By Gabrielle Lessard, Esq. The IRS has published Notice 2011-43, which provides transitional relief for certain small organizations that lost their tax-exempt status because they failed to file an annual electronic notice for three consecutive tax years beginning in 2007.  Qualifying organizations will be able to file for reinstatement of their tax-exempt status, retroactive to the [...]

The Nonprofit & Unincorporated Organizations Committee (the “Committee”) of the Business Law Section of the State Bar of California stated in a recent letter that it supports the Corporate Flexibility Act of 2011 (SB 201) as long as it is amended to include reference to religious purposes among the special purposes permitted for flexible purpose corporations. The [...]

In the past, California nonprofits with $25,000 or less in gross receipts did not have to file any California tax return. For tax years beginning on or after January 1, 2010, California tax-exempt organizations with gross receipts normally equal to or less than $25,000 (except churches) are now required to electronically file FTB 199N, California [...]

For the 2010 tax year, nonprofits need to comply with the following: 1.     If your organization’s gross receipts are normally $50,000 or less, you can file a Form 990-N – a simple filing (this threshold has been increased from $25,000 – thank you IRS!) 2.     If your organization’s gross receipts are greater than $50,000 but [...]

By Gabrielle Lessard, Esq. The deadline looms.  Small nonprofit organizations that failed to file the 990-N or 990-EZ for 2007, 2008 and 2009 will lose their tax-exempt status if they fail to file by October 15th.  (See earlier post IRS Announces One-Time Relief for Non-filing Organizations.) The IRS has made two types of relief available [...]

By Christen Lee, Esq. I. State statutes governing contests in general State laws regulating contests are found in Bus. & Prof. Code § 17539 et seq.  Section 17539.3 grants an exemption to some tax-exempt nonprofits. However, it is recommended that a nonprofit use these rules as a guideline when designing and publicizing a contest to [...]

By Gabrielle Lessard, Esq. About a quarter of the non-profit sector just got another chance.   The IRS is providing one-time relief that will allow small exempt organizations to come back into compliance and retain their tax-exempt status even though they failed to make required annual filings for three consecutive years.   This one-time relief benefits Form [...]

By Christen Lee, Esq. Although raffles can be a great fundraising opportunity for some nonprofits, most states consider raffles to be a type of illegal gambling. Many states, including California, carve out an exception for nonprofits. The following is a brief summary of the California exception. Charitable Raffles in California California Penal Code section 320.5 [...]

Guest Post by Gabrielle Lessard, Esq. The recently enacted health insurance reform legislation includes a tax credit that helps many small businesses provide coverage for their employees.  Many tax-exempt non-profit organizations can also receive the health care tax credit, although at a reduced level. To qualify, small businesses and exempt organizations must: Have fewer than  [...]

By Cecily Jackson and Jenny Kassan In a recent Technical Advice Memorandum (TAM), the IRS determined that a major source of revenue for a 501(c)(6) trade association was unrelated business income and therefore taxable. The trade association’s purpose was to promote a particular sport within a region.  Individuals can only play the sport at sports [...]