Blog
Insights, guides, and practical advice for nonprofit founders and leaders.
Can a Nonprofit Lobby? The 501(h) Election Explained
Nonprofits can lobby — the law limits how much, not whether. Here's the difference between the vague default test and the 501(h) election that replaces it with a number.
Read more →Excess Business Holdings: Can a Private Foundation Own a Business?
IRC §4943 caps what a foundation and its family can own of any business at 20%. What counts, how long you have to fix it, and the four exceptions that actually matter.
Read more →Nonprofit Board Member Personal Liability: When You're Actually at Risk
Board members are rarely on the hook personally — but the exceptions are specific and predictable. Here's what actually creates personal liability, why volunteer immunity laws protect less than people think, and how indemnification and D&O insurance fit together.
Read more →Fiscal Sponsorship vs. Starting Your Own Nonprofit: How to Decide
Fiscal sponsorship lets you accept tax-deductible donations under an existing 501(c)(3) without forming your own. Here's how the two real models differ, why the sponsor must legally be able to redirect your money, what the 5–15% fee actually buys, and how to plan your exit before you sign.
Read more →Unrelated Business Income Tax: When Your Nonprofit Owes Tax on Its Revenue
Tax-exempt doesn't mean tax-free. If your nonprofit earns revenue from activities that aren't substantially related to its mission, you may owe unrelated business income tax at 21% and file Form 990-T. Here's the three-part test, the exceptions that save most organizations, and the sponsorship line nearly everyone crosses.
Read more →How to Set Up a Private Foundation Scholarship Program
Private foundations can award scholarships, but only with IRS-approved procedures in place first. Here's the step-by-step process — from designing your program to getting IRS approval to managing ongoing compliance — so your foundation can fund individuals without triggering excise taxes.
Read more →How to Remove a Nonprofit Board Member (Without Creating a Legal Mess)
Removing a board member who isn't fulfilling their duties or is actively harming the organization requires following your bylaws precisely. Here's how to handle the process — from documented cause through a valid vote — and what to do when things get complicated.
Read more →Nonprofit Founder Salary: Can You Pay Yourself, and How Much?
Yes, nonprofit founders can be paid a salary — the rules require it to be reasonable, board-approved, and documented. Here's how the IRS evaluates founder pay, the three-step safe harbor that protects you, and the penalties for getting it wrong.
Read more →How to Close a Private Foundation Without Paying the Termination Tax
There are four ways to close a private foundation — and only one of them triggers the termination tax. Here's how to wind down cleanly: the §507 options, the final 990-PF, and the mistakes to avoid.
Read more →Amending Nonprofit Articles of Incorporation: State + IRS
Who approves the amendment, what you file with the state, the typical $10–$125 fee, and how the IRS finds out — on your next Form 990, not a new Form 1023.
Read more →Nonprofit Board Diversity: How to Build a Board That Reflects Your Mission
Board diversity isn't a statement — it's a governance capability. Here's the practical playbook: audit your composition, fix the recruitment pipeline that keeps producing the same board, and build a culture where new perspectives actually change decisions.
Read more →The Board's Role in Nonprofit Strategic Planning: What to Own and What to Delegate
Strategic planning fails when the board either takes over the whole process or checks out entirely. Here's the practical division of labor that produces a plan your organization actually uses.
Read more →Corporate Foundation: How to Set One Up (and When To)
A company-funded foundation inherits every private foundation rule. Setup: $50–$200 state fees plus a $600 IRS fee. It earns its keep above $100k a year.
Read more →Nonprofit Mergers: A Practical Guide to Merging Two Nonprofits
A nonprofit merger isn't a failure — it's a governance decision. How the two legal paths work, the approvals you'll need, and what makes mergers succeed.
Read more →How to Evaluate Your Executive Director: A Board's Practical Guide
How a working board runs a real executive director evaluation — one that improves performance, protects the organization, and holds up on compensation.
Read more →International Grantmaking from a Private Foundation (2026)
Private foundations can fund foreign charities two ways: equivalency determination or expenditure responsibility. How each path works and which one to use.
Read more →Impact Investing for Private Foundations: PRIs vs. MRIs
Program-related and mission-related investments are taxed very differently. How each works, which counts toward your 5% payout, and where foundations trip up.
Read more →509(a)(1) vs. 509(a)(2): Which Public Support Test Applies?
Both public support tests prove your nonprofit isn't a private foundation — but they count money differently. How to tell which test fits before you file.
Read more →The Board's Role in Fundraising: What Directors Actually Owe
The board's role in fundraising, in practice: what directors actually owe, how to set a give-or-get expectation, and how to engage a reluctant board.
Read more →Nonprofit Multi-State Compliance: Triggers and Filings
Hiring or fundraising across state lines can trigger registration in 41 states plus DC. The four filings it creates, what they cost, how to stay current.
Read more →Bookkeeping for Nonprofits: How to Set Up Your Books Right
Bookkeeping for nonprofits is different — fund accounting, functional expenses, restricted revenue. How to set up your books right from day one.
Read more →Nonprofit Board Term Limits: How Long Should Members Serve?
