Charities increasingly receive inquiries from donors regarding the entity’s willingness to accept cryptocurrency (“crypto”) donations. In the wake of the pandemic, charities should consider ways to diversify fundraising efforts in a compliant manner. Charities can best prepare themselves with the following steps to evaluate and accept cryptocurrency donations. Review and revise gift acceptance policies. Every...

With the threat of cyber-attacks making the news, it is a good time for all non-profit organizations to review their policies and procedures with respect to data privacy. Many non-profit organizations are particularly vulnerable to legal, financial, and reputational risks resulting from cyber-attacks and other data breaches because they do not have the staff, time,...

As fundraising for nonprofit organizations increasingly becomes digitally based, entities should take steps to review regulatory requirements in all states. States regulate fundraising, whether conducted in person, online or through social media. Charities should review registrations requirements related to: Charities that fundraise Professionals or advisors that fundraise on behalf of charities Regulations pertaining to business...

Utilize a Formal Employment Application (Optional but Recommended) Nonprofits should require applicants to fill out an employment application prior to starting work, even if the applicant is known to the nonprofit. While it seems like a formality, an application will help the nonprofit defend against negligent hiring claims. Depending on the position and circumstances, the nonprofit...

What Is an Endowment? An endowment is a pool of money, invested to create a reliable stream of annual income. A fund held by a charitable institution that, under the terms of a gift instrument, is not wholly expendable by the institution on a current basis. The creation of the fund may be directed by...

The Internal Revenue Service reminds tax-exempt organizations that operate on a calendar-year (CY) basis that certain annual information and tax returns they file with the IRS are due on May 17, 2021. These returns are: Form 990-series annual information returns (Forms 990, 990-EZ, 990-PF, 990-BL) Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to...

Many organizations are in the process of determining whether or not they are eligible to receive a second draw Paycheck Protection Program (“PPP”) loan. Although many of the eligibility requirements for second draw PPP loans are the same as for first draw PPP loans, second draw PPP loans have additional eligibility requirements. In particular, an...

You are ready to join a nonprofit board so you can help support the good work that it does. Do you know the risks associated with serving in this important role? In both Massachusetts and Rhode Island, directors of nonprofit corporations must discharge duties in good faith and in a manner he or she believes...

We’ve all seen the ads: “a portion of our sales are donated to charity”, “for every dollar you spend here, we will donate to a local food pantry”, “for every bag of dog food purchased we will donate to an animal shelter”. This type of advertising is referred to as a “commercial co-venture”, although it...