Regulation of Nonprofit Organizations

THE ATTORNEY GENERAL IS RESPONSIBLE FOR THE REGULATION OF NONPROFIT ORGANIZATIONS The California Attorney General is responsible for the regulation of nonprofit organizations for public policy reasons.  The Attorney General represents all the public beneficiaries of charity, who cannot sue in their own right.  Therefore, all charities must register with the Attorney General and the Attorney General’s Registry of Charitable Trusts maintains public files and financial reports for all charities registered in California.  The Attorney General has the power to oversee the operations of Public Benefit Corporations. The Attorney General’s Charitable Trust Section has investigative audit powers and may bring [...]

Regulation of Nonprofit Organizations2020-03-22T12:59:08-07:00

Nonprofit Public Benefit Corporation

WHAT ARE MEMBERS OF THE NONPROFIT PUBLIC BENEFIT CORPORATION? Membership for a Nonprofit Public Benefit Corporation is optional.  The reasons for providing membership in a nonprofit include: (1) Attract funds through membership, or (2) Establish support in the community.  However, many administrative burdens are associated with forming a membership organization and it is more common for a nonprofit to not have members.   If the nonprofit includes membership, the Bylaws must address the controlling provisions for membership such as qualifications, method of selection, expulsion, dues and fees, notice and frequency of meetings, the number required for a quorum to make decisions, [...]

Nonprofit Public Benefit Corporation2020-03-20T22:42:39-07:00

Can A Nonprofit Organization Be Taxed?

CAN A NONPROFIT ORGANIZATION BE TAXED ON UNRELATED BUSINESS INCOME? Nonprofit organization often retain an Attorney to provide an opinion on whether the corporation will be engaging in unrelated business activities that may be taxable.   To note, the activities of a nonprofit organization can still be considered charitable even though they generate profits. However, the primary purpose must be charitable and not income generation.  A for-profit business generates income on a regular basis; whereas, a non-profit organization engages in fundraising not on a regular basis. Factors that are considered in determining if the organization is charitable include:  How the income [...]

Can A Nonprofit Organization Be Taxed?2020-03-13T22:11:14-07:00