Who Benefits?

Whether starting a new nonprofit or running a well developed one, leaders nonprofits should carefully evaluate their activities to ensure that they are, in fact, serving appropriate beneficiaries within the meaning of applicable exemption laws.  Consider the following cautionary tale involving a new section 501(c)(4) social welfare organization, which provides lessons for other tax-exempt organization as well.

IRS Releases Streamlined Reinstatement Procedures for Auto-Revocations

The exempt organization community received welcome news today from the IRS, signaling what hopefully will be the start to a good year! Revenue Procedure 2014-11 issued on January 2, 2014, outlines four new streamlined procedures for reinstating the tax-exempt status of organizations that have had their status automatically revoked for failure to file IRS Form 990s.    

Background

Charitable Receipting Double Check

As 2013 draws to a close, public charities await year-end contributions, and Packers fans await the potential return of Aaron Rodgers, a charitable receipting “Double Check” is likewise in good order.  Donors and donees must remember that a donation alone is not enough for a donor to claim a federal income tax deduction.  A proper written acknowledgement from the donee to the donor substantiating the gift must be maintained. Earlier this year, a court in Texas denied a donor a charitable deduction because the written acknowledgment provided by the organization did not include the requisite