Welcome to EO Radio Show - Your Nonprofit Legal Resource. This episode covers the provisions of California’s Charitable Fundraising Platforms law (Gov. Code, § 12599.9) relevant to all covered charitable fundraisers and fundraising platforms soliciting in California. Although this is a California law, it is of nationwide interest. The California Attorney General rulemaking has just become final, and several of the new provisions of Title 11 of the California Code of Regulations (CCRs) became effective March 26, 2024. Additional provisions will become effective on June 12, 2024 and January 1, 2025. Today, we cover the details of the reporting obligations, due diligence for the platforms, disclosure and consent requirements, and recordkeeping recommendations for charitable fundraising platforms and platform charities. Show Notes: YouTube channel: www.youtube.com/@farellabraunmartel/podcasts California Attorney General Website page for Charitable Fundraising Platforms (Including Crowdfunding): oag.ca.gov/charities/pl Form PL-1 oag.ca.gov/system/files/media/PL-1.pdf Form PL-2 oag.ca.gov/system/files/media/PL-2.pdf Form PL-3 oag.ca.gov/system/files/media/pf-form-PL-3.pdf Form PL-4 oag.ca.gov/system/files/media/pf-form-PL-4.pdf If you have suggestions for topics you would like us to discuss, please email us at eoradioshow@fbm.com. Additional episodes can be found at EORadioShowByFarella.com.  DISCLAIMER: This podcast is for general informational purposes only. It is not intended to be, nor should it be interpreted as, legal advice or opinion.

Welcome to EO Radio Show - Your Nonprofit Legal Resource. In episode 76, I introduce the provisions of California's Charitable Fundraising Platforms law (Gov. Code, § 12599.9). These rules are relevant to all covered charitable fundraisers and fundraising platforms that are soliciting in California, so although this is a California law, it is of nationwide interest. The California Attorney General's rulemaking has just become final, and several new provisions of the California Code of Regulations became effective on March 26, 2024. Additional provisions will become effective on June 12, 2024 and January 1, 2025. In part one, I introduce key concepts and definitions.  Resources:  YouTube channel: https://www.youtube.com/@farellabraunmartel/podcasts California Attorney General Website page for Charitable Fundraising Platforms (Including Crowdfunding): https://oag.ca.gov/charities/pl California Code of Regulations: Definitions Regarding Charitable Fundraising Platforms and Platform Charities EO Radio Show #29: Nonprofit Basics: What You Need To Know About Expenditure Responsibility If you have suggestions for topics you would like us to discuss, please email us at eoradioshow@fbm.com.  Additional episodes can be found at EORadioShowByFarella.com. DISCLAIMER: This podcast is for general informational purposes only. It is not intended to be, nor should it be interpreted as, legal advice or opinion.

Welcome to EO Radio Show - Your Nonprofit Legal Resource. Episode 75 is the tenth in a series of Quick Tip episodes focusing on the details of state registration of nonprofit corporations. With the help of Joe Hilliard, today we move south to look at the basic state filing requirements for nonprofit corporations operating in North Carolina and South Carolina. You can find all the prior episodes on our website or on the Farella YouTube channel, where there is a playlist just for state filing requirements. We’ll work our way through the rest of the states in future episodes.  Resources:  YouTube channel: www.youtube.com/@farellabraunmartel/podcasts EO Radio Show EP #2: Nonprofit Basics: Designators, Members, Directors, Officers: The Who’s Who of Nonprofit Governance North Carolina: North Carolina Secretary of State Nonprofit Organizations Search: North Carolina Secretary of State Charities & Fundraisers Search (sosnc.gov) North Carolina Secretary of Business Domestic Registrations: https://www.sosnc.gov/divisions/business_registration North Carolina current entity database: https://www.sosnc.gov/online_services/search/by_title/_Business_Registration North Carolina Domestic Nonprofit Forms Index: https://www.sosnc.gov/forms/by_title/_Business_Registration_Nonprofit_Corporations North Carolina Secretary of Business Foreign Registrations: https://www.sosnc.gov/Guides/register_a_foreign_business North Carolina Foreign Registration Forms Index: https://www.sosnc.gov/Guides/register_a_foreign_business/requirements North Carolina Document Online Submission Portal: https://www.sosnc.gov/Guides/online_submission_Of_business_filings North Carolina Processing Times: https://www.sosnc.gov/Guides/online_submission_Of_business_filings/choose_the_examination_method North Carolina Annual Report FAQ: https://www.sosnc.gov/frequently_asked_questions/by_title North Carolina Secretary of State Charities Division: https://www.sosnc.gov/divisions/charities North Carolina Secretary of State Charities Licensing: https://www.sosnc.gov/divisions/charities/licensing North Carolina Charities Forms: https://www.sosnc.gov/forms/by_title/_Charities_Charities_Sponsors North Carolina Charities FAQ: https://www.sosnc.gov/frequently_asked_questions/by_title/_charities_general_public North Carolina Department of Revenue: https://www.ncdor.gov/ North Carolina Sales Tax Exemption FAQ: https://www.ncdor.gov/taxes-forms/sales-and-use-tax/sale-and-purchase-exemptions South Carolina: South Carolina Secretary of State Charities, Professional Fundraisers and Raffles search: https://sos.sc.gov/online-filings/charities-pfrs-and-raffles/search-charities South Carolina Secretary of State Business Division website: https://sos.sc.gov/online-filings/business-entities South Carolina Business Entities Online website: https://businessfilings.sc.gov/businessfiling South Carolina Business Entities FAQ: https://sos.sc.gov/faqs-about-business-entities South Carolina Secretary of State business resources: https://sos.sc.gov/business-resouces South Carolina current entity database: https://businessfilings.sc.gov/BusinessFiling/Entity/Search South Carolina Forms and Fees Schedule: https://businessfilings.sc.gov/BusinessFiling/Home/CategorizedForms South Carolina CL-1 Initial Report form and instructions: https://dor.sc.gov/forms-site/Forms/CL1.pdf South Carolina Department of Revenue Annual Filing FAQ: https://dor.sc.gov/tax/eleemosynary South Carolina Secretary of State Division of Public Charities: https://sos.sc.gov/online-filings/charities-pfrs-and-raffles/charities If you have suggestions for topics you would like us to discuss, please email us at eoradioshow@fbm.com.  Additional episodes can be found at EORadioShowByFarella.com.  DISCLAIMER: This podcast is for general informational purposes only. It is not intended to be, nor should it be interpreted as, legal advice or opinion.

