What Does A Tax Accountant Do During Tax Off-Season?
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Can Our Nonprofit Support a Candidate?
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Advertising vs. Sponsorships
Revenue from advertising the goods and services of another organization is generally unrelated business income (UBI) to a tax-exempt organization, reportable on Form 990 and Form 990-T. However, identifying and acknowledging a generous donor should not turn Contribution Revenue into Advertising Income as long as certain rules are followed. Where is the line between acknowledging a sponsor and promoting their products?AdvertisingAdvertising is a payment from an outsider in which the outsider receives a substantial return benefit. An advertisement:• Promotes or encourages the use of the trade, business, service, facility, or product of the payor• “Visit today and check out their...
Lobbying and Political Intervention for NONcharitable Nonprofits
Noncharitable nonprofits include all tax-exempt organizations that are not charities: trade associations, social welfare organizations, labor unions, fraternal organizations, title-holding companies, VEBAs, and a variety of others. Whereas a public charity, which is classified under Internal Revenue Code Section 501(c)(3), is forbidden from engaging in politics and is limited in the amount of lobbying it can do, a noncharitable tax-exempt organization may engage in political activity and unlimited lobbying.LobbyingGenerally, lobbying is a communication designed to influence the passage or defeat of a piece of legislation:Bills, acts, resolutions, Constitutional amendments, and similar items being considered by a legislative body at the...
Can Our Nonprofit Support a Candidate?
For more information, please reach out to us for a free initial consultation.
Affinity Agreements and Unrelated Business Income
Many nonprofit, tax-exempt organizations maintain lists of donors, members, and other supporters. The list will often include names, titles, employers, phone numbers, physical addresses, email addresses, and additional identifying information. Outside organizations, particularly commercial entities, seek to purchase or otherwise access the mailing list to promote their products.Access to the nonprofit organization’s membership list is often part of a larger contract, commonly referred to as an affinity agreement. In general, a tax-exempt organization can enter into affinity agreements that benefit its members, and it may inform and educate the members about such programs. However, when the tax-exempt organization becomes contractually...