Starting and Managing a Nonprofit Organization: A Legal Guide

The classic legal guide to nonprofit management, substantially revised and updated

Starting and Managing a Nonprofit Organization: A Legal Guide provides invaluable insight for non–lawyers who lead tax–exempt organizations. Written by the nation′s foremost authority in the field, this book untangles the complexities surrounding nonprofit law to help you successfully navigate the road to compliance. From governance, compensation, and unrelated business, through IRS policy, constitutional law, Form 990 and beyond, this book is packed with critical information nonprofit leaders need to avoid the many legal traps and keep their tax–exempt status intact.

Updated to reflect the latest changes to an ever–evolving field, this new Seventh Edition features the most up–to–date laws and rulings alongside practical operational guidance to help you:

Navigate the complexities of nonprofit tax law with plain–English explanations Understand the stringent rules surrounding reporting, charitable giving, governance, and more Discover the many recent changes in and additions to nonprofit law, and what they mean for everyday operations Demystify procedures, terms, and compliance issues that are essential for maintaining a tax–exempt status

Step–by–step instructions, checklists, a glossary, and a detailed index make it easy to find the answers you need, and straightforward discussion clarifies even the most impenetrable legalese. Starting and Managing a Nonprofit Organization is essential reading for anyone involved in nonprofit leadership and compliance.

Preface vii

PART ONE STARTING A NONPROFIT ORGANIZATION 1

Chapter One: What Is a Nonprofit Organization? 3

Chapter Two: The Nonprofit Organizations Regulatory Scene 17

Chapter Three: Starting a Nonprofit Organization 27

PART TWO BEING NONPROFIT, LEGALLY 39

Chapter Four: Nonprofit Organizations: Much More Than Charity 41

Chapter Five: Nonprofits and Private Benefit 59

Chapter Six: From Nonprofit to Tax–Exempt 77

Chapter Seven: Charities: Public or Private? 93

Chapter Eight: Nonprofit Governance 111

Chapter Nine: Braving Annual Reporting 137

Chapter Ten: Tax Exemption: Not a Paperwork Exemption 149

Chapter Eleven: Charitable Giving Rules 163

Chapter Twelve: Government Regulation of Fundraising 187

PART THREE TAX–EXEMPT ORGANIZATIONS CAN BE TAXABLE, AND SO CAN THEIR MANAGERS 211

Chapter Thirteen: Related or Unrelated? 213

Chapter Fourteen: Lobbying Constraints And Taxes 231

Chapter Fifteen: Political Campaign Activities And More Taxes 243

Chapter Sixteen: Donor–Advised Funds, Tax Shelters, Insurance Schemes And Still More Taxes 253

PART FOUR HELPFUL HINTS AND SUCCESSFUL TECHNIQUES 261

Chapter Seventeen: For–Profit and Nonprofit Subsidiaries 263

Chapter Eighteen: Joint Venturing and Other Partnering 275

Chapter Nineteen: Wonderful World of Planned Giving 291

Chapter Twenty: Putting Ideas into Action 303

PART FIVE SIDESTEPPING TRAPS 313

Chapter Twenty–One: Watchdogs on the Prowl 315

Chapter Twenty–Two: Potpourri of Policies and Procedures 329

Chapter Twenty–Three: Commerciality, Competition, Commensurateness 343

Chapter Twenty–Four: IRS Audits of Nonprofit Organizations 355

Chapter Twenty–Five: Avoiding Personal Liability 375

PART SIX CONSTITUTIONAL LAW PERSPECTIVE 383

Chapter Twenty–Six: Nonprofit Organizations and the Constitution 385

Glossary 409

Index 421

BRUCE R. HOPKINS is the nation′s leading legal authority on tax–exempt organizations, serving clients such as charitable organizations, educational organizations, associations, hospitals, religious organizations, and private foundations. He was awarded the Outstanding Nonprofit Lawyer Award from the American Bar Association in 2007, and has consistently been listed among The Best Lawyers in America in Nonprofit Organizations and Charity Law.