Blog
Insights, guides, and practical advice for nonprofit founders and leaders.
How to Make Grants from a Private Foundation: Rules, Process, and Due Diligence
Private foundation grantmaking isn't just writing checks — it comes with IRS rules, due diligence requirements, and expenditure responsibility obligations. Here's a practical guide to making grants the right way, from verifying grantees to structuring grant agreements 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 Guide: What Private Foundations Need to File (and What the IRS Is Really Looking For)
Form 990-PF is the annual tax return every private foundation must file — and it's far more complex than a standard nonprofit 990. Here's a practical walkthrough of what each section requires, common mistakes that trigger audits, and how to stay compliant without overpaying your accountant.
Read more →Private Foundation Excise Tax on Investment Income: What You Owe and How to Reduce It
Every private foundation owes an annual excise tax on net investment income under IRC §4940. Here's how the 1.39% tax works, what counts as investment income, what expenses you can deduct, and practical strategies to minimize what you owe.
Read more →The Hidden Compliance Obligations Most Nonprofits Miss
Beyond the Form 990 and state registration, there are 10 compliance obligations most nonprofits miss: charitable solicitation registration, state annual reports, employment compliance, document retention, conflict of interest enforcement, board minutes, 990 disclosure, lobbying limits, UBIT, and D&O insurance.
Read more →Private Foundation Self-Dealing Rules: What You Can't Do (and the Penalties If You Do)
Self-dealing rules prohibit virtually all transactions between a private foundation and its insiders — no exceptions for small amounts, fair market value, or good intentions. Penalties start at 10% and escalate to 200%. Here's what counts as self-dealing, who's a disqualified person, and how to stay compliant.
Read more →What Every New Nonprofit Board Member Should Know
Joining a nonprofit board? You're now a fiduciary with real legal duties — duty of care, duty of loyalty, and duty of obedience. Here's what that means, what to expect at your first meeting, how to read financial statements, and what red flags to watch for.
Read more →How to Know If Your Nonprofit Board Is Functioning Properly
Rubber-stamping decisions, missing financial oversight, high turnover, founder dominance — ten warning signs your nonprofit board isn't functioning properly, with quick fixes, moderate interventions, and when to bring in outside help.
Read more →The Private Foundation 5% Distribution Requirement, Explained
Every private foundation must distribute at least 5% of its net investment assets each year for charitable purposes — or face a 30% excise tax on the shortfall. This rule catches more foundation inheritors off guard than almost any other compliance obligation. Here's how the calculation works, what counts as a qualifying distribution, common mistakes to avoid, and how to build a payout strategy that keeps you compliant without draining the endowment.
Read more →Nonprofit Formation: What You Can Do Yourself vs. When to Hire Help
An honest phase-by-phase breakdown of nonprofit formation: mission development (easy DIY), state incorporation ($25–$150), EIN (free, 10 minutes), bylaws (moderate), the 501(c)(3) application ($275–$600 and the hardest part), state compliance, and board development. Here's where to save money and where professional help pays for itself.
Read more →How to Build a Nonprofit Board: Recruitment, Structure & Best Practices
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 actually governs: ideal board size, staggered terms, officer roles, committee structure, and a recruitment strategy that prioritizes skills over availability.
Read more →I Inherited a Private Foundation — Now What?
You've inherited a legal entity with 6 excise tax traps (self-dealing penalties start at 10%), a 5% annual distribution requirement, quarterly tax payments, and Form 990-PF filing obligations. Here's your first 90-day action plan and the ongoing responsibilities you need to understand.
Read more →Nonprofit Board Member Responsibilities: Duties, Expectations & Legal Liability
Nonprofit board members carry three fiduciary duties — care, loyalty, and obedience — with personal legal liability. Understand what's expected, how to fulfill your governance role, and the mistakes that put boards at risk.
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 →What Does a Private Foundation Need to Do Every Year? A Compliance Checklist
Every private foundation must file Form 990-PF annually, pay 1.39% excise tax on investment income quarterly, meet the 5% minimum distribution requirement, hold board meetings, review the investment policy, conduct conflict of interest disclosures, and verify grantee status. Here's the complete annual checklist with deadlines.
Read more →What Is a Nonprofit Governance Review? (And Does Your Organization Need One?)
A governance review examines five areas — governance documents, filing compliance, financial policies, board practices, and fundraising — to identify gaps before they become problems. Here's what it covers, who needs one, what it costs ($1,000–$15,000 depending on provider), and what to do with the results.
Read more →Form 1023 vs. 1023-EZ: Cost, Timeline & Which to File (2026)
Form 1023-EZ: $275, 2–4 weeks, limited to under $50K revenue. Form 1023: $600, 4–12 months, works for everyone. Side-by-side comparison with eligibility rules, common mistakes, and a decision framework to help you choose.
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?
DIY formation costs $300–$1,250 (state fees + IRS application). With professional help, expect $1,725–$5,700+. Here's every line item broken down: state filing ($25–$150), EIN (free), 501(c)(3) application ($275–$600), legal review, registered agents, and the hidden ongoing costs most founders miss.
Read more →Nonprofit Board of Directors Requirements: Structure, Roles & Legal Rules
Every nonprofit needs a board of directors, but requirements vary by state. Learn the minimum board size, required officer roles, fiduciary duties, committee structure, and the legal responsibilities that apply to 501(c)(3) boards.
Read more →Charitable Solicitation Registration: State-by-State Requirements for Nonprofits
41 states require nonprofits to register before fundraising — and penalties for skipping it include fines, cease-and-desist orders, and loss of tax-exempt status. Learn which states require registration, how to file, and the exemptions that might apply.
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 the right structure. Fiscal sponsorship lets you accept tax-deductible donations without incorporating. An LLC gives you more flexibility. A benefit corporation balances profit with purpose. Here's how to decide which structure fits your mission, funding model, and tolerance for overhead.
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