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.
3 stories
Alabama law requires charitable organizations and institutions that solicit contributions in or from the state to register with the Attorney General.
Nonprofit professionals in Alabama need to understand this registration requirement to maintain legal compliance and avoid penalties when fundraising.
Harbor Compliance provides comprehensive solutions and free resources to help manage fundraising, tax exemption, license renewals, and other nonprofit compliance activities in Alabama and across the US.
Alabama nonprofit professionals can streamline their compliance workload and reduce risk by leveraging these specialized tools and guidance tailored to their operational needs.
Each year, the Alabama Law Foundation makes grants to support law-related charitable projects that help ensure the future of law in the state.
Alabama nonprofit professionals focused on legal aid, access to justice, or law-related education should note this funding opportunity from a state-based foundation.
Reach professionals in this market
3 stories
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.
Unrelated business income tax applies when an activity is regularly carried on, is a trade or business, and is not substantially related to the exempt purpose. Common surprises: corporate-sponsored events with naming rights that look like advertising, affinity credit-card royalties that include co-marketing services, and gift-shop sales of items unrelated to the mission.
UBIT exposure can cost both tax and exempt status if the unrelated business becomes substantial. The line between sponsorship (excluded) and advertising (included) is narrow and case-specific.
Most states require charities soliciting donations from their residents to register before solicitation, regardless of where the charity is based. "Solicitation" includes web fundraising pages accessible to residents, not just direct mail. Compliance gaps surface during state attorney-general inquiries or unrelated litigation discovery.
Penalties range from civil fines to suspension of solicitation rights in the state. Larger consequences include negative coverage in donor research databases that fund foundation grants.
Get Alabama nonprofit intelligence delivered to your inbox every morning.
Subscribe FreeView all past issues
Feature your brand across the U.S., Canada, and select international markets and 10 industry verticals.
Become a National Partner