We regularly feature answers to questions from readers in our “To the Point” column. The full list can be viewed here. Here are some of the questions recently received from readers.

Who should get copies of board minutes?
A Board Member who has resigned has asked to continue to receive Board minutes. This person may rejoin our Board again in the future. We are a Private Foundation. Our Board Minutes often have sensitive and confidential information. Should we provide the minutes to this person?

Ordinarily a private foundation's Board minutes are private matters for the Board and not subject to public view. I am not aware of any legal reason why you would not be permitted to share the minutes with whomever you wish, but you will want to consider carefully whether you want to share sensitive and confidential information. You may want to provide minutes with sensitive and confidential information removed, although that may alienate the person. You may just want to say the complete minutes are for the Board only, and provide summaries of certain information that might help keep the person interested. If the person returns to the Board, he/she will have the right to review the minutes at that time.

Is 501(c)(3) status permanent?
I work for a non-profit education foundation that awards grants to synagogues (primarily) and some religious schools for family education programs. Do the grantees have to renew their 501(c)(3) certification or is it a one time thing?

Organizations which receive a recognition of charitable exemption do not now have to renew their registration. (Under proposals floated by the Senate Finance Committee, charities might have to renew every five years. (See Ready Reference Page No. 74, July 1-15, 2004.) Charities which get an advance ruling that they are classified as public charities, rather than private foundations, must get a new letter confirming that they qualify for public charity status after the first several years. Churches, including synagogues and certain other religious organizations, are not required to obtain a recognition of exemption and can still qualify as 501(c)(3).

Are members entitled to see address lists?
Under New Jersey Law, are members of a nonprofit organization entitled to a listing of its members with names, addresses, phone numbers and email information?

Under the New Jersey nonprofit corporation law, like most state nonprofit laws, a nonprofit corporation must allow a member to inspect and copy membership records containing "the names and addresses" of all members so long as the review is not for an improper purpose. I have not researched to see if there is any case which specifically determines whether e-mail addresses and phone numbers are included in the concept of "address." But since the purpose of the rule is in part to allow members to communicate with each other on membership issues, recognition of modern means of communication would seem to require the release of phone numbers and e-mail addresses where available.

Can our (c)(3) contribute part of our dues to our foundation?
My organization is creating a separate 501(c)(3) foundation. Bylaws of the foundation state there are no dues. The organization would like to donate part of their yearly dues to the foundation. Is this appropriate?

You do not indicate the tax status of your organization, or of the "foundation." Assuming that your organization is not a private foundation, there is no tax reason why it could not contribute to the new foundation. If it would be a very large contribution in comparison with other gifts received by the "foundation," however, it could cause the new entity to be classified as a private foundation instead of as a public charity. (See Ready Reference Pages 26 and 27 on Calculating Public Support), If your organization is a membership organization that charges its members dues, it may be a better result for the new foundation if your organization offers its members the opportunity to contribute directly to the new foundation. Such direct contributions will ordinarily constitute public support and help classify the new foundation as a public charity, rather than a private foundation.

Can a charity regain public charity status after losing it?
Our organization temporarily lost the status of the public charity with the IRS, because we did not fill out form 8374 in time. Now the form is at the IRS, but in the meantime we need to know if we can apply for the grants and accept donations from our supporters?

If you have met the public support test (See Ready Reference Pages No. 26 and 27, Sept. and Oct. 1999) through your first five years, the IRS may recognize your continuation of that status even if you file the Form 8374 information after the date required. In the interim, you are still classified as a charity. The calculation merely determines whether you are a public charity or a private foundation. It does not go to your exempt status.

You may accept donations which continue to be deductible, although perhaps subject to more stringent limitations if you are not a public charity. You can accept grants from private foundations, but they will probably not make a grant until you have a new letter confirming your public charity status.

Can a 501(c)(3) give its assets to a business?
I worked for a non-profit with the mission of restoring a theatre, the current board has decided they are tired and wish to possibly dissolve the corporation and abandon the project. There are over $2.5 million in private ad public funds invested in this project. Also the property is privately owned with a 95 year lease with the nonprofit. If the nonprofit should disband what happens to those funds that were invested? Can the capital improvements be turned over to a for profit corporation? Thanks

Assuming that the nonprofit is recognized as a charitable organization, if it dissolves, its remaining net assets must be distributed for charitable purposes, usually to another charitable organization or a governmental entity. They cannot be given outright to a for-profit organization. The assets might be sold for fair value, but the proceeds would have to be used for charitable purposes, as has been the case in so many "conversion foundations" resulting from the sale of charitable hospitals to for-profit businesses. (See Ready Reference Page No. 55, April 2002.) The proceeds might be used to set up a theater fund at the local community foundation. The state Attorney General usually has an interest in that type of situation.

With as much public and private investment as you cite, it would be wise to talk with the most significant investors and other stakeholders before making any final decisions. There might be another group willing to take over the project.

Have a question you would like to submit? Send it along.