Can’t Pay Your Tax Bill? File the Return Anyway. You finished your tax return and the number at the bottom is not good. Maybe you owe $8,000. Maybe it is $40,000. Maybe you are self-employed and had a much better year than expected—but did not make enough estimated payments along the way. Whatever the reason, …
Is Your Youth Sports League Really Tax-Exempt? 7 Mistakes That Put Parent-Run Clubs at Risk It may have started with a few parents collecting checks for uniforms and tournament fees. Now the organization has paid coaches, business sponsors, travel expenses, fundraising events, and thousands—or even hundreds of thousands—of dollars moving through its accounts. Maybe it …
Does Your Fraternal Organization Qualify as a 501(c)(8)? Your organization may have a strong mission. It may have members. Traditions. Local chapters. A long history of helping people. But does that mean it qualifies as a fraternal benefit association? Not automatically. The IRS has specific rules for 501(c)(8) organizations. A group cannot simply call itself …
Does Your Fraternal Organization Qualify as a 501(c)(8)? Read More »
Is Your 501(c)(7) Social Club Really Tax-Exempt? Your club has tax-exempt status. But does that mean you are safe? Not always. A 501(c)(7) social club can be exempt from federal income tax when it is organized for pleasure, recreation, and other nonprofit purposes. Think country clubs, hobby clubs, social clubs, recreational clubs, and similar membership …
Is Your 501(c)(7) Social Club Really Tax-Exempt? Read More »
Is Your Trade Association Really a 501(c)(6)? What Business Groups Need to Know You started a trade association to help your industry.You collect dues. You host meetings. You talk about issues affecting your members. Maybe you advocate for better rules, better standards, or better business conditions. But here is the question: Is your organization really …
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501(c)(4) Organizations: What They Are, and Where People Get It Wrong A lot of people say: “We don’t want a 501(c)(3). We want a 501(c)(4).”They usually mean one thing: They want more flexibility.That’s not wrong. But it’s also where problems start. What a 501(c)(4) Actually Is A 501(c)(4) is a social welfare organization. That typically …
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How Nonprofits Can Work With For-Profit Partners Without Losing Exemption Most nonprofit boards assume they are in “good standing.” They filed their 990. They haven’t heard from the IRS. No one has complained. That does not automatically mean your organization is in good standing in Massachusetts. If you operate in the Commonwealth, you answer to …
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How Nonprofits Can Work With For-Profit Partners Without Losing Exemption Many nonprofit leaders believe one thing: “If we’re good with the IRS, we’re fine.” In Massachusetts, that assumption can be dangerous.It’s not just the IRS that regulates nonprofits. The Commonwealth does too — and the state has real enforcement power. The IRS Is Only Half …
The Massachusetts Attorney General vs. the IRS: Who Really Regulates Nonprofits? Read More »
How Nonprofits Can Work With For-Profit Partners Without Losing Exemption You want to partner with a business. Sponsorship money. A co-branded program. Maybe even a joint venture.And then someone asks the question that should stop you in your tracks: “Will this mess up our 501(c)(3) status?”It can—if the deal is sloppy. But nonprofits can work …
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Charity in Name Only? How the IRS Looks at “Private Benefit” and “Inurement” When the IRS looks at your nonprofit, it’s not just asking:“Are you doing good things?”It’s also asking:“Is anyone on the inside getting a deal they shouldn’t?”That’s where private benefit, inurement, self-dealing, and excessive compensation come in. If you’re a founder, board member, …
Charity in Name Only? How the IRS Looks at “Private Benefit” and “Inurement” Read More »
