Posted in NewsNotes Archive
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Issue 77 |
NEWSNOTES is a monthly email newsletter published by NEW. It covers resources available at NEW in Ann Arbor and Detroit as well as items of interest to the nonprofit community in southeastern Michigan. NEWSNOTES is proud to celebrate its seventh year of publication, with delivery to over 1,300 subscribers every month! We welcome your This e-mail address is being protected from spambots. You need JavaScript enabled to view it !
NEW would like to recognize the generous support of its Community Partners: The Ann Arbor Area Community Foundation, the DTE Energy Foundation, The James A. & Faith Knight Foundation, The Lloyd and Mabel Johnson Foundation, Online Technologies Corporation, The Power Foundation, and the W.K. Kellogg Foundation. And special thanks to NEW's founding partner, the McKinley Foundation.
IN THIS ISSUE
| LEAD STORY |
| FEATURED ITEMS |
| REGULAR FEATURES |
| NEWSNOTES Resource of the Month |
Legal Handbook for Nonprofit Corporation Volunteers:or What to Do Till the Lawyer Comes.
Learn more about this resource through ResourceConnect ® |
LEAD STORY
Staying Legal: Acknowledging Donations
by Marion Gorton*
With the holiday season, the “giving season,” upon us, your charity may be receiving more donations than usual. It is also the end of the tax year when taxpayers are conscious of what they can deduct as charitable contributions on their own tax forms. It’s important for charities to know not only what is required of them, but also how to make giving more appealing and convenient for donors and potential donors. After all, you want those donors to come back year after year. Here is some information to help charities and donors follow the rules.
What charities are required to do:
When a donor makes a payment to a charity and receives goods or services in return, the charity must provide the donor with a written acknowledgment of the donation, including the fair market value of any goods or services provided to the donor, if the payment to the charity exceeds $75. This rule applies to fundraising activities where a donor attends a social function, sporting event or other event and provides a donation to the charity; the rule also applies to fundraising activities where the charity provides premiums or incentives to donors if the premium is of more than token value.
Penalties may be assessed against charities that fail to comply with these disclosure requirements and to individuals responsible for the compliance failure.
What donors must do:
While charities are not required to provide acknowledgments of cash contributions, it is a necessary part of building relationships with donors. Donors are now required to retain in their records documentation of all cash, check or other monetary contributions for which they claim deductions. Documentation of contributions less than $250 must be either a bank record or a written acknowledgment from the charity. The documentation must show the name of the recipient charity, the date of the contribution and the amount of the contribution.
For single donations of more than $250 in cash or donations of in-kind contributions valued at more than $250, the donor must have an acknowledgment from the charity. The acknowledgment must show:
- The name of the organization;
- The amount of the cash contribution;
- A description (but not the value) of in-kind donations;
- A statement that no goods or services were provided by the organization, if that is the case; or
- A description and good faith estimate of the value of any goods or services given in return for the contribution, if that was the case.
Much of the text of this article was taken from a website focusing on legal compliance for charities, sponsored by Michigan Nonprofit Association at www.stayinglegalmi.org. The StayingLegalMi website provides introductory information on many legal issues and links to required forms and sources of information on the internet, including information on charitable donations such as vehicle donations, raffles and in-kind donations.
Information also came from the “Charities & Non-Profits” page of the IRS website at www.irs.gov/charities . The following IRS publications provide more detailed information and examples:
- Publication 1771, Charitable Contributions - Substantiation and Disclosure Requirements
- Publication 526, Charitable Contributions
- Publication 561, Determining the Value of Donated Property
- “Can I Deduct My Charitable Contribution?”, one of the EO Web-Based Mini-Courses on a website sponsored by the IRS at www.stayexempt.org.
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*Marion Gorton This e-mail address is being protected from spambots. You need JavaScript enabled to view it is a public policy specialist with the Michigan Nonprofit Association. She is the author of the website Staying Legal in Michigan.
FEATURED ITEMS
Get Connected with ResourceConnect®: Staying Legal for Nonprofits
Tuesday, November 25, 3:30 p.m. - 5:00 p.m.
Detroit, Hannan House, 4750 Woodward Ave.
Join your peers for some networking and an opportunity to learn about legal issues critical to nonprofit success. A representative from Community Legal Resources will give highlights on key legal issues facing nonprofits today. Are you in compliance with state and national laws governing nonprofits? Are you registered to solicit donations? Receive important information to keep your organization accountable and transparent.
Register online for just $10. Phone or fax registration for an extra $5. Contact This e-mail address is being protected from spambots. You need JavaScript enabled to view it (734-998-0160 x 218).
Nonprofit Buzz: Staying Legal
Thursday, November 27, 9:00 a.m.
Tune in to MetroChick Radio's Nonprofit Buzz program online for a lively discussion on the key points of staying legal as a nonprofit organization in Michigan. Diana Kern will host guests Leor Barak of Community Legal Resources and Marion Gorton of the Michigan Nonprofit Association. Ms. Gorton wrote this month's lead story for NEWSNOTES and is author of Staying Legal for Michigan Nonprofits, a dynamic website packed with information on a wide array of legal questions.
