| The Law Offices of Glenn A. Howard are prepared to provide a wide array of legal and consulting services for nonprofit and for profit organizations, including both formation services and on-going assistance. Nonprofit law is constantly evolving, for example, do you know: ABOUT INTERNAL REVENUE SERVICE The new annual IRS information return, Form 990, strongly encourages “best practices,” including a Conflicts of Interest Policy with a process for enforcement, Board review of the Form 990, a policy concerning retention and destruction of documents, and a whistle-blower procedure that is made available to all employees. The Form 990 requires disclosure of compensation of the chief executive officer and all other “key employees” paid more than stated amounts. If IRS determines that a related party received “excess benefits,” it can require disgorgement of the excess benefits and payment of a penalty of 25%, plus a 10% penalty against individual Directors. ABOUT STATE ATTORNEY GENERALS All public benefit nonprofit organizations that solicit donations in California must make an initial filing (now within 30 days after receipt of property), as well as annual filings with the Office of the California Attorney General. Casino Nights, raffles, and bingo games conducted by California nonprofits, with some exceptions, are illegal unless operated according to restrictions and registration with the A/G’s office. Most states require some form of Attorney General filing in order to solicit funds within their state, including web solicitations and on-line donations; filing requirements, fees, exemptions, etc., vary widely from state to state. ABOUT CALIFORNIA NONPROFIT LAW An Audit Committee of the Board with specified composition and responsibilities is generally required by California law if a nonprofit organization’s revenue is $2 million or more per year. Compensation of the Chief Executive Officer and the Chief Financial Officer must be approved in advance as just and reasonable by a nonprofit’s Board of Directors or an authorized Board Committee. Solicitations of donations are regulated by the California Government Code. All contracts with commercial fundraisers must be in writing and must contain provisions specified in new California statutes. Transactions between a nonprofit director, officer or employee and the nonprofit organization are regulated by the California Corporations Code, and upon compliance with the precise provisions of the law, are permitted if they are fair and beneficial to the nonprofit. |
LAW OFFICES OF
GLENN A. HOWARD
GLENN A. HOWARD
Legal and Consulting Services for
Nonprofit Organizations
Nonprofit Organizations
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