These donor acknowledgment letter templates are intended for newly formed organizations that receive donations prior to getting approval of 501(c)(3) status, including an initial acknowledgment with an explanation of the organization’s pending status, and follow-up letters updating the donor once the organization’s tax-exempt status is official. The included sample language is intended to generally satisfy basic IRS requirements for the most common donation scenarios, including cash contributions, non-cash contributions, as well as cash and non-cash gifts that are treated as quid pro quo contributions. 

Ben and Mike answer questions from subscribers about documenting Executive Director performance in committee minutes, whether tax-exempt status can be transferred to another organization, addressing audit findings related to handling of restricted funds, how new nonprofits should fill out Form W-9, and whether new nonprofits should file a Form 990 for the first short tax year.

Ben and Mike answer questions from subscribers about best practices in structuring and approving executive bonuses, updating cost allocation methods and the importance of time sheets, cash management for organizations with healthy operating reserves, and managing the costs of insurance.

This template provides a framework for drafting unanimous written consent resolutions in lieu of a Board of Directors meeting. This template is intended for situations in which Board action on a matter is necessary, and taking action through unanimous written approval would be more timely, practical, and/or feasible than waiting until the Board meeting is convened.

Nonprofit organizations rely heavily on their finance department staff. Their services are critical to day-to-day operations and essential to safeguarding and stewarding the allocation of financial assets to meet the mission of the organization. Investing in improving and increasing finance department staff skills, capacity, and professional development are actions that “speak louder than words,” and will improve operations and performance while demonstrating a culture of staff appreciation.

Ben and Mike answer questions from subscribers about converting from 501(c)(4) to 501(c)(3) status, communicating the financial condition of an organization with significant restricted funds on the balance sheet, how much unrelated business income tax (UBIT) is too much, and considerations when opening a bank account in a foreign country outside of the United States.

Ben and Mike discuss the private benefit rule that applies to 501(c)(3) organizations, addressing how the private benefit rule is broader than the private inurement and excess benefit transaction rules, examples of how the private benefit rule applies to specific programs, how to assess whether private benefit is "incidental,” and more.