Compassion Capital Fund
Thursday, October 30, 9:00 a.m
New Detroit is proud to announce its fifth year award from the Compassion Capital Fund under the U.S. Department of Health and Human Services, Administration for Children and Families. The purpose of the initiative is to support organizations in the areas of leadership development, organizational development, program development, revenue development strategies, and community engagement. New Detroit will be hosting bidders conferences in the coming weeks when organizations can learn the specific details of the initiative. You must register online. First, see eligibility requirements.
Registration instructions in pdf form or as an Online Flash tutorial. Your contact for questions: This e-mail address is being protected from spambots. You need JavaScript enabled to view it (313-664-2044).
Selected Trainings
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Grantsmanship Center: Earned Income Strategies
December 1-3, Mission of Peace Detroit. $575
A 3-day intensive workshop; learn how to generate unrestricted funds. Find more information and registration online or call 800-421-9512. -
Building Your Board
Tuesday, December 2, 3:00 p.m. - 6:00 p.m., Chesterfield Township Library (Macomb County), $55
BoardConnect workshop teaching how to recruit new members and strengthen your board. Discounted for online registration and for MNA and Leadership Oakland members. -
Serving on a Nonprofit Board
Tuesday, December 9, 3:00 p.m. - 6:00 p.m., NEW Center Ann Arbor, $55.
BoardConnect training for individuals seeking board service. Description and registration -
How to Form a 501(c)3 Public Charity in Michigan
Saturday, November 22, 8:30 a.m. - 5:00 p.m., Kellogg Community College, Battle Creek, $45
A comprehensive workshop that will introduce you to the start-up process. Register online -
Webinar: New Form 990: Governance Policies and Procedures
Monday, December 8, 2:00 p.m. - 3:30 p.m. $189
Full description and registration . -
Ability Awareness Training: Including People with Disabilities in to Your Volunteer Programs—2 offerings free of charge:
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Wednesday, December 10, 8:30 a.m. - 12:30 p.m.
The Samaritan Center. 5555 Conner Ave., Detroit -
Thursday, December 11, 8:30 a.m. - 12:30 p.m.
Macomb County (Location to be announced)
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Wednesday, December 10, 8:30 a.m. - 12:30 p.m.
Collaboration Possible!
Do you want to find partners for strategic alliances? Be SMART. Learn more about Strategic Alliances Resource Training, and how they can help your agency. SMART is a collaborative effort of Community Legal Resources, Detroit Executive Service Corps , Michigan Nonproft Association, the Nonprofit Finance Fund and the United Way for Southeastern Michigan. This e-mail address is being protected from spambots. You need JavaScript enabled to view it (248-395-2840) will be happy to provide more information.
Partner with Communities of Hope
Increase the impact and efficiency of your organization by partnering with Communities of HOPE. Communities of HOPE is a new nonprofit that is transforming low-income apartment properties in Southeast Michigan into highly-positive environments where people improve their health, education, financial stability, security and relationships. One part of their mission involves bringing nonprofit organizations on-site to provide services. Collaborate with them to offer your programs with fewer hassles, less overhead, and more simplicity. Learn more.
U of M Students Seek Social Enterprise Projects
Engage a dynamic and knowledgeable team of University of Michigan graduate students from the Ross School of Business to help your organization in early 2009. Utilize these students to develop a potential social enterprise or assist with an existing enterprise project that results in a concrete and implementable product for your nonprofit. Contact This e-mail address is being protected from spambots. You need JavaScript enabled to view it (734-615-2096) for more information and an application form.
Pro Bono Legal Clinic of Interest?
Are you interested in a one-day free legal clinic that would allow you to talk with a lawyer about legal issues affecting your nonprofit? Community Legal Resources (CLR) seeks information from nonprofits that serve disadvantaged communities. CLR would appreciate your input to gauge the level of participation and subject areas of interest.
Please contact This e-mail address is being protected from spambots. You need JavaScript enabled to view it with your interest in this potential opportunity and in which three areas of law you are most interested: employment; employee benefits; corporate; strategic restructuring; tax, real estate; debt/bankruptcy; or liability insurance.
Reminders
- Join the Doyle Fund Leadership Network
- Make sure your organization is included in the Directory of Nonprofit Organizations in Southeast Michigan. Get more exposure for your mission! Use the "update entry" link if information is out of date.
REGULAR FEATURES
Nonprofit Issues: An electronic newsletter of "nonprofit law you need to know."
Twice-weekly e-letters keep you up-to-date with latest developments. Subscribe for an introductory rate of less than $6 a month for 3 months and have access to the whole site that includes ready reference pages and a searchable archive of tips and advice from Dan Kramer.
Bulletin Board
- Reach new heights: St. Francis School, Ann Arbor, has platform staging/risers to give away. They are 4' x 8' sections at varying levels. Contact This e-mail address is being protected from spambots. You need JavaScript enabled to view it (734-821-2111)
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Crain's Nonprofit Wish List
A forum that connects nonprofits in need of non-cash goods and services with companies and organizations that have available resources to give. Nonprofits: post your wishes! Companies: find a home for that photocopier!
