Welcome to your daily briefing on nonprofit developments in New Jersey. Today we're covering 5 key stories including updates on new jersey nonprofit headlines, background & context. Let's dive in.
2 stories
The Community Foundation of New Jersey creates connections that link donors, nonprofits, and communities throughout the state.
NJ nonprofit professionals can leverage this established philanthropic network to access funding partnerships and collaborative opportunities.
The Community Foundation of New Jersey maintains and regularly updates a list of grant opportunities available to area nonprofit organizations.
Nonprofit professionals in NJ can monitor this centralized resource to identify timely funding opportunities and plan development strategies.
Reach professionals in this market
3 stories
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.
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.
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.
Get New Jersey nonprofit intelligence delivered to your inbox every morning.
Subscribe FreeView all past issues
Feature your brand across the U.S., Canada, and select international markets and 10 industry verticals.
Become a National Partner