 |
|
PLEASE help us HELP YOU! Fill out our quick and easy online survey to help us enhance Rich Tips AND to receive a free subscription to our future online grant deadline calendars. The results of the survey will help us tailor our grants deadline calendars (and our future Rich Tips editions) to the needs of our readership. None of the information you provide will be sold or distributed. Protecting your privacy is extremely important to us. Click here to access the survey. Rich Tips is a free electronic newsletter published by Richard Male & Associates (RMA), a nonprofit consulting firm. Please send any suggestions or comments to nicolle@richardmale.com. ---------------------------------------------------------------------------- This week's tips: Nonprofits and the IRS: Keeping your organization in compliance Nonprofit organizations benefit from certain advantageous tax benefits and privileges, of which for-profit corporations could only dream. For example, 501 (c) (3) organizations typically don't have to pay property taxes, are exempt from many sales taxes, and nonprofit donations are almost always tax-exempt. However, there are many IRS reporting requirements and regulations of which leaders of nonprofit organizations must be aware. Some of these are simple (such as filing updated information with your state every few years), while others can be quite complex (such as the rules on lobbying, unrelated business income, filing the IRS 990 form, etc.). Ever since the Sarbanes-Oxley Act of 2002 came into effect, for-profits and nonprofits have come under intense government and public scrutiny. For the financial security of your organization, it is wise to stay on top of the issues surrounding this act. I'm not a lawyer so don't consider information in this article legal advice, but as an executive director of nonprofit organizations for 26 years and working full-time with nonprofits for 35 years I can offer you a number of strategies that will help keep your organization in compliance. 1. Although your nonprofit is tax-exempt from federal income tax, you still have to deal with tax issues. Although, you don't have to pay federal income tax, you may have to pay city and county personal property tax, tax on phone bills, state tax liability, etc. Make sure your nonprofit organization is in compliance. 2. If you have recently received your 501 (c)(3), you've probably received a conditional advanced ruling period of up to 4-5 years. You need to be careful that you file the required IRS 990 forms (if you spend more than $25,000 in your fiscal year) during this time period and abide by all regulations. During these first few years, the IRS will diligently review your records and use the information they gather to grant (or not grant) your nonprofit permanent 501 (c)(3) status. 3. Make sure you file your IRS 990 form every year. Pay particular attention to the section of the form that asks for the percentage of expenses going toward: programs, fundraising and administrative expenses. The general rule is to have more than 75 percent of your expenses going toward programs, and less than 25 percent going toward administrative and fundraising costs. 4. Nonprofit 501 (c)(3) organizations are divided into two IRS categories: public charities and private foundations. Public charities must emphasize their work with the public in terms of financial percentages. Essentially, one-third of your revenue must come from the community through various donations, gifts, grants, memberships, etc. The government calls this a public support test and you must be in compliance with it. Private foundations don't have these requirements but they do have to pay 2 percent excise tax on their investments as well as adhere to other very strict requirements. 5. When having a special event, remember that the entire price of each ticket is NOT tax deductible. If you're having an annual dinner and the cost of the tickets are $100, while the price of the meal is $30 to the organization, only $70 of the donation is tax deductible in the form of a gift. Make sure the attendees know this 6. There are many types of charitable donations — let your donors know what you will accept: cash, stock, art objects, real estate, life insurance policies, etc. Many people will want to give gifts other than cash, and you should be prepared to accept gifts in many forms. Obviously, you will need to seek legal and financial advice from qualified persons when dealing with these kinds of non-cash donations. 7. Lobbying is a key issue with which you should become familiar. The IRS encourages nonprofit organizations to get involved in the legislative process and public policy issues. They don't allow you to spend dollars to elect a particular politician (although you could form a political action committee), but they're supportive of grassroots lobbying and advocating positions when non-substantial amount of dollars are at stake. The government has been very vague about the definition of what "substantial" is, so if you're going to do any "substantial" lobbying it's wise to hold an “H election,” which allows your organization to spend 20 percent of its first $500,000 in expenses on lobbying, with decreasing percentages up to $1 million. The Independent Sector has information on their web page about these rules. 