Pro Bono Partnership of Atlanta
501(c)(3)s are prohibited from engaging in political activity, but what about the leaders of the organization? What happens when a board member runs for political office? Or a nonprofit ED is invited to speak at a political rally for a personal friend? Individuals running a nonprofit have their own personal views and political activity, but …
Nonprofit organizations often collaborate with other nonprofits in order to maximize their impact. If your 501(c)(3) nonprofit works in partnership with other nonprofits, you may end up working alongside a 501(c)(4) organization. Whether your nonprofit works with a (c)(4) as part of an established coalition or on an ad hoc basis, it is important to …
“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 …
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.
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”), …
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 …
As a general rule, a donation to a §501(c)(3) nonprofit charitable organization may be tax-deductible, while a gift to an individual is not. Donors and §501(c)(3) nonprofit organizations cannot take advantage of this rule by passing payments from donors, through the §501(c)(3) nonprofit organization to specific individuals. An organization which participates in this type of …
A candidate forum is an event where candidates running for elected office are invited to discuss their views and positions. Hosting a candidate forum can provide §501(c)(3) organizations with a meaningful and informative way to engage with voters and political candidates. As with all election-related activity, organizations must remain unbiased and nonpartisan. This article is …
The United States political system relies on the involvement and participation of its citizens in the election process. Historically, many groups have faced barriers to full participation in this system. §501(c)(3) organizations often wish to host and promote voter registration drives to increase voter participation in the communities and populations that they serve. It is …
The U.S. political system relies on the involvement and participation of its citizens in the election process. Certain groups—such as the elderly, disabled, and poor who may lack transportation face particular challenges to participating in this process. Get-Out-the-Vote (“GOTV”) initiatives aim to increase voter participation by reminding voters of the date and location of their …
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 …
501(c)(3)s are prohibited from engaging in political activity. Doing so can result in loss of tax-exemption. As the 2020 election year gets underway, it is important to understand what constitutes political activity and what doesn’t. View the Webcast Political Campaign Activities and Electioneering
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 …
The Georgia Department of Revenue issued two notices on March 1, 2019 updating its previous policy bulletins regarding sales tax exemptions involving certain 501(c)(3) organizations. These notices update Policy Bulletins SUT-2017-04 (PDF) and SUT-2017-02 (PDF).
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 …
Attracting and retaining the right talent to provide leadership can have a significant impact on how dynamically a nonprofit organization is able to meet the needs of its community. While there are many methods for providing benefits to executives, one primary focus for attracting talent is designing attractive compensation packages. However, compensation for employees of …
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 …
There were many proposals in the House and Senate tax reform bills that could have affected small §501(c)(3) nonprofit clients, and now that the dust has cleared and the bill has become law, here are the main changes that could affect Pro Bono Partnership of Atlanta clients. Tax Cuts and Jobs Acts 2017
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 …
When you applied for 501(c)(3) status for your organization, you had to tell the IRS what charitable services you were going to provide, whom you would serve and whether you planned to charge fees (which had to be reasonable). The IRS granted 501(c)(3) status to your organization based on that information. Now in the age …