are serving alcohol, applying for a liquor license?
– Paying and collecting sales taxes on catering, ticket sales and auction items?

In this presentation, we will provide insight and updates to help you identify what you should do (or not do) to help your nonprofit remain in compliance.

Presenter: Mary Benton, Alston & Bird LLP

View the webcast here.

These educational materials are also mentioned in the webcast:
– Webcast: Bottoms Up: Serving Alcohol at Your Nonprofit’s Event
– Article: How to Hold a Legal Raffle in Georgia
– Webcast: Fundraising and Sales Tax – What Every Nonprofit Needs to Know
– Webcast: Thanking Donors- The Legal Way

Webcast: Gift Acceptance Policies

Has anyone ever offered your organization a gift of stock, bonds, mutual funds, CDs, or other investments? Many organizations do not think about a policy for accepting such investments and a procedure for managing them until the offer is made and then urgency takes priority instead of a thoughtful plan. Some nonprofits also receive offers for the donation of real property including homes, empty lots, farms, and even office buildings. Having a policy, plan and process to handle such requests is important to protect the organization. Tune in to learn more about how to establish gift acceptance policies that work for small nonprofit organizations.

View the webcast.

Gift Acceptance Policies

Gift Acceptance Slides

Webcast: Bottoms Up: Serving Alcohol at Your Nonprofit’s Event

Nonprofits rely on special events for a wide variety of reasons: as a fundraising source, to recognize volunteers and as an opportunity to celebrate your mission. These special events usually include serving alcohol, which means, you may even need to apply for a special events alcohol license! In this webcast, we will have an expert in the industry speak about special event alcohol licenses, including:

– In what circumstance would your nonprofit need to apply?
– How do fees and requirements vary depending on the city or county you are hosting your event?
– Once a nonprofit gets a license, how long is it good for?

Speaker: Taylor Harper of TFH Legal

Click here to view.

Liquor License Liability

Slides- Liquor Licenses & Liability

Risks and Rewards of Crowdfunding for Nonprofits

Crowdfunding has become an increasingly popular tool in a nonprofit’s fundraising arsenal, and with good reason. Crowdfunding is essentially a means of asking for online donations to support specific projects and fundraising events. Organizations can pay crowdfunding platforms such as Crowdrise, PayPal Giving Fund, and Kiva, which are fundraising websites specifically geared towards nonprofits, to showcase particular projects and to collect donations on their behalf. Doing so can enable even a small nonprofit to gain national exposure and significantly enhance its funding potential.

With the benefits and popularity surrounding crowdfunding, it is easy to overlook the potential associated legal risks. For every nonprofit currently engaged in or considering engaging in crowdfunding, here are a few of the many factors to consider.

Risks and Rewards of Crowdfunding

Article- Risks and Rewards of Crowdfunding for Nonprofits

Webcast: Government Grants: How to Ensure Your Nonprofit is in Compliance

What nonprofit would not want a grant from a federal or state agency to help them accomplish their mission and to relieve some of the constant fundraising pressure that all nonprofits face? Grants are free money! But they do have strings attached. A children’s hospital misreported information on a federal grant application and had to pay $12.9 million to resolve the charges. Managers of a charter school faced charges and claims for grant fraud. Even Big Brothers Big Sisters of America has gotten stung with multimillion-dollar sanctions. Is your nonprofit poised to stay on the right side of obligations as a grant recipient?

During this webinar, our speaker helps nonprofits understand:
– What are grant recipients’ compliance obligations?
– What are the systems nonprofits need in place to prevent non-compliance?
– How do you “idiot proof” your organization from application prep to close out?
– How training and monitoring can keep you out of prison and bankruptcy?
– What does it mean to be a “Steward of Public Funds”?

Presenter: Carl Gebo, President of Government Contractors Assistance and Resource Line

Please click here to view the webcast.

Slides – Federal Grants
Slides: Federal Grants Compliance Power Point 2018

Webcast: Thanking Donors- The Legal Way

Of course, as a Georgia nonprofit 501(c)(3), you want to thank your donors for their generous donations, but did you know there are federal law requirements about how to acknowledge donations? If it’s not done the correct way, there can be fines for the nonprofit and the donor may not be able to take the tax deduction.

During this webcast, the speaker will:
– Define charitable contributions,
– Discuss the federal requirements for acknowledging donations including large cash donations, donations where items are given to the donor in return, in-kind donations, donated services and donated space, and
– Explain the proper form and format for acknowledgements including what must be disclosed.

Speaker: Robyn Miller, Tax Counsel, Pro Bono Partnership of Atlanta

Thanking Donors The Legal Way

Click here to view the webcast.

Slides- Thanking Donors The Legal Way

When Are Commercial Type Activities a Substantial Nonexempt Purpose for an IRC 501(c)(3) Organization

Are you considering conducting commercial type activities – maybe a thrift store or a coffee shop, or selling goods or services of some kind? The IRS has developed short podcasts on various subjects to educate its employees and has made these podcasts available to the public. This podcast explains how the IRS evaluates commercial type activities when deciding whether to approve tax exemption or revoke tax exemption. It’s short (15 minutes long) and helpful.

Stay Tax Exempt

Webcast: Gambling for Nonprofits in Georgia

Nonprofits often host fundraisers in which activities like raffles and bingo are used to raise funds. They need to be aware of the federal and state regulations governing these activities.

During this webinar, our speaker helps nonprofits understand how federal and Georgia laws impact a nonprofit’s ability to fundraise using gambling, such as raffles or bingo.

Presenter: Jennifer Bumbalough, The American Cancer Society

Click here to view the webcast

Gambling for Nonprofits

Slides: Gambling for Nonprofits in Georgia