Introduction In the prior post in this series, we examined the 33⅓% public support test and the 2% limitation rule governing donor-supported public charities under Section 170(b)(1)(A)(vi) of the Internal Revenue Code (“IRC”). However, many nonprofits are supported by earned revenue including program fees, and memberships. This article turns to a distinct framework, the public …
Compensation for nonprofit executives, especially CEOs, is one of the most scrutinized aspects of nonprofit governance. While nonprofit organizations are mission-driven and tax-exempt, they still operate in a competitive market for leadership talent. The IRS allows nonprofits to pay reasonable compensation for services rendered, but the line between “reasonable” and “excessive” can be narrow. For …
Nonprofit organizations in the United States constantly struggle with operational and financial challenges. Speculation about the common challenges faced by our nation’s nonprofits is abound, but what do the concrete statistics say? The BDO Institute for Nonprofit Excellence recently released a report from its survey of 105 nonprofits that reveals the current challenges nonprofits are …
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