Help is on the Way - How Nonprofits Can Aid Disaster Relief Efforts While Maintaining Exempt Status Within Applicable IRS Requirements

What key legal compliance considerations apply for nonprofits participating in disaster relief? Nonprofits need to stay true to their mission overall, avoid improper private benefit, remain mindful of time-related guidelines, report aid properly, and consider strategic initiatives like partnering with others or starting a new nonprofit to serve others most effectively. 

Social Club Q & A: Section 501(c)(7) Tax-Exempt Organizations

Social clubs have long served as a defining characteristic of American society. While the nature of the hobbies, recreational interests, and other ties that inspire people to bond together continues to change significantly, the social club itself remains.  For people wishing to join with others and carry out shared interests in an organized way, the group should understand the tax benefits afforded social clubs.  Specifically, Section 501(c)(7) of the Internal Revenue Code provides an exemption from federal income tax if certain requirements are met.

Do Something (Right)! How to Pass the Section 501(c)(3) Operational Test

Sometimes doing nothing is better than doing something, like not stepping on a landmine. But usually taking some level of action in the right direction is far more preferable, especially when the IRS examines a nonprofit organization’s activities for whether it has been operated as legally required.  Both operating for improper purposes and not operating at all may be fatal to a nonprofit’s Section 501(c)(3) qualification.