Welcome to EO Radio Show - Your Nonprofit Legal Resource. Charities, foundations, and their founders often request help addressing employment practices and compliance questions. In this episode, host Cynthia Rowland is joined by Holly Sutton, the chair of Farella’s employment law practice and first-rate resource for complicated employment issues for nonprofit and private clients. She will update us on what’s new in California and federal laws that employers need to think about. She also provides some tips on how to think about risk management and employment law compliance now that remote work is here to stay—and even small nonprofit organizations often need to navigate employment laws in several jurisdictions.   Resources:  Holly Sutton bio Farella Employment Law Symposium YouTube playlist Farella employment law publications If you have suggestions for topics you would like us to discuss, please email us at eoradioshow@fbm.com.  Additional episodes can be found at EORadioShowByFarella.com.  DISCLAIMER: This podcast is for general informational purposes only. It is not intended to be, nor should it be interpreted as, legal advice or opinion.

Welcome to EO Radio Show - Your Nonprofit Legal Resource. Episode 73 discusses frequently used terms in the nonprofit world pertaining to investment activities. Public charity and private foundation directors and officers need to understand their obligations as fiduciaries when determining whether an investment opportunity meets the criteria for a prudent investment, a program-related investment, or a mission-related investment. This episode unpacks the rules around each term, covering a basic explanation of “prudent investment,” “PRI,” and “MRI.” The episode concludes with recommendations for ensuring that a private foundation’s investments qualify as PRIs and best practices for developing an investment policy statement that covers the overall portfolio investment policy statement. Resources: Farella YouTube channel: www.youtube.com/@farellabraunmartel/podcasts EO Radio Show #16: Basics of Impact Investing: A Conversation About Investment Policies and Evaluation Metrics For ESG Investors EO Radio Show #35: Hot Topic: UPMIFA in the Context of Financial System Instability IRS Issue Podcasts for charities: www.stayexempt.irs.gov/home/resource-library/issue-podcasts Instructions for 990PF: www.irs.gov/pub/irs-pdf/i990pf.pdf IRS pages on Expenditure Responsibility and Program Related Investments:  www.irs.gov/charities-non-profits/private-foundations/terms-of-grants-private-foundation-expenditure-responsibility www.irs.gov/charities-non-profits/private-foundations/terms-of-program-related-investments-private-foundation-expenditure-responsibility www.irs.gov/charities-non-profits/private-foundations/violations-of-expenditure-responsibility-requirements-private-foundations UPMIFA Documents: www.uniformlaws.org/committees/community-home?CommunityKey=043b9067-bc2c-46b7-8436-07c9054064a3 If you have suggestions for topics you would like us to discuss, please email us at eoradioshow@fbm.com.  Additional episodes can be found at EORadioShowByFarella.com.  DISCLAIMER: This podcast is for general informational purposes only. It is not intended to be, nor should it be interpreted as, legal advice or opinion.

