Before your charity accepts a car donation, make sure the board understands the scope of the project. An improperly run car donation program can affect a charity’s tax-exempt status. IRS oversight of car donation programs often focuses on what a charity does with the donated cars. For example, if a charity uses donated cars to …
Posts Tagged: non-profits
Advocacy Tips for Nonprofits
As we told you in a prior post, for many nonprofits, advocacy is an important tool for achieving exempt purposes. In a recent article published by The Chronicle of Philanthropy, successful advocates offer tips to help charities defend their interests. The tips include thanking supportive politicians, developing an agenda, and taking a united position. You …
Are Pledges Binding?
We are frequently asked whether pledges are binding. In California, for the most part the answer is no. In some other states, pledges can be binding as a matter of law. A pledge is a promise made by a donor to make a charitable contribution in the future. Even when in writing, pledges are typically …
IRS to Watch US Nonprofits With Overseas Activity
Yesterday we blogged about the release of the IRS Exempt Organizations Unit’s 2012 Work Plan. Specifically, we posted on the plan’s focus on organization’s with unrelated business income. Today we explore a second focus – overseas activity by U.S. nonprofits. In the plan, the IRS announced that it will be watching nonprofits operating overseas. The …
IRS Targets Nonprofits with Unrelated Business Income
Nonprofits need to be aware that the IRS is targeting organizations with unrelated business income. Concerned about unrelated business activity, the IRS will be watching closely for organizations that report unrelated business income on the Form 990 but then do not file a Form 990-T. Form 990-T is the tax return required from exempt organizations …
990-N Filers Face Additional Requirements
Listen up 990-N filers. The IRS recently advised that, generally, if there are changes to a nonprofit’s name or changes to its structure or operations, the organization must notify the IRS in writing of such changes. In other words, filing the 990-N may not be enough. This advice comes in response to a request for …