Acknowledging Charitable Contributions

What are the rules for acknowledging charitable contributions? Tax exempt, nonprofit charitable organizations that engage in fundraising in Connecticut are subject to IRS regulations concerning substantiation and disclosure requirements of donations. While the onus is on donors to obtain sufficient written acknowledgment of a contribution, there are requirements applicable to nonprofits to protect the donor’s […]

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Building an Effective Nonprofit Board

Are your board members willing to invest their time, talent and financial resources for the long term? Does your board understand its role and responsibilities? Are your board members engaged? Do they attend meetings and serve on a committee?  Are they united for a sustained effort in cultivating donors?   Has your board adopted legally compliant […]

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Types of Tax-Exempt Organizations

What are the various kinds of tax-exempt organizations and how do they differ? The most common types of tax-exempt organizations recognized by the Internal Revenue Code are those which meet charitable, religious, scientific, literary and other exempt status under section 501 (c)(3) of the Code. Other tax-exempt organizations are referred to as having “life cycles,” […]

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Employee Handbooks

An employee handbook is an instrument that is widely used by employers to communicate their expectations and policies to employees. There are many reasons to develop and distribute an employee handbook. These written documents enable employers to clearly outline what is expected from employees and what employees can expect from the employer. In the event of a dispute […]

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What is a Limited Liability Company (LLC)?

The limited liability company (LLC) is a type of business structure that offers business owners both the liability protection of a corporation as well as the tax benefits of a partnership or sole proprietorship. A limited liability company consists of one or more owners (called “members”), who often actively manage the company’s business affairs. LLCs are relatively simple to establish […]

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Eligibility Requirements of 501(c)(3) Charitable Organizations

A 501(c)(3) tax-exempt organization is a type of non-profit that is dedicated to the charitable purposes set forth in section 501(c)(3) of the Internal Revenue Code. This includes organizations whose purposes are charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, or preventing cruelty to children or animals. If all requirements are met, the charity […]

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Which Business Structure is Right for You?

The type of entity that is best for your business depends on many factors. This decision can have a significant impact on the business’s future profitability and growth, its tax liability, and the level of asset protection afforded to its owners. Below is an overview of the most common business structures. Sole Proprietorship The sole proprietorship is the […]

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Basics of Obtaining 501(c)(3) Tax-Exempt Status

We are a charitable organization and want to be classified as a 501(c)(3) tax-exempt organization. Where do we start? You’ve selected the board of directors, drafted the bylaws, and successfully incorporated your organization under your state’s not-for-profit corporation laws. From there, the next – and possibly most daunting – task is submitting the necessary paperwork to the Internal Revenue […]

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Advice for Non-Profits Regarding Interested-Party Compensation

What is the best way to ethically handle a board discussion on compensation for our non-profit’s executive staff? When it comes to a boardroom discussion, few topics are more uncomfortable than those involving compensation packages to executives, directors, and staff members. For one, non-profits often strive to be as fiscally careful as possible, and will […]

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