How to Maintain your Organizations Tax Exempt Status

Question: What should we do to maintain our organizations tax exempt status? Answer: Fortunately, it is not common for the IRS to actually revoke a nonprofit’s tax-exempt status. However, even if a nonprofit does not lose its tax-exempt status it may face stiff financial penalties the IRS refers to as “Intermediate Sanctions.” In order to… [Read More]

Avoiding the Taxation of Corporate Sponsorship Donations

Question: How can our organization avoid the Taxation of Corporate Sponsorship Donations? Answer: One effective way for a nonprofit to generate revenue is to pursue a corporate sponsorship wherein the sponsor makes cash or in kind donations in exchange for public awareness of its products. In order for these donations to remain tax-exempt, certain rules… [Read More]