Welcome to EO Radio Show - Your Nonprofit Legal Resource. This is the ninth in a series of “Quick Tip” episodes focusing on the details of state registration of nonprofit corporations. In previous episodes, we talked about filing in Delaware and California, which are the most frequently used by our clients - most of whom have a connection with California. In other episodes, we focused on the state filings in Nevada, Arizona, Washington State, Oregon, Alaska, Hawaii, New York, New Jersey, Massachusetts, Connecticut, Maine, Vermont, Rhode Island, and New Hampshire. With the help of Joe Hilliard, Senior Paralegal at Farella Braun + Martel, today we move south to look at the basic state filing requirements for nonprofit corporations operating in Florida and Louisiana. We’ll work our way through the rest of the states in future episodes. Resources: YouTube channel: https://www.youtube.com/@farellabraunmartel/podcasts For Florida: Florida Department of State Corporations page: https://dos.fl.gov/sunbiz/ Florida's current entity database: https://search.sunbiz.org/Inquiry/CorporationSearch/ByName Florida Department of State Nonprofits formation FAQ: https://dos.fl.gov/sunbiz/start-business/efile/fl-nonprofit-corporation/ Florida Corporations Form Index: https://dos.fl.gov/sunbiz/forms/corporations/ Florida Domestic Nonprofit Articles of Incorporation Instructions: https://dos.fl.gov/sunbiz/start-business/efile/fl-nonprofit-corporation/instructions/ Florida Domestic Nonprofit Articles of Incorporation Form: https://form.sunbiz.org/pdf/cr2e006.pdf Florida Application by a Foreign Not for Profit Corporation for Authorization to Conduct its Affairs Form: https://form.sunbiz.org/pdf/cr2e021.pdf Florida Nonprofit Annual Report FAQ: https://dos.fl.gov/sunbiz/manage-business/efile/annual-report/ Florida Annual Report Instructions: https://dos.fl.gov/sunbiz/manage-business/efile/annual-report/instructions/ Florida Processing Dates: https://dos.fl.gov/sunbiz/document-processing-dates/ Florida Solicitations of Contributions FAQ: https://www.fdacs.gov/business-services/solicitation-of-contributions Florida Charitable Organization Lookup: https://csapp.fdacs.gov/CSPublicApp/CheckACharity/CheckACharity.aspx Florida Department of Revenue: https://floridarevenue.com/Pages/default.aspx Florida Sales Tax Exemption Application FAQ and Application: https://floridarevenue.com/Forms_library/current/dr5.pdf For Louisiana: Louisiana Secretary of State Corporations Division website: https://www.sos.la.gov/BusinessServices/Pages/default.aspx Louisiana geauxBIZ website: https://geauxbiz.sos.la.gov/ Louisiana Secretary of State business formations FAQ page: https://www.sos.la.gov/BusinessServices/FileBusinessDocuments/Pages/default.aspx Louisiana Secretary of State FAQ: https://www.sos.la.gov/BusinessServices/FileBusinessDocuments/FrequentlyAskedQuestions/Pages/default.aspx?OwnershipName=FileBusinessDocuments&faqid=0 Louisiana current entity database: https://coraweb.sos.la.gov/CommercialSearch/CommercialSearch.aspx Louisiana Forms and Fees Schedule: https://www.sos.la.gov/BusinessServices/FileBusinessDocuments/GetFormsAndFeeSchedule/Pages/default.aspx If you have suggestions for topics you would like us to discuss, please email us at eoradioshow@fbm.com.  Additional episodes can be found at EORadioShowByFarella.com.  DISCLAIMER: This podcast is for general informational purposes only. It is not intended to be, nor should it be interpreted as, legal advice or opinion.

Welcome to EO Radio Show - Your Nonprofit Legal Resource. This week, I am delighted to have Stephanie Hood return as my guest. Stephanie is my colleague at Farella Braun + Martel, and a key member of our top-notch estate planning practice and private client industry group. Our clients often come to us with a request to help them think about funding charities during their lifetimes and through their estate plans. In addition to thinking about how to structure the gifts to ensure their charitable intent is carried out, many of these clients are also sensitive to the federal and state tax consequences of their gifts. Stephanie is here today to talk through the complex rules and some traps for the unwary. Resources: Stephanie Hood Bio Farella YouTube Private Foundations playlist EO Radio Show #63: New Proposed Regulations Defining Donor Advised Fund Terms EO Radio Show #64: Exceptions to the DAF Definition Under the Proposed Regulations EO Radio Show #65:  The New Proposed Regulations on DAFs: Taxable Distributions and the Penalty Tax EO Radio Show #44: Charitable Bequests with Stephanie Hood  If you have suggestions for topics you would like us to discuss, please email us at eoradioshow@fbm.com.  Additional episodes can be found at EORadioShowByFarella.com.  DISCLAIMER: This podcast is for general informational purposes only. It is not intended to be, nor should it be interpreted as, legal advice or opinion.

