Like everything else in the world, concepts about governance in nonprofit organizations are evolving. In the US corporate world, The Sarbanes-Oxley Act (SOX) represented an attempt to legislate some basic principles designed to protect the interests of stakeholders by directing that the Board is composed of individuals with suitable skills, promotes transparency and ethical behavior, and provides appropriate communication about organization structure and controls.
Nonprofit organizations are subject to numerous federal and state tax filing requirements, including annual tax returns. Most nonprofit organizations are required to file an annual federal tax return (Form 990, 990-EZ, 990-PF, or 990-N); however, state filing requirements are different and vary from state to state. The State of New Jersey (NJ) requires a nonprofit organization to file an annual tax return (initial registration and renewal registration) if it has 501(c)3 tax exempt status, is domiciled in NJ, or solicits NJ residents for a charitable cause.
Most organizations seeking 501c (3) tax exempt status must file an application with the IRS. Until 2014, the only means available to organizations was filing Form 1023: Application for Recognition of Exemption Under Section 501c (3) of the Internal Revenue Code. Preparing this 26 page application is a cumbersome and time consuming process as organizations are required to disclose information in regards to organizational structure, governance, charitable purpose and related activities, sources of funding, and current and prior financial statement data. In addition, organizations are also required to submit their articles of organization and bylaws with the application. The overall process of preparing the application as well as the related recordkeeping can take over 100 hours to complete, followed by an IRS approval process that can take over a year.
On July 9th, 20 of our most adventurous associates, friends and family members participated in the Inaugural Gilda’s Club South Jersey Dragon Boat Festival. We joined about 30 other teams from our region to paddle down the Bay at Bader Field to help raise $90,000 for Gilda’s Club South Jersey. The local chapter of Gilda’s Club offers support to people of all ages dealing with cancer, including a clubhouse known as “Noogieland” for children 4 to 12 years old.
It was the first time rowing for most of us but a wonderful time was definitely had by all. We even recruited a young man to be the Drummer in our boat. Most of all, we were all humbled and grateful that we could take part and help raise money for such a worthy cause. We are looking forward to next year’s Festival, and we hope to improve on our rowing times from this year.
This May, Capaldi Reynolds & Pelosi designated Fridays as Dress Down Day For A Cause. Each employee would have the privilege of wearing jeans for the fee of $5 per week. Proceeds collected for the month would be donated to a charity of our choice. The first charity that will receive our monthly collections is Gilda’s Club of South Jersey. Through the participation and generosity of our staff, we were able to raise $685. We are looking forward to continuing this new tradition as the charity that we will raise funds for in June will be CASA or Court Appointed Special Advocates of New Jersey. Participants also receive a chance to choose the charity that we will collect for each time they participate. A raffle will be drawn prior to the beginning of each month to select our next charity. Feel free to join us in our monthly giving by dropping off a check next time you are in.