In addition to maintaining a gift acceptance policy, a nonprofit should also maintain a charitable gift receipt template that it fills out and gives to a donor once it accepts a gift (both cash and in-kind gifts). Donations to tax-exempt organizations should only be deducted on a donor’s federal income tax return if the donor receives a receipt from a tax-exempt organization that serves as evidence that the donor contributed to a tax-exempt organization.

All nonprofits should adopt certain corporate policies, including a gift acceptance policy. A gift acceptance policy describes the types of gifts that a nonprofit is, and is not, willing to accept – a nonprofit may not have use for an obsolete computer, a vehicle that does not start,1 or a gift with too many strings attached. Some potential gifts might even cause a nonprofit more harm than the gift is worth (e.g., the expensive maintenance of an old boat). Such a policy notifies a nonprofit’s members, board of directors, officers, employees, and volunteers of the gifts that the nonprofit will accept when potential donors inquire about making donations, thus preventing the nonprofit from receiving undesired gifts.

When acting as a director or officer, there are some situations when one can be subject to personal liability for one’s actions. If uninsured, one lawsuit can have a huge impact on a nonprofit organization. Luckily, Directors and Officers insurance (“D&O insurance”) allows for a way to mitigate the damage in scenarios like this.

In recent years, nonprofit organizations have faced a surge in government investigations, ranging from state attorney general inquiries into potential violations of charitable solicitation laws to U.S. Department of Justice investigations into alleged failures in nonprofit tax compliance. Congressional committees have also launched investigations into conflicts of interest within nonprofit entities. How a nonprofit responds to a government inquiry, whether a routine regulatory review or a criminal investigation, can significantly affect its operations, reputation, and ability to raise funds. This guide offers an overview of common government investigations and provides strategies to help organizations navigate the process effectively.

State constitutions can be a sword wielded against religious nonprofits, or a shield to guard against overreaching government. Understanding how can be a key to preserving corporate and nonprofit status and protecting religious liberty and conscience.