Welcome to EO Radio Show - Your Nonprofit Legal Resource. Today’s episode focuses on IRC Section 4945(g), which provides an exception for grants to individuals so that the penalty taxes for such grants won’t apply. We cover the requirements for a private foundation to establish a program that makes grants to individuals, awarded on an objective and nondiscriminatory basis according to a procedure approved in advance by the IRS. The episode covers the requirements for demonstrating to the satisfaction of the IRS that the grant constitutes a scholarship or fellowship grant or the grant constitutes a prize or award, the purpose of which is to achieve a specific objective, produce a report or other similar product, or improve or enhance a literary, artistic, musical, scientific, teaching, or other similar capacity, skill, or talent of the grantee. Resources: IRS Website link for Form 8940 and Instructions for requesting pre-approval of a grant procedure. Compliance Guide for 501(c)(3) Private Foundations IRS Site on Private Foundation Grants to Individuals Private Letter Ruling 202337010 If you have suggestions for topics you would like us to discuss, please email us at eoradioshow@fbm.com. Additional episodes can be found at EORadioShowByFarella.com.  DISCLAIMER: This podcast is for general informational purposes only. It is not intended to be, nor should it be interpreted as, legal advice or opinion.

Welcome to EO Radio Show - Your Nonprofit Legal Resource. This is the eighth in a series of “Quick Tip” episodes focusing on the details of state registration of nonprofit corporations. With the help of Joe Hilliard, Senior Paralegal at Farella Braun + Martel, today we look at the basic state filing requirements for nonprofit corporations operating in Rhode Island and New Hampshire, such as ease of formation, available standardized documents, filing fees, and similar matters. The laws of all the States prescribe certain formalities that organizers of business entities must go through so that the entity can be regulated and subject to legal process as a person. As with all the States we have discussed, if you do business as a nonprofit in Rhode Island or New Hampshire or solicit charitable contributions there (even if just through the nonprofit corporation’s website), the nonprofit may need to have a legal presence and be registered in these two States. Resources: YouTube channel: https://www.youtube.com/@farellabraunmartel/podcasts For Rhode Island: Rhode Island Department of State Corporations page: https://www.sos.ri.gov/divisions/business-servicesRhode Island's current entity database: https://business.sos.ri.gov/CorpWeb/CorpSearch/CorpSearch.aspxRhode Island Department of State Nonprofits formation FAQ, including forms and fees: https://www.sos.ri.gov/divisions/business-services/non-profit/start-a-non-profit-corporationRhode Island Domestic Nonprofit Articles of Incorporation form: https://docs.sos.ri.gov/documents/BusinessServices/200-articles-of-incorporation.pdfRhode Island Application for Authority for a Non-Profit Corporation Form: https://docs.sos.ri.gov/documents/BusinessServices/250-certificate-of-authority.pdfRhode Island Nonprofit Annual Report FAQ: https://www.sos.ri.gov/divisions/business-services/non-profit/file-your-annual-reportRhode Island Nonprofit Annual Report form: https://docs.sos.ri.gov/documents/BusinessServices/631-non-profit-corporation-annual-report.pdfRhode Island Department of Business Regulation Charitable Organizations website: https://dbr.ri.gov/insurance-banking-securities-and-charitable-organizations/securities-and-charities/charitableRhode Island Charitable Organization License Application: https://dbr.ri.gov/sites/g/files/xkgbur696/files/documents/divisions/securities/Charitable_Organizations_Application.pdfRhode Island Sales Tax Exemption FAQ: https://tax.ri.gov/exemptOrg/index.phpRhode Island Sales Tax Exemption Application: https://tax.ri.gov/sites/g/files/xkgbur541/files/forms/2021/Field-Audit/ExemptOrgApp_w.pdf For New Hampshire: New Hampshire Secretary of State Corporations Division website: https://www.sos.nh.gov/corporationsNew Hampshire Secretary of State "Quickstart" business formation page: https://quickstart.sos.nh.gov/onlineNew Hampshire Secretary of State FAQ: https://sos.nh.gov/corporation-ucc-securities/corporation/faqs/New Hampshire current entity database: https://sos.nh.gov/corporation-ucc-securities/corporation/business-name-lookup/?id=8589984419New Hampshire Nonprofit Corporation FAQ: https://sos.nh.gov/corporation-ucc-securities/corporation/forms-and-fees/domestic-and-foreign-nonprofit-corporation/New Hampshire Domestic Nonprofit Forms and Fees FAQ: https://sos.nh.gov/corporation-ucc-securities/corporation/forms-and-fees/domestic-and-foreign-nonprofit-corporation/domestic-forms/New Hampshire Foreign Nonprofit Forms and Fees FAQ: https://sos.nh.gov/corporation-ucc-securities/corporation/forms-and-fees/domestic-and-foreign-nonprofit-corporation/foreign-forms/ If you have suggestions for topics you would like us to discuss, please email us at eoradioshow@fbm.com.  Additional episodes can be found at EORadioShowByFarella.com.  DISCLAIMER: This podcast is for general informational purposes only. It is not intended to be, nor should it be interpreted as, legal advice or opinion.

