Welcome to your daily briefing on nonprofit developments in Maryland. Today we're covering 5 key stories including updates on maryland nonprofit headlines, background & context. Let's dive in.
2 stories
Governor Moore announced over $19 million in funding for the second year of the ENOUGH Initiative, which supports community-based programs in Maryland.
Maryland nonprofit professionals should track these funds as potential partnership or subcontracting opportunities with local governments and community organizations implementing ENOUGH Initiative programs.
A Maryland membership organization is posting members’ Requests for Proposals (RFPs) to the broader MD nonprofit community.
For MD nonprofit professionals, the list provides a centralized way to identify opportunities and collaborations already being sought by peers in the field.
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.
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.
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