There’s a lot to go through in the One Big, Beautiful Bill Act or “OBBBA”. We are going to focus on some of the changes impacting tax exempt organizations and a high level overview of what the average nonprofit leader and donors are interested in. This is not meant to be comprehensive, rather a digestible overview of the OBBBA as it impacts the charitable landscape.

You Can’t Deduct What You Don’t Itemize. Anecdotally, the 2021 changes to the Internal Revenue Code (IRC) impacted the giving patterns of small donors in particular by requiring taxpayers to choose between itemizing charitable contributions or taking the standard deduction.

HR 9495, also known as: “The Stop Terror-Financing and Tax Penalties on American Hostages Act”, passed in the House by a vote of 219-184 largely along party lines, with 15 Democrats supporting the bill and one Republican voting in opposition. It’s now headed to the Senate

You can’t avoid politics this time of year, especially if you live in the Washington D.C. area like I do. If you are speaking on behalf of a nonprofit organization, however, it’s best to keep your endorsement of, or opposition to, a candidate to yourself.

Now recipients of federal grants had to be as well. In our community there were business owners who found the process of registering with SAM.gov to be an insurmountable challenge and decided not to apply for the funds!

Unrelated business income tax (“UBIT”) is one of my favorite little avenues in the nonprofit world. Maybe it’s because it comes with an interesting, entrepreneurial backstory.

A public charity isn’t always the way to go. For some donors, generally families or businesses that have a philanthropic goal, a private foundation is the preferable nonprofit charitable entity. It can be funded over time but is often created with a single endowment.

Although a tax-exempt organization is, as the name suggests, exempt from paying taxes, most nonprofits are still required to file an annual informational return (Form 990). This form generally must be filed electronically.

Every 501(c)(3) organization is categorized as either a public charity or a private foundation. This is referred to as a “foundation classification” and the determination itself is called a 509(a) ruling.

Once you have filed your organizational documents with your state and obtained your EIN number, you are ready to apply for tax exempt status with the IRS. A nonprofit organized under Section 501(c)(3) of the Internal Revenue Code, is one that is organized for charitable, religious, or educational purposes.

The tax-exemption process begins with the filing of IRS Form 1023 or the streamlined version, 1023-EZ which is generally available to smaller nonprofits with assets of $250,000 or less and gross receipts of $50,000 or less.

Bylaws aren’t just formalities, they’re the rules that shape your nonprofit’s future. In this guide, we break down key bylaw components including board structure, conflict of interest, dues, amendments, and more. Inspired by Suits, built for the real world.

Ready to start a nonprofit? Learn how to file Articles of Incorporation, meet IRS 501(c)(3) requirements, choose a board, and avoid common legal pitfalls. Step-by-step guidance with state-specific tips.

Thinking of starting a nonprofit? This step-by-step guide covers the legal requirements, organizational structure, and key strategies to launch and grow a successful 501(c)(3) nonprofit.