Term limits keep a board fresh and force turnover. How to set board terms and limits, what to put in your bylaws, and reset a board that never turns over.
Read more →Private Foundation: Corporation vs. Trust — How to Choose
A private foundation is built as a nonprofit corporation or a charitable trust. How the two differ on governance, flexibility, and changing course later.
Read more →How to Dissolve a Nonprofit: A Step-by-Step Guide
Closing a nonprofit is more than filing a form and walking away. Here's the actual dissolution process — board approval, asset distribution, state filings, and the final Form 990 — done in the right order.
Read more →Family Foundation Succession Planning: A Practical Guide
How to plan succession for a family foundation — governance transitions, preparing the next generation, board structure, and the documents that make a handoff work.
Read more →Nonprofit Board Meeting Agenda: Put Decisions First
A board meeting agenda built on reports produces a meeting about reports. The template that puts decisions first, plus consent agendas and minutes.
Read more →Jeopardizing Investments (§4944): What a Private Foundation Can't Invest In
IRC §4944 doesn't ban any specific asset class — it bans imprudent decisions. What the prudent investor standard actually means for a private foundation, which investments get scrutinized, and how to document your way out of a penalty.
Read more →Nonprofit Budgeting Basics: Build a Budget Boards Use
How to build a nonprofit budget the board will adopt: restricted vs. unrestricted revenue, functional expenses, a 3–6 month reserve, and lumpy income.
Read more →Nonprofit Board Committees: Which Ones You Actually Need
Most small boards need two standing committees: finance and governance (the nominating committee). Which to keep, which to drop, when to use a task force.
Read more →Nonprofit Executive Succession Planning: A Board's Guide
Three plans your board needs before the ED leaves: a two-page emergency plan, a planned-departure process, and leadership development — two hours a year.
Read more →Nonprofit Board Self-Assessment That Changes Behavior
Measure composition, structure, performance, and culture separately — a composite score is unactionable. Design, cadence, and turning findings into change.
Read more →501(c)(3) Revoked? The 4 Reinstatement Paths (2026)
Automatic revocation leaves four ways back, and only some restore exemption retroactively. How to pick a path, the $275 or $600 fee, and how long it takes.
Read more →What Operating Policies Does a Nonprofit Need? (2026 Checklist)
Beyond bylaws, every 501(c)(3) needs a working set of operating policies. Here's the full checklist — what the IRS asks about, what protects your board, and what you can skip.
Read more →Private Foundation vs. Public Charity: How to Choose the Right 501(c)(3) Structure
Both are 501(c)(3)s, but they operate under different rules, attract different funding, and impose very different administrative loads. Here's how to pick the structure that fits your charitable vision — before you file.
Read more →Nonprofit Board Orientation: A 90-Day Onboarding Plan
Board orientation is not a welcome packet. The three conversations, the document stack, and a 90-day plan that turns a new director into a contributor.
Read more →Nonprofit Board Recruitment: How to Find Members Who Will Actually Govern
Board recruitment is more than filling seats. Here's how to build a board profile, source candidates beyond your inner circle, vet them honestly, and run the recruitment conversation so the people who say yes are the people you actually want.
Read more →How to Start a Private Foundation: Cost and Steps (2026)
Setting up a charitable foundation: the $600 IRS filing, a 6–12 month timeline, and the ~$1M asset floor where a foundation beats a donor-advised fund.
Read more →Donor-Advised Fund vs. Private Foundation: How to Choose
A donor-advised fund is cheaper and private; a private foundation gives you control, staff, and a legacy. How the two compare on tax, cost, and control.
Read more →Nonprofit Conflict of Interest Policy: IRS Rules (2026)
IRS Form 1023 and Form 990 both ask about it. What your policy must include, how annual disclosures work, and the recusal steps that protect your board.
Read more →How to File Form 990: Public Charity Guide (2026)
Every 501(c)(3) public charity files Form 990 each year. Which version (990-N, EZ, or full), when it's due, and the mistakes that trigger IRS follow-up.
Read more →Expenditure Responsibility for Private Foundations (2026)
Private foundations can grant to non-501(c)(3) organizations — but only with expenditure responsibility under IRC §4945. The 5 required steps and common mistakes.
Read more →2–12 Months: How Long It Takes to Start a Nonprofit
Form 1023-EZ clears in 2–6 weeks; the full Form 1023 takes 3–6 months. A week-by-week timeline of all seven steps, and where delays come from.
Read more →How to Make Grants from a Private Foundation (2026)
A practical guide to private foundation grantmaking: verifying grantees, structuring agreements, due diligence, and meeting your 5% distribution requirement.
Read more →What to Include in Nonprofit Bylaws (And What Most Organizations Get Wrong)
Your nonprofit bylaws are the operating manual your board actually has to follow. Here's what they should include — officer roles, meeting requirements, conflict of interest procedures, amendment processes — and the common mistakes that create real problems down the road.
Read more →Form 990-PF Filing Guide: Due Dates & Penalties (2026)
Section-by-section 990-PF walkthrough for private foundations: the May 15 deadline, 1.39% excise tax, and the common mistakes that trigger IRS scrutiny.
