PROED 524 - Nonprofit Tax and Legal Compliance: Protecting your Exempt Status

This course describes the federal and state regulatory environment that must be understood by every nonprofit corporation Board and executive management team, in order to avoid sanctions, liability, and possible revocation of tax exemption. This course defines many misunderstood terms such as 'nonprofit' and 'foundation'; explains how laws are made in Utah, including the background of the Revised Nonprofit Corporation Act; teaches Board members how to shield themselves from liability; identifies the role of the Utah Attorney General; provides guidance on post-incorporation formalities, including conduct of meetings and making valid resolutions; describes the role of 'members' and whether they are necessary; analyzes Utah's charitable solicitation laws and how to avoid criminal and civil penalties; provides an overview of federal tax law; highlights advantages and disadvantages of exempt status; describes rules of compliance in order to maintain tax exemption and avoid IRS penalties; points out chances of an IRS audit and how to respond if an audit occurs; explains tax laws concerning fundraising and charitable giving; and reviews when an exempt corporation must pay federal income tax and how it may be able to avoid Utah income, sales, and property taxes.