Emergency Assistance Foundation, Inc. - Tax & Legal Issues Archives

States Increasingly Say That All Revenue Sources Constitute a Solicitation

Nonprofit compliance can be complicated business.  That’s been true for as long as there has been a Section 501(c)(3) in the US tax code.  That complexity has only gotten more burdensome since the states have stepped up their solicitation registration requirements and enforcement […]

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Donors Have Rights To

February 24, 2018
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Before you donate to a non-profit, have you thought about what your rights are?

Over 25 years ago, the American Association of Fund-Raising Counsel (AAFRC), Association for Healthcare Philanthropy (AHP), Council for Advancement and Support of Education (CASE), and the Association of Fundraising Professionals (AFP), adopted […]

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Waiting Periods Inappropriate for Employee Relief Funds

A common, but mistaken, idea for employee disaster and hardship relief funds is to have an eligibility waiting period. In practice, this requirement would work by limiting applicants for grants only to those who have worked for the fund-sponsor for a certain time period. Most often, the […]

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Expanding Relief Fund Grant Eligibility Past Traditional Employees

September 27, 2017
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Occasionally, an employer proposes including some group other than current employees in their disaster and hardship relief fund. On its face, this makes the charitable class broader than it would otherwise be. Remember that there is no requirement that an employer-sponsored relief fund cover employees alone. Grants […]

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Employee Relief Funds Cannot Benefit Employers

September 13, 2017
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The IRS scrutinizes whether employee disaster and hardship relief funds impermissibly serve the private interests of sponsoring employers. The prohibition on serving the sponsoring employer’s needs practically means that eligibility for the relief fund cannot be an employee benefit. Those benefits aid employers by making their workplaces […]

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