Avoid Copyright Infringement

How to Properly Use Music and Images During Worship Service

Churches today use a variety of intellectual property during worship services, such as music, photographs, quotes, and video clips.  These materials can be important to a worship service by increasing engagement, illustrating a point, or adding extra meaning to the service.  However, most materials are protected by copyright laws.

Using intellectual property without the permission of the copyright owner or other legal authority is copyright infringement and can result in significant monetary damages.  Churches need to know the legal issues that apply to using intellectual property so they can take steps to get permission when needed and avoid copyright infringement.    Continue reading “Avoid Copyright Infringement”

Supreme Court to Hear Case That Could Change Multi-State Sales Tax Law

South Dakota v. Wayfair Inc. Challenges Quill Corp. v. North Dakota Decision

A very important case will be heard by the U.S. Supreme Court that could dramatically change the sales tax landscape.  This spring the Court will hear South Dakota v. Wayfair, Inc., which challenges a prior Supreme Court decision in Quill Corp. v. North DakotaContinue reading “Supreme Court to Hear Case That Could Change Multi-State Sales Tax Law”

IRS Deems Pet Visitation is for the Public Good

If you have spent time in a hospital you may have seen pets walking through the hallways en route to patient visitations.  Pet visitation programs are often organized and coordinated by charities established solely for the purpose of providing pet visitation.  The charities work with hospitals and other healthcare providers to offer pet visitation services to patients.  Some hospitals organize their own pet visitation programs. A recent IRS ruling (PLR 201719018, May 12, 2017) concluded that a pet visitation program organized by a medical research and educational institution qualified as a charitable purpose of the institution.
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Nonprofits and Executive Compensation

Nonprofit organizations are often surprised that their executive compensation practices can be subjected to Internal Revenue Service (IRS) scrutiny. Executive compensation is more than an executive’s salary, compensation includes an executive’s retirement plan, any deferred compensation, and other fringe benefits. Over the past several years, the IRS has increasingly investigated the executive compensation practices of nonprofit organizations. In addition, nonprofit executive compensation is a common risk-area flagged for audit by the IRS.  IRS scrutiny of excessive executive compensation is not just a concern of large nonprofits with substantial resources but for small nonprofits as well. Continue reading “Nonprofits and Executive Compensation”

Developing Open Source Software Not an Exempt Purpose

You may be familiar with open source software. If you are, you know it is software people can modify and share because its design is publicly accessible. Would efforts to develop open source software qualify as an exempt purpose under tax law? It’s not commercial and it benefits the public, right?

Not according to the IRS. Continue reading “Developing Open Source Software Not an Exempt Purpose”

Amateur Sports League’s Tax Exemption Revoked

It’s common this time of year to see amateur baseball teams facing each other in a game full of rivalry and friendly competition. Amateur sports teams are often organized as nonprofits and may qualify for tax exemption. In a recent case the IRS revoked the 501(c)(3) tax exempt status of an organization that operated an amateur baseball league for adults (“League”) (PLR 201717044, April 28, 2017).  The IRS concluded that the League was not organized or operated for exempt purposes.To qualify for exemption under Section 501(c)(3) an organization must be organized and operated for exempt purposes.  Exempt purposes include educational and charitable activities. Continue reading “Amateur Sports League’s Tax Exemption Revoked”

One Size Does Not Fit All: What Type of Criminal Background Check Are You Using?

Criminal background checks are a necessity for every nonprofit organization or church serving children, and many others as well. Although this involves extra work and expense, the potential benefits are exponential. For those organizations that work with children, the screening process serves two purposes: it protects children from potential predators and helps insulate the organization from liability for negligent selection or retention in the event that a child is harmed by someone inside the organization. Background checks should be done on any person interacting with the public, including employees, independent contractors, and volunteers.

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Attention Non-Profits (and Social Enterprises): Are Your Charitable Registrations in Order?

The executive director of a national charity contacted our office with a question about charitable registrations. She served on the board of a non-profit corporation called “Socks for Everyone,”[1] and her board actively solicited charitable contributions in every state. She explained that Socks had filed for authorization to do business in every state, but had registered to solicit only in Illinois—its state of incorporation. She had been informed that Socks did not need to register in the other 49 states since it was already authorized to do business in all of them. Continue reading “Attention Non-Profits (and Social Enterprises): Are Your Charitable Registrations in Order?”