The materials in our Resources section are for informational purposes only, without any representation that they are accurate or complete. These publications do not constitute legal advice and do not create an attorney-client relationship between the reader and any other person, nor are they an offer to create such a relationship. These publications are current as of the date written, but laws change over time and vary from state to state. As a result, the information presented here may not be timely and/or appropriate for any state not specifically addressed in a publication. Consult an attorney if you have questions regarding the content of any publication.

Corporate Governance

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Posted on September 4, 2020

The US Department of Labor (“DOL”) has provided further guidance on FFCRA childcare leave available to caregivers. Given that “back to school” is taking many forms this school year (virtual, in-person, blended and hybrid), the DOL has clarified which employee situations would be covered by FFCRA childcare leave. Please see this article for details on the DOL’s guidance.

Posted on September 1, 2020

Nonprofits (or NGOs) based outside of the U.S. are usually not eligible to receive tax-exempt status here. These NGOs may choose to form a brand new U.S.-based §501(c)(3) or to partner with an existing U.S.-based §501(c)(3) with a similar mission in order to be able to obtain tax-deductible donations from U.S. taxpayers. But U.S.-based nonprofits risk losing their tax-exempt status if they accept donations on behalf of organizations based in other countries without meeting certain IRS requirements. This article outlines the three key factors the IRS uses to determine whether or not a US §501(c)(3) can accept donations on behalf of organizations based outside the U.S.

Posted on April 16, 2020

Due to COVID-19, the Department of Treasury and Internal Revenue Service recently provided tax-exempt organizations filing relief for returns and tax payment obligations due between April 1 and July 14, 2020. Find more details here.

Posted on March 19, 2020

The Families First Coronavirus Response Act (the “Act”) was signed into law on March 18, 2020 and goes into effect on April 2, 2020. This law is a financial aid package intended to address the Coronavirus outbreak. It includes several employment-related provisions that affect will employers with fewer than 500 employees, including nonprofits. Employers are required to provide family leave for public health emergencies and paid sick leave. Employers have 15 days to determine how they will comply with the Act and start implementing it. They will also need to provide notice to employees of these new requirements through postings and policies. While the Act provides the Department of Labor with the ability to issue regulations to exempt certain employers with fewer than 50 employees from the family leave requirements, please be aware that no such regulations have, as yet, been issued. See this new Legal Alert for more information.

Posted on January 30, 2020

This article presents general guidelines for Georgia nonprofit organizations as of the date written and should not be construed as legal advice. Always consult an attorney to address your particular situation.

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.

In 2020, if a donor makes a donation of $56 or more and only receives in return a token item with the donee’s logo that costs not more than $11.20 (such as a mug or a pen), then the item is considered a low-cost article and the donor can deduct the full value of his or her donation.

Further, in 2020, if the donor receives something in return for a donation and the cost of that item is not more than 2% of the donation or $112 (whichever is less), then the donor can deduct the full value of his or her donation.

If your nonprofit is providing donors with an item in return for a donation, you will need to determine whether such item qualifies as a low-cost article. If the item qualifies, then it’s a good idea to include the following in your fundraising materials: “Under IRS guidelines, the estimated value of the benefits received is not substantial; therefore, the full amount of your payment may be a deductible contribution.”

If the item does not qualify as a low-cost item then you will need to treat it as a quid pro quo donation and include the additional language in your acknowledgment. See our article, Guide to Sending Acknowledgements for Donations, for guidance on acknowledging quid pro quo donations. In addition, if the item given in return for a donation does not qualify as a low-cost item then the transaction may be considered to be a purchase rather than a donation. For example, if someone pays $20 and receives a t-shirt in return, it looks like the person bought a shirt rather than made a donation. If a nonprofit regularly engages in such transactions, then it may have to pay unrelated business tax on the income from such purchases. For more information, see UBIT: Four Letters Your Nonprofit Needs to Know.

Posted on January 17, 2020

Have you ever thought about combining with an organization that does similar work or serves the same clients? There are many factors to consider when deciding whether to merge two nonprofit 501(c)(3)s. During this webcast we will explore best practices and lessons learned. Nonprofit mergers are complex and if not done properly can result in a lot of wasted energy, resources and goodwill. We will also discuss the legal process of a merger and when to get a lawyer involved.

Presenters: Erik Speakman, founder, Speakman Management Consulting and Robyn Miller, Senior Corporate/Tax Counsel, Pro Bono Partnership of Atlanta

View the webcast here

Posted on September 20, 2019

PBPA Executive Director, Rachel Epps Spears discusses the good habits that make a successful board member. Learn to be an effective partner to the organization you care so much about and help avoid the pitfalls of financial mismanagement. This knowledge is more important than ever, especially considering recent closures of several well-established nonprofits in Atlanta.

View the webcast here.

Posted on September 5, 2019

If your organization’s plans for the new year include a name change, check out our article that presents steps for changing the legal name of a 501(c)(3) tax-exempt, nonprofit organization in Georgia.

Posted on July 29, 2019

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 in over the next couple of years.

Posted on May 21, 2018

Nonprofits hold board meetings quarterly if not monthly. These meetings are required by the organization’s bylaws and at least yearly by law, but it’s hard to find training for Executive Directors, CEOs and Board Chairs regarding how to prepare for and run such meetings. More importantly, how does one make such meetings effective?

During this webcast, our speaker addresses the following:

  • How to prepare for board meetings
  • How to run board meetings
  • Documents associated with such meetings
  • How to keep board meetings focused and on track, and
  • Key follow up steps after a board meeting
  • Presenter: Robin Sangston, V.P. Chief Compliance and Privacy Officer, COX Communications

    View the webcast here.