|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
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.