If your nonprofit provides donors with an item in return for a donation, you will need to determine whether such item qualifies as a “low-cost article”. That question impacts how much the donor can deduct for his or her donation and what language you need to include on the acknowledgment of the donation.
In order to protect the public from fraud, most states have enacted laws that require organizations to register with the state before they solicit donations from individuals in that state. The goal is for the public to be able to trust that their donations are going to a legitimate nonprofit organization that will use the money for charitable purposes.
This article explains generally when an organization must register in a state, how to complete the registration process, and what an organization should do when soliciting over the internet. Because each state has its own registration requirements, nonprofit organizations should seek advice from competent attorneys to advise them on their particular situation.
If you raise money from the general public in Georgia, you may need to make a special filing with the Secretary of State’s office. Here’s a quick review of what you’re required to file, and where.
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.
Here’s a basic guide to sending acknowledgements. When are you required to acknowledge a donation? When is it just the polite thing to do? You’ll see sample letters for quid pro quo, cash, and non-monetary donations, as well as volunteer services.
Learn about the IRS and state regulations for nonprofits when using or selling donated vehicles.
Nonprofits often team up with for-profit companies to conduct fundraising activities, with part of the proceeds from the sale of the for-profit’s product or service (such as a book or t-shirt) benefiting the nonprofit. What steps are the parties required to take when entering into these types of “commercial co-venture” or “cause marketing promotion” arrangements? It may surprise you, but many states, including Georgia, have laws about these promotions.
During this 30-minute webcast, our speaker helps nonprofits understand:
* What is required in Georgia for these arrangements?
* What does your agreement with the for-profit need to include?
* How do you protect your intellectual property in connection with these promotions?
* What disclosures do you need to include in your promotional materials to the public?
Presenter: Nicole Pierce, American Cancer Society
Small nonprofits raising money often accept credit, debit and pre-paid card (also known as payment card) payments online and in person. Nonprofits take these payments at silent auctions and other events, and almost all have DONATE NOW buttons on their websites. The way in which nonprofits accept and process these transactions can expose the nonprofits to potential liability. While trying to limit this exposure, nonprofits can’t forget about the charitable solicitation laws that apply to them.
During this one-hour webcast, our speakers will:
- Provide a general overview of the risks and liabilities of accepting credit, debit and pre-paid card payments;
- Describe the compliance requirements for accepting such payments;
- Discuss the differences between accepting payments directly versus using an online payment processor;
- Describe how a nonprofit can limit its exposure; and
- Provide an overview of the charitable solicitation issues in accepting online donations
Presenters: Sean Christy, Sutherland
Robyn Miller, Pro Bono Partnership of Atlanta
Please be advised that we experienced technical difficulties with video and sound during this webcast.
How does your organization deal with the value of benefits, goods or services given to a donor in exchange for a donation? This publication will teach you how to deal with this and other tricky issues involving written acknowledgements and disclosures.
The IRS now asks for more information in the revised IRS Form 990 regarding in-kind donations like clothing, cars and boats. This alert covers those reporting requirements, and the acknowledgement changes that could affect your donors.
Please note that in addition to the legal disclaimer above, this article contains information that is based, in whole or in part, on the laws of the District of Columbia. As a result, the information may not be appropriate for organizations operating outside the District of Columbia.