1 ASSIGNMENT THREE Due last class session Grant Proposal or Event Plan Grant proposal must be real...
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Transcript of 1 ASSIGNMENT THREE Due last class session Grant Proposal or Event Plan Grant proposal must be real...
1
ASSIGNMENT THREE
Due last class session Grant Proposal or Event Plan Grant proposal must be real
and complete Event Plan must be detailed
plan for a specific event
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NONPROFIT BUSINESS NONPROFIT BUSINESS ACTIVITYACTIVITY
Grantsmanship and FundraisingGrantsmanship and Fundraising
College of Public and Community ServiceCollege of Public and Community Service
University of Massachusetts at BostonUniversity of Massachusetts at Boston
©2007 William Holmes©2007 William Holmes
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NONPROFIT BUSINESS ISSUESNONPROFIT BUSINESS ISSUES
Tax RulesTax RulesBusiness OptionsBusiness OptionsBuilding on StrengthsBuilding on StrengthsBusiness PlanningBusiness PlanningLicense, Copyright, License, Copyright,
Cooperative VenturesCooperative Ventures
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NONPROFIT TAX RULESNONPROFIT TAX RULESMust relate to Must relate to
organizational purposesorganizational purposesRequires organized Requires organized
bookkeeping and bookkeeping and accountingaccounting
Doesn’t benefit individuals Doesn’t benefit individuals or non-charitable or non-charitable organizationsorganizations
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ACCEPTIBLE NONPROFIT ACCEPTIBLE NONPROFIT BUSINESSBUSINESS
One-time or occasional One-time or occasional eventsevents
Activity clearly within Activity clearly within organizational purposeorganizational purpose
Specifically exempted Specifically exempted activitiesactivities
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MISSION RELATED NONPROFIT MISSION RELATED NONPROFIT BUSINESSBUSINESS
Mission related educationMission related educationMission related trainingMission related trainingMission related therapy or Mission related therapy or
rehabilitationrehabilitationMission related experienceMission related experienceMission related travelMission related travel
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NONPROFIT BUSINESS NONPROFIT BUSINESS NOT ONGOINGNOT ONGOING
Once a yearOnce a year IrregularIrregularSpecial eventsSpecial eventsNot resembling regular Not resembling regular
businessbusiness
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NONPROFIT BUSINESS NONPROFIT BUSINESS EXEMPTIONS: 1EXEMPTIONS: 1
Volunteer basedVolunteer basedFor convenience of groupFor convenience of groupCompany sponsorships Company sponsorships
without clear advertisingwithout clear advertisingMerchandise sold is Merchandise sold is
donateddonated
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NONPROFIT BUSINESS NONPROFIT BUSINESS EXEMPTIONS: 2EXEMPTIONS: 2
Permitted bingo gamesPermitted bingo games Rental of membership listRental of membership list Entertainment at fair or Entertainment at fair or
exposition for agriculture or exposition for agriculture or educationeducation
Dividends, interest, investment Dividends, interest, investment incomeincome
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NONPROFIT BUSINESS NONPROFIT BUSINESS EXEMPTIONS: 3EXEMPTIONS: 3
Royalties from use of name, Royalties from use of name, trademark, or copyrightstrademark, or copyrights
Rents from real propertyRents from real propertyResearch grants or contractsResearch grants or contractsGains or losses from selling Gains or losses from selling
propertypropertyFee for mission related Fee for mission related
serviceservice
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NONPROFIT BUSINESS NONPROFIT BUSINESS TAXABLE INCOMETAXABLE INCOME
““Regular Trade or Business Substantially Regular Trade or Business Substantially Unrelated to Purpose”Unrelated to Purpose”
1.1. Trade or BusinessTrade or Business: selling goods or : selling goods or serviceservice
2.2. RegularRegular: frequency and continuity : frequency and continuity typical for that businesstypical for that business
3.3. Substantially UnrelatedSubstantially Unrelated: : not directly not directly contributingcontributing to organizational purpose to organizational purpose
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EXAMPLE NONPROFIT EXAMPLE NONPROFIT TAXABLE INCOMETAXABLE INCOME
Selling mailing list to for-profit businessSelling mailing list to for-profit business Using facility charging access to Using facility charging access to
general publicgeneral public Selling crafts made by general publicSelling crafts made by general public Offering unrelated service to the publicOffering unrelated service to the public Travel tours without education related Travel tours without education related
to purposeto purpose Charging for use of name on product Charging for use of name on product
endorsementendorsement
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NONPROFIT INCOME:NONPROFIT INCOME:RISKS TO CHARITY STATUSRISKS TO CHARITY STATUS
Business must not dominate charitable Business must not dominate charitable activityactivity
Taxable income must not dominate Taxable income must not dominate nontaxable incomenontaxable income
Business must not be substantially Business must not be substantially increasing when charitable activity is increasing when charitable activity is decreasingdecreasing
Consider separating successful Consider separating successful businessbusiness
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NONPROFIT BUSINESS NONPROFIT BUSINESS PRINCIPLES: 1PRINCIPLES: 1
Client run business is good for Client run business is good for training and poor for profitstraining and poor for profits
Sales of goods has opportunity Sales of goods has opportunity costs and needs experienced costs and needs experienced managersmanagers
Sales of services need skilled Sales of services need skilled service providersservice providers
Key on unmet needsKey on unmet needs