Welcome to your daily briefing on nonprofit developments in Arizona. Today we're covering 7 key stories including updates on arizona nonprofit headlines, background & context. Let's dive in.
4 stories
The Community Foundation for Southern Arizona has distributed more than $200 million to regional nonprofits and educational institutions since 1980, funding programs across animal welfare, arts and culture, community development, education, environment, health, and human services.
AZ nonprofit professionals can tap into this established funding source for grants spanning seven program areas.
Harbor Compliance offers comprehensive solutions and free resources to help nonprofits manage fundraising, tax exemption, license renewals, and other compliance activities.
Arizona nonprofit professionals can streamline their administrative burden and reduce risk by leveraging tools specifically designed for their compliance needs.
501c3Lookup.org has published an up-to-date directory of IRS-registered 501(c)(3) organizations in Arizona.
Arizona nonprofit professionals can use this centralized resource for benchmarking, partnership research, and grant writing.
GrantWatch operates a dedicated Arizona portal that lists grants for nonprofits, small businesses, schools, universities, religious organizations, and municipalities across the state.
Arizona nonprofit professionals can use this centralized resource to identify relevant funding without sifting through national databases that lack local focus.
Reach professionals in this market
3 stories
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.
Donor-restricted gifts must be tracked separately and used only for the restricted purpose; using them for general operations — even with intent to "pay back" later — is a fiduciary breach and an audit finding. The most-common fact pattern: cash-flow shortage in operations, restricted-grant balance available, transfer "borrowed" with no formal repayment plan.
State attorneys general have authority over restricted-gift compliance and have pursued individual board members and executives. Auditors are required to disclose restricted-fund violations in the management letter.
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.
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