8. The Unrelated Business Income Tax (UBIT) is becoming more popular as nonprofits are acting more like businesses and generating revenue through sales of products, opening up businesses, and taking part in other commercial activities. Generally, if your enterprises fit "squarely" into the mission of your organization, you usually don't have to worry about UBIT. But if you're opening up a business purely as an earned income stream for your nonprofit, you need to carefully look into UBIT and realize that you'll be paying taxes, just like a for-profit business, on your sales and profits. 9. If your organization does any telephone solicitation make sure you check with your state to see if you have to file as a fundraising organization. During the past decade many states have passed legislation controlling telemarketing firms. If a telemarketing firm is soliciting gifts for your organization in which the majority of the gift goes to them rather than you, you might want to re-think your tactics. Make sure you are always in compliance, both legally and ethically. 10. A valuable book that looks at the whole field of nonprofit financial management is Financial Management for Nonprofits: Keys to Success, Third Edition by Peter Konrad and Alys Novak available from Bayaud Industries. To order, call Dave Busenbark at 303-830-6885, ext. 209, or dave.busenbark@bayaudindustries.org - their address is 333 West Bayaud Ave. Denver, CO 80223 ------------------------------------------------------------- New Grant Opportunities Green Communities Initiative The Green Communities Initiative is a five-year, $550 million initiative to build more than 8,500 homes across the United States that provide significant health, economic, and environmental benefits to low-income families and communities. The effort is a partnership of the Enterprise Foundation and the Natural Resources Defense Council, in collaboration with the American Institute of Architects, the American Planning Association, and leading corporate, financial, and philanthropic organizations. The initiative will offer financing, grants, and technical assistance to developers to build affordable housing that promotes health, conserves energy and natural resources, and provides easy access to jobs, schools, and services. Grants will help cover the costs of planning and implementing green components of affordable housing projects, as well as tracking their costs and benefits. For detailed information go to: http://www.enterprisefoundation.org/resources/green/index.asp Fannie Mae Foundation Fellowship Program The Fannie Mae Foundation Fellowship Program supports the professional development of senior public and non-profit officials committed to affordable housing in the United States . The Fannie Mae Foundation partners with the John F. Kennedy School of Government at Harvard University to offer the program. Since 1996, the foundation has annually sponsored up to thirty-five fellowships for elected and appointed officials, as well as senior managers in the Program for Senior Executives in State and Local Government. The three-week (June 12 - July 1, 2005) summer program is intended to enhance the management and decision-making skills of accomplished leaders experienced in managing housing and community development programs. The program curriculum focuses on organizational strategy; political management; policy development; management control and operations; and management of human resources. The program is taught by Kennedy School faculty. In addition to participation in the Program for Senior Executives, Fannie Mae Foundation Fellows attend special sessions that address housing issues, trends, policies, and successful models of public/private housing partnership. Fellowship funds cover the cost of the admission deposit, program tuition, and room and board for the session. For detailed information go to: http://www.fanniemaefoundation.org/grants/kennedy_school.shtml Third Wave Foundation - Organizing & Advocacy Grant The Organizing and Advocacy Fund of the Third Wave Foundation financially supports organizing and activism work that exists to challenge sexism, racism, homophobia, economic injustice, and other forms of oppression. We provide grants for both specific projects and general operating support. For detailed information go to: http://www.thirdwavefoundation.org/programs/advocacy.html Open Society Institute - Baltimore Community Fellowships A program of the Open Society Institute, the Baltimore Community Fellowships Program is accepting applications for the eighth round of its Community Fellowships, which will provide up to ten awards to individuals who wish to work in Baltimore City in public or community service. The Community Fellowships Program was established to assist individuals wishing to apply their educational and professional attainments in service to disadvantaged communities. In 2005, up to ten Community Fellowships will be awarded for work in Baltimore City . Applicants may either apply for a fellowship to work at a nonprofit organization; or apply for a fellowship to start a project. In cases where the fellowship takes place at an organization, applicants must secure sponsorship from the host organization. Fellowship awards are in the amount of $48,750 for a term of eighteen