Welcome to your daily briefing on nonprofit developments in Alabama. Today we're covering 6 key stories including updates on alabama nonprofit headlines, background & context. Let's dive in.
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Harbor Compliance provides comprehensive solutions and free resources for Alabama nonprofits to manage fundraising, tax exemption, and license-renewal compliance tasks.
Alabama nonprofit professionals can use these resources to keep routine compliance obligations organized and reduce risk of gaps in required registrations, filings, and status maintenance.
The Alabama Law Foundation provides annual law-related grants to fund charitable law projects and help sustain the future of law.
For nonprofit professionals in AL, these grants can strengthen legal and justice-focused work that depends on external support.
The Community Foundation of Greater Birmingham says grants are available to nonprofits serving Blount, Jefferson, Shelby, and St. Clair Counties in AL to support work aligned with its goal of a more just, prosperous, and unified region.
AL nonprofit professionals with programs in those counties have a new local funding avenue that can strengthen service capacity and regional impact for mission-driven organizations.
Reach professionals in this market
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The streamlined Form 1023-EZ is available only to organizations meeting specific limits on projected revenue, assets, and activity types. Filing 1023-EZ when ineligible produces a determination that is technically valid but vulnerable to retroactive revocation if discovered. The full 1023 is harder to file but harder to challenge.
Loss of exemption is retroactive to the original determination, exposing the organization to back-tax liability. The eligibility checklist is the only protection.
The IRS-recommended COI policy requires (1) annual disclosure by all directors and key employees, (2) a process for review of any disclosed conflict, (3) recusal procedures, and (4) documentation in board minutes. Policies that have only the disclosure form without the review and recusal process do not satisfy the recommendation.
A weak COI policy is a Schedule L disclosure waiting to happen, and Schedule L disclosures correlate with future IRS examination selection.
Private inurement is benefit flowing to insiders (officers, directors, key employees); it is an absolute prohibition. Private benefit is benefit to outsiders that is more than incidental to the exempt purpose; it is a question of degree. Both can revoke exemption, but the legal analysis differs.
Insider transactions trigger automatic intermediate sanctions even when the exemption survives. Outsider benefit triggers a facts-and-circumstances analysis. Distinguishing them shapes the defense.
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