Taking advantage of podcasts for nonprofit knowledge

Since my business plan includes starting up a nonprofit organization, I decided to dive into the iTunes Store to find some great podcasts on the subject. What I found was astonishing because I had no clue that this incredible resource was available. I found a wide variety of podcasts related to nonprofit organizations, but decided to focus on three that really got my attention. I especially enjoyed the following podcasts because not only did they provide general information about nonprofits, they also imparted wisdom on legal issues that arise in relation to nonprofits.

The first podcast is titled Nonprofit Law Podcast #2: Startup nonprofit. I have always been curious about whether it is critical to hire a lawyer when starting a nonprofit organization. Mr. Mooney (the author/speaker of the podcast) stressed that a lawyer is not always necessary, but getting a professional to help is a very useful tool. The key here is to find a lawyer that has training and experience in nonprofit laws. I also gathered a lot of helpful tips about obtaining nonprofit corporate status and tax-exempt status with the IRS. Mr. Mooney made it seem like gaining nonprofit status was fairly simple, while obtaining tax-exempt status was a much tougher area to accomplish. I need to be sure to factor that into my planning because nine to twelve months is a long time to wait for the approval from the IRS. People will not be able to give charitable contributions without this crucial step, so if I want to put on any fundraisers, gaining the tax-exempt status is a priority. Lastly, I know how important it is to have really great volunteers on your team, but it is of utmost importance to have great board members as well. They must be extremely committed and dedicated to the organization because I will be relying on them a lot, especially in the first year of running the nonprofit.

The second podcast is titled Nonprofit Law Podcast #4: Public disclosure rules. This podcast really showed me the way in regards to how nonprofits get taxed. I learned that nonprofits actually get preferential tax treatment, but there are also some disadvantages that come with the tax privileges. Nonprofits have to have their tax returns from the prior three years available in case someone requests this information. As a nonprofit, we would have to have these documents on hand at all times. After I gave it some thought, I realized it makes sense to give public disclosure of information because we are a public charity.

The third podcast is titled Nonprofit Law Podcast #5: The different flavors of nonprofits. I particularly enjoyed this podcast because it showed me the similarities and differences between a public charity and a private foundation. Both the public charity and the private foundation are tax exempt and have a legal form in each state. A public charity, aka 501(c)(3), has a lot of public support and donors get tax deductions. Some examples include the Red Cross and the American Cancer Society. A private foundation is pretty similar to a public charity, but they cannot show their public support. This means that they get their money from a limited source. An example of a private foundation would be the Bill and Melinda Gates Foundation. 

References:

Mooney, Tim (2007). Nonprofit Law Podcast #5: The different flavors of nonprofits. Nonprofit Law Podcast. Retrieved March 27, 2010 from

http://itunes.apple.com/us/podcast/nonprofit-law-podcast-5-the/id
25681383 2?i=92174163.

Mooney, Tim (2007). Nonprofit Law Podcast #4: Public disclosure rules. Nonprofit Law Podcast. Retrieved March 27, 2010 from
http://itunes.apple.com/us/podcast/nonprofit-law-podcast-4-public/id256813832?i=92174154.

Mooney, Tim (2007). Nonprofit Law Podcast #2: Startup nonprofit. Nonprofit Law Podcast. Retrieved March 27, 2010 from

http://itunes.apple.com/us/podcast/nonprofit-law-podcast-2 startup/id256813832? i=92174137.

Legal liabilities for non profit organizations

I have chosen to integrate a non profit organization into my business plan. I quickly discovered that similar rules and regulations of a for profit business apply to a non profit organization just as well. There are oftentimes problems with common people using copyrighted material from non profits or vice versa where non profits think that being a non profit entitles them to fair use on copyrighted materials. Both cases are sufficiently incorrect. Below, I outlined three court cases associated with non profits in order to gain a better understanding of their legal liabilities.

Answers in Genesis v. Creation Ministries International

www.internationallawupdate.com

This 2007 court case between Answers in Genesis (AiG) and Creation Ministries International (CMI) broke out because of accusations against AiG’s leader, Ken Ham. Mr. Ham was blamed for not representing the US office appropriately and not gaining permission from the publishers of the CMI offices. The US office blatantly deceived CMI customers and used the shared trademark without authorization.

In my opinion, since AiG (the US office) and CMI (the international office) are non profit organizations working together for the common good, they should have been more specific on what areas were to be conducted together and which areas could be worked on individually. AiG and CMI should have discussed trademark, copyright, website sharing, and control of affiliate regulations, and then they should have proposed a written contract.

Montana Supreme Court v. Charles M. Bair Family Museum

http://chronicle.com

This 2008 court case between The Montana Supreme Court and Bair Family Museum is closely followed in the non profit sector because of its importance in dealing with trustees who pass away. The Bair Family Museum was unjustifiably closed in 2004, but later reopened after reviewing the case. Lawyers soon realized that the trustee originally opened the museum with purposes of charitable giving, not to make a profit for the Bair family.

In my opinion, just because the trustee in the former case had passed on, it does not mean that the museum can be dealt with in a way other than what the trustee originally intended. The trustee’s preplanning must be honored and followed through on. Donations must be spent as stipulated by the trustee. In my opinion, non profits must work harder to eradicate selfish behavior and comply with the law.

AOSI v. USAID

http://www.brennancenter.org/content/resource/aosi_v_usaid/

This 2006 court case between the Alliance for Open Society International (AOSI) and the U.S. Agency for International Development (USAID) was a case where the First Amendment right came into question. USAID penalized AOSI because they felt the privately funded organization was not adapting to the anti-prostitution pledge.

In my opinion, the anti-prostitution pledge prohibits speech in violation of the First Amendment. AOSI is a privately funded organization helping in the fight against HIV/AIDS. The organization should not have to censor their privately funded speech, and especially not be extracted from federal funding. USAID should recognize that they are potentially eliminating a lifesaving non profit organization.

References:

Abel, Laura. May 11, 2010. Brennan Center For Justice. AOSI v. USAID. Court Cases. Challenging Global AIDS Funding Restrictions.

Gose, Ben. May 15, 2008. The Chronicle of Philathropy. Montana Court Ousts Board of Museum. Vol 20. Retrieved March 6, 2011 from http://chronicle.com.

Transitional Law Associates, LLC. Feb 1, 2009. International Law Update. Arbitration. Vol 15. Retrieved March 6, 2011 from www.internationallawupdate.com