months. Other entities, including the host organization, may augment the stipend. The host organization is expected to provide medical benefits, space, and overhead costs as necessary. For detailed information go to: http://www.soros.org/initiatives/baltimore/initiatives/baltimore/focus_areas/community_fellowship/guidelines The Dave Thomas Foundation for Adoption The Dave Thomas Foundation for Adoption supports regional and national programs and projects that promote the adoption of waiting children in the United States and Canada . The Foundation is particularly interested in supporting organizations that function under the belief that all children are adoptable, regardless of their age, minority status, size of sibling group, or emotional or physical challenges. For detailed information go to: http://www.davethomasfoundationforadoption.org/html/grants/guidelines.asp Ewing Marion Kauffman Foundation They work in partnership with organizations that share their vision and passion for education and entrepreneurship. They look for ways to advance promising national programs and to leverage additional funding and resources in these two areas of interest. They work with partners by providing funding, consultation and technical assistance. They invest in organizations and programs only in these two areas of interest. For detailed information go to: http://www.kauffman.org/grants.cfm/fundingguidelines Leeway Foundation The Leeway Foundation, which supports individual women artists, arts programs, and arts organizations in the Greater Philadelphia region, has announced the Leeway Transformation Award and the Art and ChangeGrant, two new funding programs designed to celebrate the power and vision of women artists creating change in the Philadelphia area. Annual Transformation Awards of $15,000 will be presented to women artists in the five-county Philadelphia region (Bucks, Chester, Delaware, Montgomery, or Philadelphia counties) whose art engages in change and has an impact on the artist herself or a larger group, audience, or community; represents artistic excellence; and demonstrates continued growth and commitment. Women artists in the Philadelphia area who work for change are invited to apply. The award is unrestricted and open to women working in any art form, traditional or non-traditional. The application is a two-stage process: Stage 1 is open to all eligible women artists. After a review of applications, selected artists will receive invitations to apply to Stage 2. (Deadline for Stage 1 is April 6, 2005.) Art and Change Grants provide immediate, short-term grants of up to $2,500 to women artists in the Philadelphia region who need financial assistance to take advantage of opportunities for art and change. The artist's opportunity for change must be supported by or be in collaboration with a Change Partner — a person, organization, or business that is providing the opportunity or is a part of the opportunity in some way. Eligible Change Partners include mentors, editors, galleries, community art spaces, theaters, nonprofit organizations, film studios, and clubs. (Art and Change Grant Deadlines: April 11, June 20, and October 31, 2005.) The foundation's grant programs seek to include artists and work that might otherwise be overlooked, including art by women of color, immigrant women, queer women, transgender women, poor and working-class women, and women who take risks with art form and content. For detailed information go to: http://www.leeway.org/html/intro.html Mattel - Domestic Grants Program Mattel and the Mattel Children's Foundation have announced the launch of a new Domestic Grants Program. The program will accept grant applications from charitable organizations throughout the United States that directly serve children in need. Grant awards will range between $5,000 and $25,000, depending on program, organization, and individual community need. Funding priority is given to organizations or programs that creatively address a locally defined need directly impacting children in need and that align with Mattel's philanthropic priorities, which include health, education, and girls empowerment. Pilot projects and new organizations may be considered as long as all eligibility criteria are met; however, preference will be given to organizations that have at least two years' experience. Preference is given to organizations that have an annual operating budget of less than $1 million and are not affiliated with a national organization. For detailed information go to: http://www.mattel.com/about_us/Comm_Involvement/ci_mcf_philanthropy_grantmaking.asp American Geriatrics Society - Education for Specialty Residents Program The American Geriatrics Society, in keeping with its efforts to help develop leaders in the geriatrics aspects of their disciplines, is seeking proposals for the Geriatrics Education for Specialty Residents (GESR) component of its Increasing Expertise in Geriatrics for Surgical and Related Medical Specialties project. The program, which is funded by the John A. Hartford Foundation, addresses the urgent need to create a structure for developing leaders in geriatrics in academic surgery and related medical specialties. The GESR program allows interested specialists to work in collaboration with the geriatrics program in