Public Support Test

This classifica¬≠tion of an organization as either a public charity or as a private foundation is important because different tax rules apply to the operations of these two categories. For instance, private foundations are subject to excise taxes… Read More

State Employment related laws for NPOs

Employment related laws differ widely across states. However the common thread for most of the states includes the following employment related laws. Most of these laws apply to employees only and would not apply to volunteers unless otherwise… Read More

State tax framework for non-profits

Different states have different taxation systems and as such provide different kinds of exemption to non-profit organizations. In addition to the sales tax, many states offer exemption on corporate income taxes, excise taxes, franchisee taxes, property taxes and… Read More

NPO Laws Related to Fundraising

Non-profit organizations are required to register with the state attorney general office and comply with the solicitation act for each state, where it raises funds. Registration is a MUST if fund raised by the organization (gross contribution) exceeds:… Read More

IRS laws applicable to NPOs

A non-profit organization is subject to provisions of several sections of the IRS code (title 26). Some common IRS sections relevant to non-profit organizations are: IRS Section Title Section 501 Exemption from tax on corporations, certain trusts, etc… Read More