Immunity or Not? Charitable Tort Liability Limits in Modern Times

When may a nonprofit charity be held liable for personal injuries to others caused by its agents?  In legal parlance, this is known as “tort” liability – i.e., a civil wrong arising from negligence or intentional wrongdoing of an organization or its agents.  A charity’s “agents” may be its employees, directors, officers, and even other volunteers – that is, a person acting under the organization’s authority. Such potential tort liability is why nonprofits adopt safety standards and carry liability insurance, as they ought

Giving Thanks for Charitable Tax Exemption

Have you ever wondered why charities enjoy special tax exemption privileges?  Or on a deeper level, how the word “charity” came to be defined by the IRS, for Section 501(c)(3) purposes?  This article provides a short historical primer on the evolution of the term “charity,” special aspects for exempt religious organizations, and related tax theories in brief.

Helping Others Grow: The Nuts and Bolts of Fiscal Sponsorships

Has your nonprofit ever been involved with getting a new nonprofit activity launched through receiving funds for a specific project, allowing such funds to be spent for the project, and perhaps even seeing the project blossom into its own Section 501(c)(3) organization?   These arrangements are commonly known as “fiscal sponsorships.”  Fiscal sponsorships may take a variety of forms, but generally they involve innovation, some degree of control and supervision, and an accompanying agreement to address relationship details.  Here’s what responsible nonprofit leaders need to know about fiscal sponsorships, if their organization will serve as a fiscal sponsor or if they are the beneficiary recipients of such arrangements.