Welcome to EO Radio Show - Your Nonprofit Legal Resource. Here we are, solidly in the 2024 election year, and that means that private foundations need to refresh their understanding of election year issues for organizations that want to remain exempt under Internal Revenue Code Section 501(c)(3) and avoid the onerous private foundation excise taxes that come into play if a private foundation funds impermissible legislative lobbying. This week's episode is a refresh of EO Radio Show's episode 8, first released on July 25, 2022. For more information on these related election year issues, listeners may want to go back to episode 66, which covered the limitations in IRC Section 501(c)(3) relating to candidate campaign intervention. Episode 67 refreshed an earlier episode that focused on allowable educational and advocacy activities for public charities, including a discussion of the definition of "lobbying" and the two different rules that apply to public charity, the first of which is the subjective test of Section 501(c)(3) and the second alternative, which is the elective test for charities that make the 501(h) election. Resources: Webinar: Election Year Issues for Private Foundations and Public Charities Bolder Advocacy Article: Private Foundations May Advocate If you have suggestions for topics you would like us to discuss, please email us at eoradioshow@fbm.com.  Additional episodes can be found at EORadioShowByFarella.com.  DISCLAIMER: This podcast is for general informational purposes only. It is not intended to be, nor should it be interpreted as, legal advice or opinion.

Welcome to EO Radio Show - Your Nonprofit Legal Resource. As most listeners are undoubtedly aware, 2024 is an election year, and that means that charities and private foundations need to refresh their understanding of election-year issues for organizations that want to remain exempt under Internal Revenue Code Section 501(c)(3). This week’s episode is a refresh of EO Radio Show episode 7, first released on July 18, 2022. Today’s focus is on allowable educational and advocacy activities for public charities, including a discussion of the definition of “lobbying” and the two different rules that apply to public charity. The first is the subjective test of Section 501(c)(3), and the second alternative is the elective test for charities that make the 501(h) election to allow for an objective limitation on lobbying expenditures.  For more information on these related election year issues, listeners may want to go back to last week’s episode 66, covering the limitations in IRC section 501(c)(3) relating to candidate campaign intervention. Stay tuned for episode 68, which will refresh episode 8, covering permissible private foundation policy advocacy activities, also likely to be a hot topic in 2024.  Be sure to check out the show notes for resources from the IRS on these topics, and check out the Farella Braun + Martel YouTube channel for the complete EO Radio Show playlist. Resources: Farella Webinar: Election Year Issues for Private Foundations and Public Charities Bolder Advocacy Podcast:https://bolderadvocacy.org/podcast/ IRS Chart: Common Tax Law Restrictions on Activities of Exempt Organizations IRS Form 5768 for 501(h) election:https://www.irs.gov/pub/irs-pdf/f5768.pdf National Council of Nonprofits: Taking the 501(h) Election:https://www.councilofnonprofits.org/taking-the-501h-election Treasury Regulations on Exempt Purpose Expenditures:https://www.law.cornell.edu/cfr/text/26/56.4911-4 Farella YouTube podcasts If you have suggestions for topics you would like us to discuss, please email us at eoradioshow@fbm.com. Additional episodes can be found at EORadioShowByFarella.com.  DISCLAIMER: This podcast is for general informational purposes only. It is not intended to be, nor should it be interpreted as, legal advice or opinion.

Welcome to EO Radio Show - Your Nonprofit Legal Resource. I’m Cynthia Rowland, and this is episode 66 of EO Radio Show. Happy New Year to all of you! As most listeners are undoubtedly aware, 2024 is an election year, and that means that charities and private foundations need to refresh their understanding of election-year issues for organizations that want to remain exempt under Internal Revenue Code Section 501(c)(3). This week’s episode is a refresh of episode 6 of EO Radio Show, first released on July 7, 2022. Episode 6 covered the limitations of 501(c)(3) relating to candidate campaign intervention. I’ll also refresh Episodes 7 and 8 in the next few weeks. These episodes address legislative lobbying by public charities and private foundations, which will also likely be hot topics in 2024. Check out the show notes for resources from the IRS on these topics, and check out the Farella Braun + Martel YouTube channel for the complete EO Radio Show playlist. Resources: Farella Webinar: Election Year Issues for Private Foundations and Public Charities Bolder Advocacy Resource Library IRS Chart: Common Tax Law Restrictions on Activities of Exempt Organizations Treasury Regulation 53.4945-3, Voter Registration Drives Instructions for IRS Form 8940, Request for Miscellaneous Determinations, used to obtain advance approval of certain voter registration drives under IRC 4945(f) Farella YouTube podcasts If you have suggestions for topics you would like us to discuss, please email us at eoradioshow@fbm.com.  DISCLAIMER: This podcast is for general informational purposes only. It is not intended to be, nor should it be interpreted as, legal advice or opinion.

