Avoiding Activities that Jeopardize a Charity’s Tax-Exempt Status (Delaware Banker)

Avoiding Activities that Jeopardize a Charity’s Tax-Exempt Status by Jonathan D. Moll, CPA was published in the Spring 2017 issue of Delaware Banker (Delaware Bankers Association)

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EXCERPT FROM ARTICLE…

The passionate and energetic board members that lead organizations within the Delaware nonprofit community are integral to the success of those organizations. The community leaders that volunteer their time with our charities strategically direct the delivery of much needed services within our state. However, the prerequisites of a strong board member extend beyond a passion for the mission. It is critical for nonprofit board members to recognize that tax-exempt status is not a benefit that is earned only when the organization receives its determination letter from the IRS.  Rather, it is a status that is earned continually through the demonstration of tax compliance. The IRS acknowledges the role of board members and have stated that good governance and tax compliance go hand in hand. As a result, board members must be familiar with the activities that could jeopardize an organization’s tax-exempt status.

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