Welcome to your daily briefing on nonprofit developments in Kansas. Today we're covering 5 key stories including updates on kansas nonprofit headlines, background & context. Let's dive in.
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The Community Foundation of Southwest Kansas maintains a grants page for funding opportunities available to area organizations.
Southwest Kansas nonprofit professionals can access local philanthropic funding to support their missions and community impact.
The Kansas Non-Profit Legal Center serves as a trusted partner providing legal and professional services with expert guidance and support for organizations in the state.
KS nonprofit professionals gain access to specialized legal expertise tailored to the unique regulatory and operational challenges facing Kansas organizations.
Reach professionals in this market
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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.
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.
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