Welcome to EO Radio Show - Your Nonprofit Legal Resource. In today's episode, the final episode on the new DAF regulations, we take a close look at the new Proposed Regulations 53.4966-2 and -5, which cover the definition of taxable distributions from donor advised funds and the onerous penalty taxes that can apply. When a fund is a DAF, and a distribution is a taxable distribution, significant penalties apply to the sponsoring organization and the donor advisor or fund advisor. This episode discusses the new guidance on what distributions are taxable and the amount of the penalty taxes imposed. Resources: Federal Register: Taxes on Taxable Distributions From Donor Advised Funds Under Section 4966 EO Radio Show - EP 64: Exceptions to the DAF Definition Under the Proposed Regulations EO Radio Show - EP 63: New Proposed Regulations Defining Donor Advised Fund Terms EO Radio Show - EP 62: An Introduction to DAFs and Overview of the Newly Proposed DAF Regulations EO Radio Show - EP 61: In the Weeds With New Supporting Organization Regulations EO Radio Show - EP 24: Nonprofit Basics: Supporting Organizations Part 2 - Orientation for Understanding Type III Supporting Organizations EO Radio Show - EP 23: Nonprofit Basics: Supporting Organizations - Part 1 EO Radio Show – EP 29: Nonprofit Basics: What You Need To Know About Expenditure Responsibility If you have suggestions for topics you would like us to discuss, please email us at eoradioshow@fbm.com. Additional episodes can be found at EORadioShowByFarella.com.  DISCLAIMER: This podcast is for general informational purposes only. It is not intended to be, nor should it be interpreted as, legal advice or opinion.

Welcome to EO Radio Show - Your Nonprofit Legal Resource. Episode 64 continues the exploration of the new proposed regulations important to the administration of Donor Advised Funds. The Internal Revenue Service and the Treasury Department published a Notice of proposed rulemaking on November 13, 2023, which was officially published in the Federal Register on November 14, 2023. The Proposed Regulations provide guidance to sponsoring organizations, which include community foundations and many other types of charities that maintain one or more DAFs. The Proposed Regulations are also important for persons involved with DAFs, including the donors, the donor advisors, related persons, and certain fund managers. Episodes 62 and 63 covered the basic rules that apply to sponsoring organizations and DAFs and looked closely at the defined terms in Proposed Regulations. In this episode, we cover the important exceptions to the DAF definitions that take certain funds held by sponsoring organizations out of the onerous penalty tax regime that can apply to the operations of DAFs.  Resources:  Federal Register: Taxes on Taxable Distributions From Donor Advised Funds Under Section 4966 EO Radio Show - EP 63: New Proposed Regulations Defining Donor Advised Fund Terms EO Radio Show - EP 62: An Introduction to DAFs and Overview of the Newly Proposed DAF Regulations EO Radio Show – EP 10: Nonprofit Basics: Setting up a New Charity for Disaster Relief EO Radio Show – EP 9: Nonprofit Basics: Charitable Support for Individuals Affected by a Disaster If you have suggestions for topics you would like us to discuss, please email us at eoradioshow@fbm.com.  Additional episodes can be found at EORadioShowByFarella.com.  DISCLAIMER: This podcast is for general informational purposes only. It is not intended to be, nor should it be interpreted as, legal advice or opinion.

Welcome to EO Radio Show - Your Nonprofit Legal Resource. Episode 63 explores new proposed regulations important to the administration of Donor Advised Funds (DAFs). The Internal Revenue Service and the Treasury Department published a Notice of proposed rulemaking on November 13, 2023, which was officially published in the Federal Register on  November 14, 2023. The Proposed Regulations provide guidance to sponsoring organizations, which include community foundations and many other types of charities that maintain one or more DAFs. The Proposed Regulations are also important for persons involved with DAFs, including the donors, the donor advisors, related persons, and certain fund managers. In the previous EO Radio Show, episode 62, I introduced the basic rules that apply to sponsoring organizations and DAFs and a brief summary of the highlights in the Proposed Regulations. This episode looks closely at the defined terms in Proposed Regulations sections 53.4966-1 and -3 and includes a brief summary of the highlights in the Proposed Regulations. In upcoming episodes, we’ll discuss the exceptions to the definition of a DAF, and the penalties that can apply if a DAF makes taxable distributions. Resources: Federal Register: Taxes on Taxable Distributions From Donor Advised Funds Under Section 4966 EO Radio Show EP 62: An Introduction to DAFs and Overview of the Newly Proposed DAF Regulations EO Radio Show EP 61: In the Weeds With New Supporting Organization Regulations EO Radio Show EP 23: Nonprofit Basics: Supporting Organizations - Part 1 EO Radio Show EP 24: Nonprofit Basics: Supporting Organizations Part 2 - Orientation for Understanding Type III Supporting Organizations If you have suggestions for topics you would like us to discuss, please email us at eoradioshow@fbm.com.  Additional episodes can be found at EORadioShowByFarella.com. DISCLAIMER: This podcast is for general informational purposes only. It is not intended to be, nor should it be interpreted as, legal advice or opinion.

