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Should Your Organization Elect Under 501(h)?

The "pros" outweigh the "cons" in most cases where a charity engages in significant advocacy.

For organizations that engage in lobbying activity, the 501(h) election can be a valuable protective device. Although there will be accounting issues, the relative certainty of the calculations should allow a charity to plan and engage in significant lobbying activity without fear that it will lose its charitable exemption because it seeks legislative changes.

March 16-April 15, 2011

Lead Stories
To the Point

Is this restraining order dismissal allowed?

One of our directors filed for a personal temporary restraining order against a member of our nonprofit corporation. The case was dismissed because neither party ever appeared in court. Now the director who brought the suit wants our Directors & Officers Insurance to pay his personal legal obligations. Can that be allowed to happen?

April 16-May 15, 2011

Lead Stories
Ready Reference
To the Point

Will this affect our ability to get (c)(3) classification?

Our Orchid Society provides education on orchid culture to our members and other clubs who request our service. We have applied for 501(c)(3) charitable and educational classification. We have an annual orchid show and plant sale as our only fund raising event. Our members sell plants and supplies at this function and provide us with 20% of the sale proceeds. I've been told that this is wrong and it appears that we are organized to benefit the members. Will this affect our ability to get (c)(3) classification?

May 16-June 15, 2011

Lead Stories
To the Point

Are financials required to be made public in a 501(c)(3)?

Our recreational softball league began with an election but since then the board has become secretive. Recently we have heard that they are using League funds for food and alcohol purchases, amended by-laws that we as members have never seen, appointed themselves for three-year terms and will be appointing two persons to fill vacancies. My questions are: 1. Are financials required to be made public in a 501(c)(3)? 2. Can they fix the board positions? 3. Can they appoint directors? 4. Can League funds be used for food and alcohol?

June 16 -July 15, 2011

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To the Point

Is it legal to use 501(c)(3) tax ID for personal social interest?

The president of our 501(c)(3) organization has an interest in a social issue that has no part of our 501(c)(3). He insists that he can collect donations using our tax id number for his own social interest organization/movement. As CEO of our organization, I think that this is an illegal use of our status. He argues that it is legal as long as he gives some of the collected funds to the original 501(c)(3). Who is right?

July 16-August 15, 2011

Lead Stories
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To the Point

Can I stay on salary as PR & advocate?

I am the founder of a 501(c)(3) group home for individuals with autism, founded for my grandson who is autistic, and others like him. I decided to step down as executive director. I never paid myself more than $2,000/mo. I wanted to stay on salary as PR & advocate. The board says I cannot because of the new employment law. I'm Founder, was executive director & my grandson lives there. Is this correct? They now will not let me see financials, minutes or anything even though it is public information. I live on my Social Security & my husband's retirement & don't have enough money to live on.

August 16-31, 2011

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September 1-15, 2011

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Should board comment on annual proposals to amend bylaws

Our 501(c)(3) nonprofit corporation reviews its bylaws annually. Prior to the proposed changes going to the membership, they are reviewed by the board of directors. The board forwards all proposals to the membership with recommendations for or against. A rationale is always provided for the board’s recommendation. Recently a member told me that the board should forward all proposals without any recommendation. Is this true?

September 16-30, 2011

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