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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ADECA posts its currently open grant opportunities, requests for proposals, and requests for applications to a dedicated webpage that is updated regularly.
Alabama nonprofit professionals can find state-level funding streams to support programs and operations without missing deadline-driven opportunities.
Harbor Compliance provides comprehensive solutions and free resources to help manage fundraising, tax exemption, license renewals, and other nonprofit compliance activities.
Alabama nonprofit professionals can streamline their compliance obligations and reduce administrative burden using these tailored tools.
The Alabama Law Foundation makes grants each year for law-related charitable projects to help ensure the future of law.
Alabama nonprofit professionals working on legal access, civic education, or justice initiatives may find a funding pathway through this foundation.
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.
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.
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.
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