Many nonprofits are under the impression that lobbying is forbidden or severely restricted, but that is not entirely the case. The fact is that nonprofits need to be very careful about blindly engaging in lobbying activity, but they may freely engage in lobbying as...
Question: Does a Church need to apply for 501c3? Answer: While it is true that Section 508(c)(1) of the Code relieves Churches from applying for favorable determination letters regarding their exempt status, there is nothing in Section 508(c)(1) which relieves a...
Question? Can I setup my Nonprofit as an LLC? Answer: Yes, but only under very limited circumstances would this be of benefit. In order to understand why, let’s break the one question into its two parts: Can I form a Nonprofit LLC in Texas? The Texas Business...
Question: Can my Nonprofit hold Raffle to Raise Money? The Charitable Raffle Enabling Act, effective January 1, 1990, permits "qualified organizations" to hold up to two raffles per calendar year, with certain specified restrictions. Answer: A raffle is defined as the...
Question: Can my Nonprofit hold a Poker Tournament or Casino Night Fundraiser? Answer: Unlike raffles and bingo, there is NO exception to the gambling law in Texas for nonprofits to hold poker or casino night fundraising events. The gambling law, Chapter 47 of the...
By law, organizations that fail to file annual reports for three consecutive years will see their federal tax exemptions automatically revoked as of the due date of the third required filing. The Pension Protection Act of 2006 mandates that most tax-exempt...
Question. My organization's tax-exempt status was revoked by the IRS. What can I do? Answer: If an organization has had its tax-exempt status automatically revoked and wishes to have that status reinstated, it must file an application for exemption and pay the...
Question: What should we do to maintain our organizations tax exempt status? Answer: Fortunately, it is not common for the IRS to actually revoke a nonprofit’s tax-exempt status. However, even if a nonprofit does not lose its tax-exempt status it may face stiff...
Question: How can our organization avoid the Taxation of Corporate Sponsorship Donations? Answer: One effective way for a nonprofit to generate revenue is to pursue a corporate sponsorship wherein the sponsor makes cash or in kind donations in exchange for public...
Question: My Texas nonprofit corporation filed its IRS Form 1023 and applied to the IRS to become a tax-exempt charitable organization. The current average wait time for the IRS to approve an application for tax-exempt status is well over a year. Can we tell...
Question: If my nonprofit corporation files its IRS Form 1023 today, how long will it take before the IRS issues a letter approving the corporation as a tax-exempt Section 501(c) charitable organization? Answer: According the the IRS’ website page called “Where Is My...
Provide the required information on the principal officers and board of directors. List the following information for the principal officers and board of directors: Names;Mailing addresses;Titles and Positions;Annual compensation Ensure a director, trustee, principal...
Every organization that qualifies for tax exemption as an organization described in section 501(c)(3) is a private foundation unless it falls into one of the categories specifically excluded from the definition of that term (referred to in section 509(a)). In...
To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual. In...
Question: What is a Private Foundation? Answer: Organizations described in IRC Section 501(c)(3) fall into two categories: private foundations and public charities. Under Section 509, all organizations, domestic or foreign, described in Section 501(c)(3) are by...
