Welcome to your daily briefing on nonprofit developments in Massachusetts. Today we're covering 6 key stories including updates on massachusetts nonprofit headlines, background & context. Let's dive in.
3 stories
The Massachusetts Charity Registration system provides an online portal for charities to complete their registration requirements.
MA nonprofit professionals can now handle charity registration through a centralized digital platform, streamlining compliance with state requirements.
The Massachusetts charities filing search portal provides public access to charity filings.
MA nonprofit professionals can use this tool to research peer organizations, verify compliance, and access public financial disclosures.
Mass Humanities offers humanities grant programs designed to enrich lives and strengthen society for nonprofits, organizations, communities, and individuals across Massachusetts.
Nonprofit professionals in MA can access dedicated funding to support humanities-based programming that builds community and advances their organizational mission.
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.
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.
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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