When is Unrelated Business Income Taxable?

May 28, 2014 by

If your nonprofit engages in inactivity unrelated to its exempt purpose, you may have Unrelated Business Income that is taxable. Unrelated Business Income is the income from a trade or business regularly conducted by an exempt organization and not substantially related to the performance by the organization of its exempt purpose or function, except that… [Read More]

Filed Under: Nonprofit Organizations, UBIT/ Unrelated Business Income Tagged With: , , , , , ,

Why is a 501(h) election important to nonprofits engaged in lobbying?

May 20, 2014 by

Many nonprofits are under the impression that lobbying is forbidden or severely restricted, but that is not entirely the case. The fact is that nonprofits need to be very careful about blindly engaging in lobbying activity, but they may freely engage in lobbying as long as that activity amounts to only an “insubstantial” amount of the… [Read More]

Filed Under: Nonprofit Lobbying Tagged With: , , , , ,

Can I use federal grant money to fund lobbying efforts of my nonprofit?

May 20, 2014 by

Question. Can I use federal grant money to fund lobbying efforts of my Nonprofit? Answer: No, nonprofits that receive federal funds may not use funds received by the nonprofit as a result of a contract or grant to attempt to influence any federal or state legislation, through direct or grass roots lobbying campaigns.  See OMB Circular… [Read More]

Filed Under: Fundraising, Nonprofit Organizations Tagged With: , , , , , ,

Can my Nonprofit hold Raffle to Raise Money?

May 8, 2014 by

Question: Can my Nonprofit hold Raffle to Raise Money? The Charitable Raffle Enabling Act, effective January 1, 1990, permits “qualified organizations” to hold up to two raffles per calendar year, with certain specified restrictions. Answer: A raffle is defined as the award of one or more prizes by chance at a single occasion among a single pool… [Read More]

Filed Under: Fundraising, Nonprofit Organizations Tagged With: , , , , ,

Can my Nonprofit hold a Poker Tournament or Casino Night Fundraiser?

May 8, 2014 by

Question: Can my Nonprofit hold a Poker Tournament or Casino Night Fundraiser? Answer: Unlike raffles and bingo, there is NO exception to the gambling law in Texas for nonprofits to hold poker or casino night fundraising events. The gambling law, Chapter 47 of the Penal Code, applies to nonprofits and to for profits equally. See Tex…. [Read More]

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