Charity Therapy

Jess Birken, MNM, JD

What if you could hang out with experienced nonprofit professionals and ask them your burning questions about the day-to-day life of nonprofits? What if you could take their wisdom and bring it back to your organization, for free? That's what we do on Charity Therapy. Hosted by Jess Birken - owner and lawyer at Birken Law Office. Every episode is an in-depth look at how to run a nonprofit, from fundraising to IRS woes to people problems and more! Our goal is to empower nonprofits to achieve your mission by doing things right.

Categories: Business

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On this episode of Charity Therapy, we're gonna break down the often confusing world of IRS status for 501(c)(3) nonprofits.

We know, taxes? Yawn, right? But stick with us because we'll make it as painless as a Band-Aid on a teddy bear. We'll dig into the difference between public charities and private foundations and spill the beans on why “tax-exempt” doesn't mean you can ghost the IRS on other taxes like payroll and sales tax. Yep, even nonprofits can't dodge the tax man entirely!

But don't worry. We’re not leaving you to figure this out alone. Jess and Meghan dive into the deep end of what it means to keep your nonprofit's nose clean with the IRS. Spoiler alert: You could lose big time if you snooze on your paperwork. We talk about the dreaded “automatic revocation” (cue dramatic music), which is IRS-speak for, “You're outta here!” if you forget to do your homework. We've all been there, juggling life's curveballs and trying to save the world. Sometimes, things slip through the cracks, and suddenly, your tax-exempt status vanishes like ice cream on a hot day. But hey, we've got tips and a nifty tool called DIY Mission Guardian to help you stay on track without breaking the bank.

Lastly, if you're like, “Wait, what's this 990 form everyone's talking about?” don't sweat it. Think of it as your nonprofit's yearly selfie to the IRS, saying, “Look, we're still here, and we're awesome!” We chat about why it's super important and how not filing it is like forgetting your best friend's birthday—three years in a row. Trust us, you don't want to be that guy.

Grab your favorite snack, kick back, and let's navigate the IRSlabyrinth together.

In this episode, you will hear:

Tax exemption for nonprofits isn't a total tax break
Combining a 501(c)(3) and a 501(c)(4) sounds like a neat trick, but no can do - one nonprofit can't be two tax-exempt BFFs at the same time
Missing your 990 filings is like ghosting the IRS
Running a nonprofit ain't a solo gig
Before you go all in on reviving your nonprofit, take a beat
Nonprofits hiring their first employee need to jump through all the usual hoops

Resources from this Episode

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Episode Credits

If you like this podcast and are thinking of creating your own, consider talking to my producer, Emerald City Productions. They helped me grow and produce the podcast you are listening to right now. Find out more at https://emeraldcitypro.com Let them know we sent you.