An officer of a nonprofit uses his personal credit card to pay the organization’s bills, and then submits a voucher to be reimbursed so he can earn a 2% credit for goods purchased and keep it for his personal use. Should the officer be doing this on a regular basis?
If our 501(c)(3) nonprofit has a raffle and the prize is worth more than $600, do we have to advise winner and tell the IRS of the winnings? If we offered the same items through an auction format, and the value of each item was less, would there be an obligation to advise the highest bidder of any tax burden. We are currently raffling sports tickets that have a value of either just under or just over $600.
You can discuss your personal nonprofit legal questions directly with editor Don Kramer. We can schedule a phone call at a mutually agreeable time, usually within two business days of your request.
You can ask about stories in our recent issues, one of our recent questions, or a particular question of nonprofit law facing your organization. Feel free to gather your people around your conference phone if you want others to hear the answers.
Our 501(c)(3) animal shelter has a patron who wants to donate a piece of art to us. It is an original oil painting of the first pit bull we ever saved. The donor bought it for $3500 (he has the receipt). He is down-sizing because his wife, who had pressured him to purchase it, has died. He wants $3,500, which we, of course, cannot afford, but is willing to gift it to us. He says he needs something from us showing he can deduct it on his taxes. We could use it for our annual fundraising auction. Can you advise me?