Posts

Should a Dormant Nonprofit Organization Deactivate the “Donate” Button on its Website?
October 28, 2019

For an inactive nonprofit organization that is not engaged in any formal activities or fundraising efforts, there is no reason to have a functioning “Donate” or “Donate Here” button on its website as it only creates risk (albeit not…

Is There a Time Limit for Distributing Funds Raised for a Specific Cause?
October 23, 2019

Several times each year our 501(c)(3) organization raises funds for a specific cause (or other charity) through a special event or a raffle.  Once the event takes place, how long do we have to submit the funds to the designated charity? There…

Can a Nonprofit Organization Include Paid Staff as Voting Members of the Board of Directors?
September 30, 2019

Virginia law does not prohibit employees from serving on the board of directors of the nonprofit organization for which they work. But while it may be legal, it is relatively unusual for charities to have paid staff on the board on not considered…

Can a Nonprofit Founder Deduct Startup Expenses?
September 06, 2019

Can the organizers of a newly formed 501(c)(3) exempt organization take a tax deduction for personally paying the organization’s expenses during its first year in operation? Yes. A donor may claim a deduction for contributions made “to…

What is the Difference Between a Public Charity and a Private Foundation?
August 01, 2019

One preliminary issue to address when forming a nonprofit organization—and a common source of confusion—is whether the new organization will be a public charity or a private foundation. In my experience, most nonprofit organizers are looking…

Pop Quiz for Nonprofit Board Members
July 18, 2019

While millions of civic-minded, passionate individuals volunteer their valuable time and talent each year to serve on nonprofit boards, the pertinent question not asked often enough is “How engaged is our board of directors?” If you are…

Thinking About Starting a Nonprofit Organization?
July 15, 2019

If you have ever considered starting a nonprofit organization, the process can be intimidating given the complicated terminology, legal, tax, compliance, governance, fundraising, and other issues that need to be addressed throughout the life…

The Importance of Responsible Contract Drafting and Review for the Small Business Owner
June 25, 2019

Business attorneys often hear some version of the following confession from their clients, “Oh I just used a contract template that I found online.” Statements like this evoke mixed emotions because (i) there is no such thing as “one size…

Tax-Exempt vs. Nonprofit in Virginia
June 06, 2019

Most people use the terms “nonprofit” and “tax-exempt” interchangeably. Legally speaking, however, the terms have different meanings. The term “nonprofit” generally refers to provisions of state law that authorize the formation of…

Quorum Requirements in Nonprofit Bylaws
May 24, 2019

Question: Our nonprofit board frequently struggles with questions about quorum requirements in our Bylaws and what is required by law, can you help us understand what the law requires? Answer: The good news is that nonprofit organizations…