The following outline is lifted from Brian's nonprofit organization lecture, copyright 2006, Brian Ewing, please don't use without permission
- All nonprofits are accountable to public
- IRS Forms are public
- Group must make copies available if requested
- LC's must also make local financial reports available on request
- Can post on web, and refer people to the website
- There can be penalties if you refuse
- Certain information can be withheld, like personal information about major donors
- Certain donors get receipts too, see Tax Info
- CANNOT get directly involved in political campaigns ("electioneering")
- Can have candidates in for a debate, as long as all candidates are invited
- Can do some lobbying: contacting officials about legislation, influencing legislation, IF legislation is related to your purpose. Ask the Project legal advisor before doing these.
- Good information sources: IRS Publication 1828, also visit http://www.irs.gov/charities/topic/index.html and click "Tax-Exempt Organizations and Political Campaign Intervention" and then click "Political and Lobbying Activities" for good examples
- Defined: a trade or business, regularly carried on, not substantially related to the organization’s exempt purposes (aside from the need for funds derived from the activity)
- "Funds will be used for our purpose" is not enough
- Big exception: "Trade or business" run by volunteers
- Not barred from engaging in such activities, just have to pay tax on them, ask the Project legal advisor before doing these.
- Gaming includes raffles, bingo, silent auctions, etc.
- Federal IRS Implications: Gaming is almost always Unrelated Business Income, but we can use the volunteer exception. You do not have to clear your raffle with the Project legal advisor, but beware of state law (see below)
- State Implications: States have various laws about gambling, check state websites (Cal: http://ag.ca.gov/charities/raffles.htm
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