Whether you run a nonprofit or serve on the Board, you have a responsibility to make sure the organization is in compliance. There never seems to be enough time to step back, take stock, and launch that preventative compliance review. At a minimum, there are things that any nonprofit can do – and every nonprofit should do:...

For over thirty years, Beacon Mutual has been the leading provider of workers’ compensation insurance in Rhode Island. Beacon Mutual makes it a part of its mission to care about Rhode Islanders. Now, they will fulfill that mission in part through funding The Beacon Foundation. The Beacon Foundation, through the issuance of donations and grants, will...

By Elizabeth Manchester 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...

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...