Welcome to EO Radio Show - Your Nonprofit Legal Resource. I’m Cynthia Rowland, and episode 62 describes new proposed regulations important to the administration of donor advised funds. The Internal Revenue Service and the Treasury Department published a Notice of proposed rulemaking on November 13, 2023, officially published in the Federal Register on November 14, 2023. These Proposed Regulations guide sponsoring organizations, which include community foundations and many other types of charities that maintain one or more donor advised funds. The Proposed Regulations are also important for persons involved with donor advised funds, including the donors, the donor advisors, related persons, and certain fund managers. This episode introduces the basic rules that apply to sponsoring organizations and donor advised funds and includes a brief summary of the highlights of the Proposed Regulations. Resources: Federal Register: Taxes on Taxable Distributions From Donor Advised Funds Under Section 4966 If you have suggestions for topics you would like us to discuss, please email us at eoradioshow@fbm.com.  Additional episodes can be found at EORadioShowByFarella.com.  DISCLAIMER: This podcast is for general informational purposes only. It is not intended to be, nor should it be interpreted as, legal advice or opinion.

Welcome to EO Radio Show - Your Nonprofit Legal Resource. I'm Cynthia Rowland, and today’s episode discusses highly technical Supporting Organization rules for public charity qualifications for charitable organizations. Last year, episodes 23 and 24 of EO Radio Show covered the complex rules that describe supporting organizations, which are a special classification of public charity for US federal income tax purposes. All supporting organizations must pass complicated tests intended to ensure that the supported organization is not effectively a private foundation. These rules were initially enacted in 2006, and proposed regulations were published in 2016. On October 13, 2023, the US Treasury released new final regulations that make minor changes to the Type I test and more significant clarifications to the Type III requirements. This episode outlines the changes made in these final regulations applicable to certain parts of the qualification criteria for supporting organizations. Resources: Federal Register: Requirements for Type I and Type III Supporting Organizations EO Radio Show EP 23: Nonprofit Basics: Supporting Organizations - Part 1 EO Radio Show EP 24: Nonprofit Basics: Supporting Organizations Part 2 - Orientation for Understanding Type III Supporting Organizations If you have suggestions for topics you would like us to discuss, please email us at eoradioshow@fbm.com.  Additional episodes can be found at EORadioShowByFarella.com.  DISCLAIMER: This podcast is for general informational purposes only. It is not intended to be, nor should it be interpreted as, legal advice or opinion.

Welcome to EO Radio Show – Your Nonprofit Legal Resource. I'm Cynthia Rowland, and this is episode 60 of EO Radio Show. This week's episode is a refresh of episode 10, first recorded on July 3, 2022. Episode 10 provided a checklist of considerations for nonprofit leaders when organizing a new charity to provide relief to individuals and businesses in the aftermath of a disaster. Sometimes, it feels like I should rerun this episode every month since we seem to be in the midst of disasters in the charitable field all the time. While we seem to be on the other side of the COVID-19 pandemic, we still see a seemingly constant barrage of terrorist attacks, hurricanes, earthquakes, and other disasters around the world. The focus of this episode is on the many steps a new domestic U.S. charitable organization needs to take to be on a solid road to providing the support needed. Also, for an episode that addresses the distinction between disaster relief for a charitable class as compared to a private benefit for a specific individual affected by a disaster, go back to episode 9 of EO Radio Show, and you'll find details there. Resources: Nonprofit State Filings YouTube playlist  Episode 5: Nonprofit Basics: Navigating the Complex Rules That Describe A Public Charity Episode 9: Nonprofit Basics: Charitable Support for Individuals Affected by a Disaster IRS Form 3833:  Disaster Relief, Providing Assistance Through Charitable Organizations. IRS Form 1023: Application for Recognition of Exemption Under Section 501(c)(3) of the IRC IRS Publication 1771: Charitable Contributions and Substantiation Requirements If you have suggestions for topics you would like us to discuss, please email us at eoradioshow@fbm.com. Additional episodes can be found at EORadioShowByFarella.com. DISCLAIMER: This podcast is for general informational purposes only. It is not intended to be, nor should it be interpreted as, legal advice or opinion.

