May a Section 501(c)(3) nonprofit engage in business operations to generate revenue? Such organizations often brainstorm creative solutions to accomplish their charitable purposes and ensure revenue is sufficient to support their charitable endeavors, including business-related ideas. These activities may blur the lines between a nonprofit organization engaging in permissible commercial activity, on the one hand, and a de facto for-profit business with charitable overtones. How does a Section 501(c)(3) stay tax-exempt within applicable IRS constraints, and yet carry on a profit-generating business? The “Newman’s Own” exception provides a fascinating example of charity mixed with business, within the broader context of other more common and far less complex nonprofit operational models.
With summer in the air many nonprofits enter in the heart of the season for their charitable, educational, and religious programming. As mission trips, camp excursions, hikes, and canoe trips fill up the calendar, many nonprofits pull out their tried and true “Waiver and Consent” forms and “Parental Permission” forms. Are these forms an effective risk management tool?
The General Data Protection Regulation (GDPR) went into effect on May 25, 2018, and it has the potential to significantly impact the way vast numbers of business entities – nonprofits included – handle data. With the GDPR live, what steps, if any, should nonprofits take?