Support Kansas City's Blog

"What keeps me awake at night?" That was the question we asked ourselves in developing topics for a lunchtime seminar we held in February. While I am a pretty decent sleeper, I was able to identify a few issues that come across my desk on a fairly regular basis that make me sit up and take notice particularly in regard to compliance issues with the annual Form 990. The Form 990 received a major overhaul by the IRS in 2008 for the first time in 30 years increasing the breath of reporting into organizational policy, governance, disclosure, and compliance. The lists of questions are mind numbing and a simple answer of yes or no will often lead to completing an additional schedule or providing descriptive detail. Gone are the days when the Board Treasurer or Executive Director just signed and filed the 990. There are two issues I often get vague responses on our questionnaire and for which I would like Boards to consider developing strong(er) procedures: 1. Part VI Sec...

This is the second posting in a series of two-part series written by guest blogger Christine DeMarea, Partner at Husch Blackwell and Feb. 9, 2011 workshop host and presenter. The truth is in this day and age, with donors facing considerable financial challenges; donors are scrutinizing how a nonprofit operates. Without full confidence of the public, nonprofits will be unable to raise funds and further their charitable causes. Corporate Sponsorship versus Advertising - Issues that should be considered. The IRS will look at the payment made to a nonprofit by a corporate sponsor and decide whether the payment is a tax-free gift (charitable contribution) or a taxable advertising payment. The IRS focuses on whether the corporate sponsorship has any expectation that it will receive a "substantial return benefit" for its payment. If so, the payment is considered taxable to the nonprofit. These rules are set forth in the Internal Revenue Code, section 513(i). 1. Avoiding "Subst...

Continuing our resource theme from our Feb. 9, 2011 nonprofit compliance workshop, this is the first of a two-part series written by guest blogger Christine DeMarea, Partner at Husch Blackwell and workshop host and presenter. As any Executive Director and nonprofit board member will tell you running a Nonprofit Organization is challenging. There are many issues that must be addressed and considered on a daily basis. Amending Bylaws - Corporate Governance: The nonprofit's formation documents provide the blue print by which the nonprofit operates. If you are operating in a manner that is contrary to your Bylaws / Articles / Trust Agreement then you are breaching your duty to the organization. In addressing this issue, we strongly suggest that the nonprofit reviews its formation documents and if a change is needed, properly amend the documents. The steps that should be taken include: 1. Make sure your organization complies with your bylaws: Restate or Amend? If you operate as...

In the more than ten years that I’ve worked for or volunteered with nonprofit organizations, I’ve struggled to find my place. As a social worker and case manager working first with children transitioning out of foster care and then with adults with developmental disabilities, I loved the feeling of making a difference in my clients’ lives everyday. That sense of giving back to the community and helping those with real needs feel safer, more independent and confident carried me through the crazy hours and often chaotic family struggles. But the emotional impact and stress of that work was not something I could tolerate for the long term. I think I’ve always known that my career would include working for nonprofit causes, but where did my skills best fit in this vast and varied nonprofit community? Then in 2007, I joined Support Kansas City. Hired as Client Administrator, my duties included database management and fund development support for a variety of nonprofit clients. During the fi...