Welcome to EO Radio Show – Your Nonprofit Legal Resource. I'm Cynthia Rowland, and episode 59 is the seventh in a series of Quick Tip episodes focusing on the details of state registration of nonprofit corporations. In episode 38, we talked about filing in Delaware and California, which are the most frequently used by our clients - most of whom have a connection with California. Episode 40 focused on filings in Nevada and Arizona; 43 looked at Washington State and Oregon; 47 addressed Alaska and Hawaii; 52 looked at New York and New Jersey; and most recently episode 55 looked at Massachusetts and Connecticut. With the help of Joe Hilliard, this episode looks at the basic state filing requirements for nonprofit corporations operating in Maine and Vermont. We'll work through the rest of the states in future episodes. Resources: YouTube channel For Maine: Maine Secretary of State Corporations page: https://www.maine.gov/sos/cec/ Maine current entity database: https://apps1.web.maine.gov/nei-sos-icrs/ICRS?MainPage=x Maine nonprofit formation FAQ, including forms and fees: https://www.maine.gov/sos/cec/corp/nonprofit.html Maine filing FAQ: https://www.maine.gov/sos/cec/corp/miscellaneous.html Maine Domestic Nonprofit Articles of Incorporation form: https://www.maine.gov/sos/cec/forms/nonprofit/mnpca6.pdf Maine Application for Authority to Carry on Activities form: https://www.maine.gov/sos/cec/forms/nonprofit/mnpca12.pdf Maine Annual Report online form request: https://www.maine.gov/sos/cec/corp/annual.html Maine Annual Report paper form request: https://apps1.web.maine.gov/online/aro/form_download.html Maine Professional & Financial Regulation Charitable Solicitations Act Licensing website: https://www.maine.gov/pfr/professionallicensing/professions/charitable-solicitations-act Maine Charitable Organization License Application: https://www.maine.gov/pfr/professionallicensing/sites/maine.gov.pfr.professionallicensing/files/inline-files/CHA-org-app.pdf Maine Sales Tax Exemption FAQ: https://www.maine.gov/revenue/taxes/sales-use-service-provider-tax/tax-exempt-organizations Maine Association of Nonprofits website: https://www.nonprofitmaine.org/starting-a-maine-nonprofit For Vermont: Vermont Secretary of State Business Services website: https://sos.vermont.gov/corporations/ Vermont current entity database: https://bizfilings.vermont.gov/online/BusinessInquire/ Vermont Nonprofit Corporation FAQ: https://sos.vermont.gov/corporations/registration/domestic-registration/nonprofit-corp/ Vermont Attorney General "Understand Your Responsibilities: Guidance for Board Members of Charitable Nonprofit Organizations in Vermont:" https://ago.vermont.gov/sites/ago/files/wp-content/uploads/2018/01/Charitable-Nonprofit-Board-Guidance.pdf Vermont Forms and Fees FAQ: https://sos.vermont.gov/corporations/fees/#tnonprofit2 Vermont Annual Report online form request: https://sos.vermont.gov/corporations/renewals-updates/reports-renewals/annual-biennial-reports/ Vermont Office of the Attorney General Charitable Registration: https://ago.vermont.gov/divisions/charities-and-paid-fundraisers Vermont Department of Taxes website: https://tax.vermont.gov/ If you have suggestions for topics you would like us to discuss, please email us at eoradioshow@fbm.com.  Additional episodes can be found at EORadioShowByFarella.com.  DISCLAIMER: This podcast is for general informational purposes only. It is not intended to be, nor should it be interpreted as, legal advice or opinion.

Welcome to EO Radio Show – Your Nonprofit Legal Resource. Today, I'm talking about the meaning of expenditure responsibility or ER grants made by private foundations. The term expenditure responsibility refers to the rules that a private grant-making foundation follows to avoid the onerous penalty tax on a grant or transaction that would otherwise be a taxable expenditure if made by the private foundation. Taxable expenditures include various types of grants and expenses paid by private foundations, which the Internal Revenue Code prohibits. These types of prohibited payments include lobbying, politicking, and candidate campaign expenses; grants to individuals for travel, study, or other similar purposes unless specific requirements are met; and grants that are not for charitable purposes. A final bucket of grant types that can cause a foundation to be penalized under these rules are grants made to organizations that are not classified as a public charity or an operating foundation unless the foundation exercises expenditure responsibility with respect to that grant. So, this is where the ER rules come into play. Expenditure responsibility is comprised of five requirements. We'll walk through all five elements in this episode. Resources: Farella YouTube podcast channel  IRS Issue Podcasts for charities  IRS pages on Expenditure Responsibility:  Terms of Grants - Private Foundation Expenditure Responsibility Terms of Program-Related Investments: Private Foundation Expenditure Responsibility Violations of Expenditure Responsibility Requirements - Private Foundations Pre-Grant InquiryTreasury Regulations on Taxable Expenditures    If you have suggestions for topics you would like us to discuss, please email us at eoradioshow@fbm.com.  Additional episodes can be found at EORadioShowByFarella.com.  DISCLAIMER: This podcast is for general informational purposes only. It is not intended to be, nor should it be interpreted as, legal advice or opinion.