Legal Compliance and Non-Profit Management

“What you’re doing is worth gold…no other organization can do what you’re doing with the meticulous focus and excellent advocacy you bring to such critical issues.” 
   
-- Donna Pressma, President and CEO, Children’s Home Society of New Jersey

Have a question?

Our non-profit HelpDesk information and referral service answers telephone and e-mail questions on non-profit compliance and management issues such as IRS regulations, tax laws, fund raising issues, Board/staff roles and responsibilities and many others. Center members get priority access and more in-depth assistance. More information


Federal Judge Blocks Overtime Rule

Salary threshold declared invalid; “white collar duties tests” under existing law remain unaffected

On November 22, 2016, a federal district judge in Texas issued a preliminary injunction blocking implementation of the Overtime Final Rule adopted by the U.S. Department of Labor (DOL) last May, ruling that the DOL had exceeded its authority.

Non-profits need to be aware that even though the salary threshold remains suspended, employees must still satisfy other criteria, particularly the administrative, executive or professional "duties tests," in order to be exempt from overtime requirements. The recording from the Center's November 9 webinar about the duties tests is available for Center members. 

more information


IRS Issues Shortened Form 1023-EZ for Small Startup Organizations

On July 1, 2014, the IRS announced the release of a new, shorter application for eligible small organizations seeking recognition of tax exempt status under Section 501(c)(3). Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, is the Service’s effort to simplify the application process for smaller organizations, and to reduce its existing backlog of exempt organization applications.

The Form 1023-EZ can provide a streamlined path to tax exemption, but it's not for everyone. Read the Center's article for an overview of:

  • Who Can File Form 1023-EZ;
  • A Word of Caution about Form 1023-EZ;
  • Process for submitting Form 1023-EZ;
  • Suggested Resources.

Read the article


Sobel NP Desk Reference

Nonprofit & Social Service Organizations
Desk Reference Manual (Third Edition)

Prepared by Sobel & Co, LLC CPAs

The Desk Reference Manual For Nonprofit and Social Service Organizations outlines the basic financial, accounting, tax compliance, organizational and legal issues regarding the ongoing operations of nonprofit and social service organizations and provides resources to address these concerns. Critical issues such as obtaining federal recognition of nonprofit status, charitable solicitation registration and basic financial statements, including statement of activities, statement of financial position, cash flows and functional expenses, are addressed. Download the PDF.


IRS Voluntary Program for Employers to Classify Workers Correctly

Employers who improperly classify their employees as independent contracts risk facing stiff fines and penalties if a government audit finds that the workers should have been designated as employees.  The IRS has implemented a program to encourage employers who have misclassified their workers to correct the situation without penalty and at a reduced cost. 

more information


State employment requirements governing certain information requests, unpaid leave, and others
This "must-read" article from our friends at the Pro Bono Partnership summarizes four state laws passed in 2013 that affect non-profit employers. The statutes cover protection of employees who request information as part of discrimination claims; unpaid leave for victims of sexual assault or domestic violence; penalties for failure to respond to NJ Department of Labor requests; and access to private social media accounts of employees and job applicants.
Read the article


IRS Exempt Organization Automatic Revocation List

A list you do NOT want to make...

Since May 2010, the IRS has been revoking the tax-exempt status of organizations that are required to file Form 990, Form 990-EZ, Form 990-N (e-postcard) or Form 990-PF (private foundations) and have failed to do so for 3 consecutive years. MOST NON-PROFITS ARE SUBJECT TO THESE REQUIREMENTS. If exempt status is revoked, the only way to reinstate it is to reapply for tax exemption.

The New Jersey revocation list includes over 19,000 organizations, more than 12,000 of which are 501(c)(3). The tax exemption status of these organizations were automatically revoked for failure to file the required Form 990 information return for three consecutive years. This list is updated monthly.

For more information including a list of revoked organizations and what you can do if your status has been revoked

IRS - Form 990 Resources and Tools for Exempt Organizations

IRS - Which Form 990 Should You File?