Read more →Private Foundation Excise Tax (§4940): 2026 Guide
Every private foundation owes a 1.39% excise tax on investment income under IRC §4940. How the calculation works, what's deductible, and how to reduce it.
Read more →10 Compliance Obligations Nonprofits Miss
Most nonprofits know about the Form 990. Fewer know about the 10 other requirements — from charitable solicitation to document retention and lobbying limits.
Read more →Private Foundation Self-Dealing Rules: The 2026 Guide
IRC §4941 prohibits nearly all transactions between a foundation and its insiders — no fair-market-value exception. Penalties run 10%–200%. Plain-English guide.
Read more →New to a Nonprofit Board? What You Need to Know (2026)
Joining a nonprofit board comes with real legal duties — care, loyalty, and obedience. How to read financials, spot red flags, and protect yourself as a fiduciary.
Read more →10 Nonprofit Board Warning Signs (2026)
Rubber-stamping, missing oversight, founder dominance — 10 warning signs your board isn't functioning and when to bring in outside help.
Read more →Private Foundation 5% Distribution Rule + 30% Tax (2026)
Private foundations must distribute 5% of net investment assets yearly or owe a 30% excise tax. How the calculation works, what qualifies, common mistakes.
Read more →Nonprofit Formation: DIY vs. Hire a Pro (2026 Guide)
Decide phase by phase: EIN and state filing you can DIY; the 501(c)(3) application is usually worth hiring out. A practical 2026 guide for nonprofit founders.
Read more →How to Build a Nonprofit Board That Actually Governs (Not Just Fills Seats)
Most nonprofit boards start as a formality — friends and family filling seats for the 501(c)(3) application. Here's how to build one that works: ideal board size, staggered terms, officer roles, committee structure, and a recruitment strategy that finds people who show up and contribute.
Read more →Inherited a Foundation: 90-Day Action Plan
Your 90-day action plan for an inherited private foundation. Covers the 5% distribution rule, self-dealing traps, 990-PF filing, and quarterly taxes.
Read more →Nonprofit Board Responsibilities: 3 Fiduciary Duties (2026)
Nonprofit board members owe three fiduciary duties — care, loyalty, and obedience — and can be personally liable for breaching them. What each duty means day-to-day and how to stay protected.
Read more →What's the Difference Between a Nonprofit and a 501(c)(3)?
A nonprofit is a state-level corporation organized for non-profit purposes. A 501(c)(3) is federal tax-exempt status from the IRS. You need both — state incorporation comes first, then the IRS application. Here's why the distinction matters for fundraising, grants, credibility, and state tax exemptions.
Read more →Private Foundation Annual Compliance Checklist (2026)
Form 990-PF, 1.39% excise tax, 5% distribution, board meetings, IPS review, COI disclosures, grantee verification — every annual task with its deadline.
Read more →Nonprofit Governance Review Guide (2026)
A governance review examines your documents, compliance, finances, and board practices for gaps. What it covers, what it costs ($1,000+), and who needs one.
Read more →Form 1023 vs. 1023-EZ (2026): Fees, Speed, Eligibility
Form 1023-EZ ($275, 2–4 weeks) requires under $50K projected revenue. Form 1023 ($600, 4–12 months) covers everyone else. See which fits your nonprofit.
Read more →Do You Need a Lawyer to Start a Nonprofit?
You can DIY the EIN (free), basic incorporation ($25–$150), and standard bylaws. A lawyer adds value for complex state filings ($200–$500), Form 1023 applications ($300–$1,000), unusual governance structures, and multi-state operations. Here's exactly when legal help is worth it and when it's not.
Read more →How Much Does It Cost to Start a Nonprofit? $300–$1,250
DIY formation runs $300–$1,250: state filing ($25–$150), a free EIN, and the $275 or $600 IRS application. With professional help, $1,725–$5,700+.
Read more →Nonprofit Board of Directors Requirements (2026)
How many board members does a 501(c)(3) need? Most states require 3+ directors plus a president, secretary, and treasurer. State rules and term limits inside.
Read more →Charitable Solicitation Registration: 41-State Guide (2026)
41 states require nonprofits to register before soliciting donations. Who must register, who's exempt, 2026 fees ($0–$400), and renewal deadlines.
Read more →How to Start a 501(c)(3): A Step-by-Step Guide
Eight steps from idea to IRS determination letter: validate your mission, incorporate in your state ($25–$150), get an EIN (free), draft bylaws, hold your organizational meeting, file Form 1023 or 1023-EZ ($275–$600), complete state registrations, and set up compliance systems.
Read more →5 Compliance Mistakes New Nonprofits Make
Miss your Form 990 for three years and the IRS automatically revokes your tax-exempt status. Skip board minutes, state filings, or essential policies and you're creating liability. Here are the 5 most common compliance mistakes new nonprofits make — and exactly how to avoid each one.
Read more →Do You Need a Nonprofit? Alternatives to Starting a 501(c)(3)
A 501(c)(3) isn't always right. Fiscal sponsorship (5–15% fee), an LLC, or a benefit corporation may fit better. How to decide before you incorporate.
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