Welcome to your daily briefing on nonprofit developments in Delaware. Today we're covering 5 key stories including updates on germany nonprofit headlines, background & context. Let's dive in.
2 stories
Delaware First Health and the Centene Foundation have launched an open submission period for community-based organizations and providers across Delaware to apply for funding through June 13, 2025.
This creates a time-sensitive funding opportunity for Delaware nonprofit professionals serving health and community needs statewide.
A new guide from Tax990 covers how to start a nonprofit corporation in Delaware, obtain tax-exempt status, and meet DE annual report requirements.
DE nonprofit professionals can use this resource to stay compliant with state filing obligations and avoid penalties.
Reach professionals in this market
3 stories
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.
Negligent-screening claims arise not from failing to have a screening policy, but from failing to follow the policy that exists. A documented policy with inconsistent enforcement is harder to defend than no policy at all, because the deviation is evidence of negligence.
Insurance carriers tighten coverage on organizations with screening-process gaps. The cost of consistent enforcement is small; the cost of a single uninvestigated incident can close the organization.
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