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 trade or business (the IRS defines any activity designed to raise income from the sale of goods or performance of services as a trade or business); Regularly carried on (isolated sales or even sporadic activity may not be considered “regularly carried on”); and Not......
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501c3, 990, Articles, IRS, tax-exempt |
September 29, 2014
Tax-exempt organizations – Be sure to file your 990 informational return!
Despite the IRS’s best efforts to inform the public, many tax-exempt organizations fail to file their annual informational return (examples here). While failing to file for a single year may...
501c3, Articles, charitable solicitation, IRS, nonprofit, tax-exempt |
August 15, 2014
Introducing the New 1023-EZ!
Effective July 1, 2014, the IRS implemented a new, streamlined application process for smaller organizations seeking tax-exempt status as under IRC section 501(c)(3) . Replacing the old, longer Form 1023,...
501c3, Articles, Finance, Good Business, Mission, nonprofit, Social Enterprise, Social Entrepreneur, social entrepreneurship |
October 18, 2013
Why Business Can be Good at Solving Social Problems
Business is a tool, its how you use that tool that matters. Michael Porter, the Harvard Business School Professor in the Ted Talk video below, argues that business can be the...
501c3, Articles, charitable solicitation, Crowdfunding, Crowdfunding Act, L3C, nonprofit, Social Enterprise, Social Entrepreneur, social entrepreneurship, tax-exempt |
April 19, 2013
"The Way We Think About Charity is Dead Wrong" by Dan Pallotta
Many people have a misconception about fundraising costs and charitable giving. Too many donors ask to see the numbers on a charity’s overhead and how much of their donated dollar...
501c3, Articles, charitable solicitation, nonprofit, tax-exempt, Unified Registration Statement |
April 10, 2013
Online Charitable Solicitations: 4 Tips for Using the "Donate Here" Button
Your shiny new website is up and running. And, like most tax-exempt nonprofit organizations, your website prominently displays a “donate here” button. What better way to solicit charitable donations from...