Private Benefit and Inurement

2 prohibitions in the nonprofit realm that are often confused with each other are inurement, and private benefit. The terms are related, but distinct from one another. Private benefit is a broader concept that includes inurement, but also goes beyond it. Inurement is...

Tracking Fundraising Expenses

If your organization files a Form 990, or 990-EZ, there are a few things you’ll have to report about your fundraising expenses. If you prepare ahead of a new fiscal year and have a way of tracking these expenses as they happen, it will be easier to pull the...

Unrelated Business Income

While almost all activities that nonprofit organizations work on are exempt from income tax, if an organization generates income from an activity unrelated to its charitable mission, this will result in the organization owing unrelated business income tax (UBIT). If...