their institution, thereby enhancing their knowledge and skills in teaching geriatrics principles to specialist residents. For detailed information go to: http://www.americangeriatrics.org/2005_GESR.shtml NASD - Investor Education for the Nation's Young Adults The NASD Investor Education Foundation, established in 2003 by NASD, supports educational programs and research with the goal of providing investors with high-quality, easily accessible information and tools to better understand investing and the markets. The foundation invites eligible organizations to submit grant proposals for research projects and/or educational programs that empower young adults, ages 18-24, who are about to enter the workforce to better prepare for their initial investment decisions and investing goals, including retirement. Successful proposals will include a literature search, surveys or focus groups of young people who are about to enter the workforce in order to identify potential "teachable moments" for investor education. Reports and executive summaries must offer conclusions and recommendations for solutions including educational materials that will assist this audience in identifying and implementing steps to avoid investing pitfalls and toward achieving basic retirement security. The resulting solution, educational project or program must be easily transferable and replicable. Proposals must include a detailed distribution and marketing plan demonstrating national reach. Preference will be given to proposals that expand or leverage existing programs or materials. For detailed information go to: http://www.nasdfoundation.org/youth.asp Radical Renovation: School Edition initiative Ford Motor Company has joined with National Geographic to create the Radical Renovation: School Edition initiative, a new program that asks elementary school students how they would make their school more environmentally friendly. Teachers across the United States are encouraged to submit their students' vision of a sustainable, eco-friendly school for a chance to win $100,000 for eco-renovations. For detailed information go to: http://www.nationalgeographic.com/gogreen/ford/ Federal Grant Opportunities (if any of the following grants sound appealing, please contact Mourene Tesler to learn more about the application procedure - mourene@richardmale.com) ------------------------------- William F. Goodling Even Start Family Literacy Programs--Grants for Indian Tribes and Tribal Organizations Closing Date: April 11, 2005 Amount: $4,975,000 Estimated Range of Awards : $150,000-$250,000 per year Estimated Average Size of Awards: $200,000 per year Estimated Number of Awards: 20-33 Eligible Applicants: Federally recognized Indian tribes and tribal organizations. Applicable definitions of the terms ``Indian tribe'' and ``tribal organization'' are in section 4 of the Indian Self-Determination and Education Assistance Act, 25 U.S.C. 450b. Agency/Department: DEPARTMENT OF EDUCATION SUMMARY: The William F. Goodling Even Start Family Literacy Programs (Even Start), including the grants for Indian tribes and tribal organizations, are intended to help break the cycle of poverty and illiteracy by improving the educational opportunities of low-income families by integrating early childhood education, adult literacy or adult basic education, and parenting education into a unified family literacy program. These programs are implemented through cooperative activities that: build on high-quality existing community resources to create a new range of educational services for most-in-need families; promote the academic achievement of children and adults; assist children from low-income families to meet challenging State content and student achievement standards; and use instructional programs that are based on scientifically based reading research and on the prevention of reading difficulties for children and adults, to the extent such research is available. A description of the required fifteen program elements for which funds must be used is included in the application package. Listed in: Federal Register: February 17, 2005 Volume 70, Number 32 Page 8085-8089 For detailed information go to: http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/E5-657.htm
----------------------------------------------------------- Other Announcements Secondary Trauma Resiliency Training for those working in poverty and homelessness, presented by the HealthBridge Alliance. This innovative and interactive experience trains caregivers in skills to cope with the personal stresses of their work to reduce burnout and turnover. April 19-21 at the Foss Conference Center in the foothills of Jefferson County. The normal cost of the training is $340, but we are offering this training for the special low-rate of only $35 per person. Please contact Dace West at (720) 934-1066 or daceschlue@aol.com for more information. ------------------------------------------------------------------------------------------ *Feel free to forward this email to a friend. **To unsubscribe to this newsletter, please send an email with the words "Unsubscribe Rich Tips" in the subject line to nicolle@richardmale.com . ***To subscribe, please send an email with the words "Subscribe Rich Tips" in the subject line to nicolle@richardmale.com .
|
|||