The Relationship Test In our last blog post we discussed Supporting Organizations and the first three tests for how to determine if a 501(c)(3) public charity is a supporting organization. In the second part of this two part series, we’ll discuss the fourth and final test of supporting organizations: the Relationship Test. Depending on the …
Throughout the legal community there is no shortage of opinions people have about working for a small firm versus a larger firm. Entire law review articles have been devoted to the pros and cons of each model. Whatever side of the spectrum you find yourself on, there’s simply no denying one fact: small firms are …
A Brief Review of Client Development for Solo and Small Firm Lawyers Read More »
Most 501(c)(3) public charities are characterized as such because they receive most of their funding from donations from the general public, government grants, or from other 501(c)(3) public charities. However, some public charities are characterized as such because they support other public charities. These organizations are appropriately called supporting organizations. Unlike other public charities who …
“The opposite of poverty is not wealth. It is justice.” –Bryan Stevenson It’s been a long time since a book has broken me and left me humbled to the point of tears, but attorney Bryan Stevenson’s first-hand critical look at the justice system in the South and beyond did just that. Just Mercy: A Story …
Just Mercy: A Story of Justice and Redemption by Bryan Stevenson A Review Read More »
Is your company women- or minority-owned? If so, is your company certified with the Office of Minority and Women’s Business Enterprises? If you have never heard of that office or don’t know what it does, this post is here to help! The OMWBE is a little-known office that focuses on empowering and incentivizing businesses …
The OMWBE: The Office of Minority and Women’s Business Enterprises Read More »
For the final blog post in this series, we will run through a case study of a hypothetical nonprofit to see how each one of these strategies can be used and how each can interact with the other. The Doing Good Foundation is a Washington nonprofit 501(c)(3) organization. The Doing Good Foundation’s mission is …
Besides conducting related business activity and earning income through passive strategies, nonprofits can simply earn income through unrelated business activity. Unrelated business activity is exactly what it sounds like: activity a nonprofit conducts that has nothing to do with its charitable purposes. More accurately unrelated business income is income generated from activity that is: A …
The advent of COVID-19 has had long ranging effects on all aspects of life, but as the light of the very long tunnel comes into sight, all of us are beginning to wonder what life after COVID will be like. A prime example of organizations needing to adapt in this environment is the way in …
Worship Post-COVID: Application of the Religious Services Exemption Read More »
The next option for earning income that every nonprofit should know about is income exempt from unrelated business income tax. While there are quite a few exceptions, the key exception that we will talk about in this post is passive income: income derived from dividends, rental income, royalties, or capital gains. Generally, all income …
Contrary to popular belief, a nonprofit can (and maybe even should) make a profit from its business activities. Depending on what the activity is, a nonprofit 501(c)(3) organization may not have to pay taxes on any profit it makes, such as activities that are related to its charitable purposes. We define related business activity …