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Posted on May 24, 2017
In a world of almost non-stop negative news and reports of violence it’s hard to imagine the world is headed in the right direction. But, don’t believe everything you see on the news. ...
Continue reading "The world may be full of problems, but Americans are donating billions to charity to help." »
Posted on Aug 8, 2016
No. Although you must file IRS Form 990 with the Internal Revenue Service (IRS) annually, nonprofit corporations are generally not required to file Form 990 with the Texas attorney general or the ...
Continue reading "Can I obtain a copy of a nonprofit corporation's IRS Form 990 from the Texas Secretary of State?" »
Posted on Mar 27, 2016
An exempt organization that has changed its name must report the change on its next annual return (Form 990 or 990-EZ). An organization that does not file an annual return (for example, an ...
Continue reading "Our Nonprofit Changed our name. How do we notify the IRS?" »
Posted on Jan 16, 2016
A private operating foundation is not subject to the tax on net investment income if it is an exempt operating foundation. In addition, private foundations may make grants to exempt operating ...
Continue reading "What is an Exempt Operating Foundation?" »
Posted on Jan 1, 2016
There is an excise tax on the next investment income of most domestic private foundations. This tax must be reported on Form 990-PF, Return of Private Foundation, and must be paid annually at the time ...
Continue reading "What are Private Foundation Excise Taxes?" »
Posted on Dec 16, 2015
Yes, in accordance with Section 22.151 of the Texas Business Organizations Code (TOB), a nonprofit corporation may have one or more classes of members or it may have no members at all. If the ...
Continue reading "Can our Nonprofit have Members?" »
Posted on Dec 1, 2015
Section 22.103 of the Texas Business Organizations Code (TBOC) controls. Sec. 22.103 provides that a provision of a certificate of formation of a corporation that is inconsistent with a bylaw controls ...
Continue reading "What if a provision in our bylaws is inconsistent with our Certificate of Formation?" »
Posted on Nov 30, 2015
An organization that claims tax-exempt status under section 501(a), but has not yet received an IRS letter recognizing exempt status, is generally required to file an annual exempt organization ...
Continue reading "Are we required to file IRS Form 990 if we haven't been approved yet by the IRS?" »
Posted on Nov 16, 2015
That depends. There are several situations where that is entirely permissible. Section 22.102 of the Texas Business Organizations Code (TBOC) controls Section 22.012 provides that: (a) The initial ...
Continue reading "Can our Board of Directors just change the bylaws without the members Voting on it?" »
Posted on Oct 9, 2015
The IRS established rules against excess business holdings intended to keep private foundations from owning a significant stake in a family business. Breaking those rules can have serious consequences ...
Continue reading "Can a private foundation own all or part of a family business?" »
Posted on Sep 9, 2015
I just setup a private family foundation. Can I hire a staff to run it? The answer often turns on the size of the foundation assets and its total annual charitable budget. The real question is how ...
Continue reading "Staffing your Foundation Team" »
Posted on Aug 17, 2015
Yes, this is possible. However, the reverse is not true. Section 10.108 of the Business Organizations Code (BOC) prohibits a Texas nonprofit corporation may not convert to a for-profit entity. If your ...
Continue reading "Can a Texas for-profit entity merge with a Texas nonprofit corporation?" »
Posted on Jul 15, 2015
Generally speaking, yes. Appointing children or other family members as officers or directors is common. This practice makes it possible for your to perpetuate a philanthropic culture within your ...
Continue reading "Can I or members of my family be employed by my foundation?" »
Posted on May 11, 2015
In answering our question, we need to know who the intended recipient is and how much the company is proposing to contribute. Both are vital to determine whether a company can receive a charitable ...
Continue reading "Our company wants to make a donation to charity, what kind of deduction can we claim?" »
Posted on Mar 2, 2015
The organizer or organizers of the nonprofit corporation must execute, acknowledge and file the certificate of formation. Under the Texas Business Organizations Code (TBOC), only one organizer is ...
Continue reading "I am not a U.S. Citizen, can I start a Texas nonprofit corporation?" »
Posted on Jan 5, 2015
We have not filed our IRS Form 990 and its going to be late. What can we do? All three returns — Form 990, Form 990-EZ and Form 990— are due by the 15th day of the 5th month after your ...
Continue reading "What You Can do if Your IRS Form 990 is Filed Late" »
Posted on Dec 16, 2014
For a seemingly simple question, the answer can be quite complex. The short answer is, it depends. I am not an immigration lawyer, but I am quite familiar with nonprofits. Current immigration ...
Continue reading "I am an H-1B visa holder. Can I start a nonprofit while still working for my employer?" »
Posted on Nov 24, 2014
Let's assume you volunteer 6 hours a week in the office of a qualified organization. The receptionist is paid $10 an hour for the same work. It only makes sense that the value of your time is at ...
Continue reading "Can Volunteers take a charitable deduction for donating their time?" »
Posted on Nov 10, 2014
You can deduct as a charitable contribution any unreimbursed expenses you have while in a permanent diaconate program established by your church. These expenses include the cost of vestments, ...
Continue reading "I am a Church Deacon. What can I deduct?" »
Posted on Oct 27, 2014
If you pay a qualified organization more than fair market value for the right to attend a charity ball, banquet, show, sporting event, or other benefit event, you can deduct only the amount that is ...
Continue reading "What are the rules on charitable deductions for the Ball?" »
Posted on Oct 13, 2014
Yes, but with some conditions. Under the U.S.Israel income tax treaty, a contribution to an Israeli charitable organization is deductible if and to the extent the contribution would have been ...
Continue reading "Can I make a donation to an Israeli Charity and receive a deduction?" »
Posted on Sep 29, 2014
Generally, you cannot deduct a charitable contribution of less than your entire interest in property. A contribution of the right to use property is a contribution of less than your entire interest in ...
Continue reading "Can a person take a tax deduction for donating space in a building to a charity?" »
Posted on Sep 22, 2014
First, it's helpful to understand that Texas law provides for unincorporated nonprofit associations. Texas law concerning unincorporated nonprofit associations is codified as chapter 252 of the ...
Continue reading "Do I need to incorporate or file with the IRS to accept donations?" »
Posted on Sep 11, 2014
Every organization that qualifies for tax exemption as an organization described in section 501(c)(3) is a private foundation unless it falls into one of the categories specifically excluded from the ...
Continue reading "A Primer of Private Foundations" »
Posted on Sep 4, 2014
Answer: The IRS sometimes recognizes a group of organizations as tax-exempt if they are affiliated with a central organization. This avoids the need for each of the organizations to apply for ...
Continue reading "What is a Group Exemption Letter?" »