A strategy for identifying and responding to volunteer risk management issues at Catholic nonprofit organizations. Volunteers are the cornerstone of many Catholic lay apostolates. Often volunteers have as much or more influence and responsibility as full-time employees. Unlike the formal hiring programs used with employees, most volunteer programs are informal, evolving organically according to the organization’s needs. Unfortunately, an approach which is too informal leaves the apostolate and its participants at high risk.

The first whitepaper in this series described the basics of private benefit and private inurement issues for tax-exempt organizations. The second whitepaper explained excess benefit transactions (a specific type of private benefit issue) and their consequences. The third whitepaper described best practices for avoiding excess benefit transactions. This fourth and final whitepaper in the series outlines both what an organization’s leaders should do if they believe an excess benefit transaction occurred and what to expect in the resolution and reporting process.

Part III of a four-part overview of private inurement, private benefit, and excess benefit transactions. The first whitepaper in this series described the basics of private benefit and private inurement issues for tax-exempt organizations. The second whitepaper explained a specific type of private inurement issue, the excess benefit transaction (EBT). The second whitepaper also described how to avoid an EBT and what the consequences are if an EBT takes place. This third whitepaper provides best practices for avoiding excess benefit transactions: (1) using the rebuttable presumption of reasonableness; (2) avoiding automatic excess benefit transactions; and (3) being aware of exceptions to excess benefit transactions.

Part II of a four-part overview of private inurement, private benefit, and excess benefit transactions. The first whitepaper in this series described the basics of private benefit and private inurement issues for tax-exempt organizations. This second whitepaper explains a specific type of private inurement issue, the excess benefit transaction (EBT). This whitepaper also describes how to avoid an EBT and what the consequences are if an EBT takes place.

The challenge, and the opportunity, for every Catholic nonprofit is to make Jesus Christ the center of every decision. For Catholic nonprofits with employees, this challenge is uniquely present in the context of choosing employer-sponsored healthcare options and benefits. An executive of a large Catholic nonprofit once said she believed her organization needed to have a ‘Catholic worldview’ in deciding the healthcare options to offer its employees. She is correct - Catholic nonprofits have an obligation to discern God’s will in determining whether they can afford to financially contribute to their employees’ healthcare needs and, if so, in determining what kind of healthcare plan would best serve their mission. Catholic nonprofits should also understand their employer healthcare obligations, if any, under federal and state law.