Specific information about the Form 990-N E-postcard for small organizations

For more information about e-filing of Form 990 or Form 990-EZ and a low-cost, online e-filing solution, visit the Urban Institute's e-filing Web site at http://efile.form990.org/[Note: effective February 29, 2016, e-filing of the Form 990-N e-postcard is done directly through the IRS.] 


IRS Disclosure Regulations for Non-Profits - Public charities and private foundations are required to make copies of their Form 990 and 1023 available for public inspection at their principal place of business and to mail copies upon request or make them widely available by posting them on the Internet. It is important for non-profits to familiarize themselves with these regulations and adopt internal policies and procedures to ensure compliance.

NJ Charities Registration Raises Mandatory Audit Threshold for Non-Profits

In February 2011, the New Jersey Division of Consumer Affairs approved regulations that raised the mandatory audit threshold for charities under the "Charitable Registration and Investigation Act." The amended regulations, published in the February 22, 2011, New Jersey Register, include a provision requested by the Center for Non-Profits that raises the audit threshold from $250,000 in gross revenue to $500,000.

The rule adoption means that any organization with less than $500,000 in gross revenue in its most recently completed fiscal year will no longer have to submit an independent audit in order to satisfy the requirements of New Jersey's fund raising statute. The Center estimates that the new change could save each covered organization an average of $7,000 annually, and will result in an annual combined savings of over $10 million for the non-profit community. more information


New Jersey's Family Leave Insurance Law

New Jersey's Family Leave Insurance law (FLI) enables eligible employees to collect up to six-weeks of state paid monetary benefits when out of work to care for a newborn, newly adopted child, or an ill family member. This insurance law is an extension of the State Temporary Disability Benefits Program and applies to employers of all sizes. This article, posted with permission of the Employers Association of New Jersey, highlights the key provisions of the law.
Click here for article


 

Thinking of Forming a Non-Profit?
Spanish Version - Thinking of Forming a Non-Profit?

Thinking of Forming a Non-Profit? What to Consider Before You Begin

-- If you are considering starting a non-profit organization, read this guide first. This booklet explains the basics of what a non-profit is and portrays a realistic picture of what is involved in getting a new non-profit up and running. The booklet also provides information specific to faith based and religious institutions. Available in English and Spanish. More information.

 

 

 

 

Piensa en Formar una Organización sin Fines de Lucro?

Este folleto explica los conceptos básicos de lo que significa sin ánimo de lucro y presenta una imagen realista de los trámites para establecer una nueva organización sin fines de lucro. El folleto también ofrece información específica para las instituciones religiosas. Más detalle.

 

 


Hiring, Firing & Risk Management

Hiring, Firing & Risk Management: Employment Law for New Jersey Nonprofits

This comprehensive reference book is an essential resource for non-profit employers and would-be employers. Members receive a 25% discount. More details and a printable order form now available online. Order yours today!

NJ Non-Profit Filing Fees - Some of the non-profit filing fees paid to the New Jersey Department of Treasury, Division of Revenue, effective July 1, 2002. more details

Use Caution When Fundraising Online -- Some issues to consider if you plan to use the Internet to generate revenue for your organization -- whether you solicit donations on your website, on someone else's, or if your organization has any sort of online presence.

IRS Disclosure Regulations for Non-Profits - IRS regulations require public charities to mail copies of their Form 990 and 1023 upon request or make them widely available by posting them on the Internet. It is important for non-profits to familiarize themselves with these regulations and adopt internal policies and procedures to ensure compliance.

The Federal Volunteer Protection Act

Eight Tips to Involve Your Board in Fund Raising

FTC Telemarketing Rules

DUNS number required for all federal grant applications -- click here to read the details.


Public Policy Updates

Visit our Public Policy page for additional information regarding new and emerging legislative and regulatory issues.



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For older information please visit our Legal/Management Archive