Article Archives >> To the Point

Is it illegal for a group to claim it is a nonprofit when it has no nonprofit status?

What do you mean when you say nonprofit status?  There are a lot of organizations that are nonprofit under state law, which means that can’t pay dividends to owners or members.  When we talk about nonprofit status, we tend to mean tax-exempt and charitable. But there are a few nonprofits that are not tax-exempt and lots of tax-exempt nonprofits that are not charities.  (See Ready Reference Page:  “What Do We Mean When We Say Nonprofit?”)

A statement that an organization is a nonprofit could be accurate even if it is not a charity.  It would generally be illegal under state charitable solicitation registration laws or other state laws for an organization to represent or imply that it is a charity to solicit charitable contributions when it is not recognized as a charity. An organization that claimed it was nonprofit and is not nonprofit under state law would open itself to claims of misrepresentation and fraud if a third party detrimentally relied on that representation.

April 8, 2009

Article Archives >> To the Point

Planned Giving Primer

Pre-recorded Webinar -
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Planned giving sounds complicated, with its CRUTs and CRATsCLUTs and CLATS, and CGAs.  It can be incredibly complicated, but it needn’t be. Keeping it simple may be the best way to start a planned giving program for a charity that hasn’t already put one in place.

This webinar offered a review of major planned giving instruments and a discussion of ones that make the most sense to emphasize in starting a planned giving program.  It discussed the advantages of integrating planned giving into an existing development program, targeting the best prospects, getting buy-in from the board that is likely to generate results, and setting a structure to make it all happen.


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