Nonprofit Law and Governance For Dummies

Overview

As the number and size of nonprofit organizations continues to grow, NFPs are coming under ever-increasing government scrutiny. Soon Congress will require that nonprofits comply with rigorous accounting and governance standards very similar to those set forth for for-profits in the Sarbanes-Oxley Act.

If you work for a nonprofit and are concerned about meeting impending changes to tax and finance standards governing NFPs this book is for you. In simple, straight-forward language, this guide demystifies the often perplexing world of nonprofit governance in the age of Sarbanes-Oxley. Author, Jill Gilbert Welytok, an attorney who heads the Sarbanes-Oxley division of a major Midwest law firm, walks you step-by-step through the process of evaluating your governance structures. She arms you with

tips and strategies for adopting uniform standards under current governance and tax laws, while preparing you for any upcoming changes. She shows you how to protect your tax status and reassure donors and volunteers while staying true to your organization’s mission. And she fills you in on what you need to know to:

  • Comply with state laws and regulations
  • Get and keep tax–exempt status
  • Avoid lawsuits and other legal landmines
  • Handle the media
  • Anticipate future trends
  • Make sense of the Sarbanes–Oxley act

Including sample nonprofit bylaws and a complete audit committee report, Nonprofit Law & Governance for Dummies, Second Edition is an indispensable survival tool for 21st century nonprofits.

Read More

About The Author

Jill Gilbert Welytok, JD, CPA, LLM, practices in the areas of corporate law, nonprofit law, and intellectual property. She is the founder of Absolute Technology Law Group, LLC (www.abtechlaw.com). She went to law school at DePaul University in Chicago, where she was on the Law Review, and picked up a Masters Degree in Computer Science from Marquette University in Wisconsin where she now lives. Ms. Welytok also has an LLM in Taxation from DePaul. She was formerly a tax consultant with the predecessor firm to Ernst & Young. She frequently speaks on nonprofit, corporate governance–taxation issues and will probably come to speak to your company or organization if you invite her. You may e-mail her with questions you have about Sarbanes-Oxley or anything else in this book at [email protected]. You can find updates to this book and ongoing information about SOX developments at the author’s website located at www.abtechlaw.com.  

Daniel S. Welytok, JD, LLM, is a partner in the business practice group of Whyte Hirschboeck Dudek S.C., where he concentrates in the areas of taxation and business law. Dan advises clients on strategic planning, federal and state tax issues, transactional matters, and employee benefits. He represents clients before the IRS and state taxing authorities concerning audits, tax controversies, and offers in compromise. He has served in various leadership roles in the American Bar Association and as Great Lakes Area liaison with the IRS. He can be reached at [email protected].

US Senator Chuck Grassley currently serves as the president pro tempore emeritus of the United States Senate. He is the senior US senator from Iowa and has held the seat since 1981. Grassley has chaired both the Senate Finance Committee and the Senate Judiciary Committee.

Sample Chapters

nonprofit law and governance for dummies

CHEAT SHEET

If you're forming a nonprofit, it's important to start from a well-informed base. These basic start-up guidelines can get your organization up and running smoothly, and being aware of current tax and finance standards can help your nonprofit avoid legal pitfalls.

HAVE THIS BOOK?

Articles from
the book

Issues of executive compensation and governance are closely intertwined thanks to the influence of the Sarbanes-Oxley Act (SOX). The IRS is always concerned as to whether governing boards of nonprofit organizations exercise a sufficient degree of due diligence in setting the compensation for leaders of their organizations.
An organization's board of directors is responsible for forming committees when necessary. Committee members must be drawn from the current members of the board itself, so having a talented and diverse board is an extremely important ingredient to the success of an organization. The board's power to form committees is usually addressed in the organization's bylaws.
Non-profit organizations are generally tax-exempt and don't need to file revenue forms, but the Internal Revenue Service still requires lots of information — all to be painfully extracted and meticulously organized on IRS Form 990. Not every tax form requires a payment of tax. Sometimes information is what the IRS is after.
If you're forming a nonprofit, it's important to start from a well-informed base. These basic start-up guidelines can get your organization up and running smoothly, and being aware of current tax and finance standards can help your nonprofit avoid legal pitfalls.
Don't assume that since the federal government doesn't tax most nonprofit income that it doesn't require nonprofits to comply with tax-reporting requirements. Just like for-profit businesses, nonprofits need to report income, file tax returns, and file documentation to make certain their special status isn't being used to the benefit of private individuals or to further non-exempt purposes.
To ensure the success of your nonprofit organization, you need to start with a solid foundation. Take a look at the following fundamentals checklist so your nonprofit is set up properly and legal issues are covered right from the beginning. Clearly define your mission and its scope: Every nonprofit has a mission.
U.S. nonprofit organizations are entering an era of the most intense federal and state regulation in history. After cracking down on corporate America by enacting the Sarbanes-Oxley Act (SOX) in 2002, lawmakers and enforcement officials are now setting their sights on the country's 1.8 million nonprofits. Many provisions in the Pension Protection Act of 2006 are a direct response to high-profile scandals in the nonprofit sector.
It's a sad fact of life that volunteer directors of nonprofits run the risk of being sued in the course of carrying out duties for which they aren't paid. Fortunately, many states realize the importance of philanthropy and volunteerism and have adopted laws to protect directors from lawsuits when they're acting on behalf of the organization and within the scope of their authority.
https://cdn.prod.website-files.com/6630d85d73068bc09c7c436c/69195ee32d5c606051d9f433_4.%20All%20For%20You.mp3

Frequently Asked Questions

No items found.