Ben and Mike discuss the private benefit rule that applies to 501(c)(3) organizations, addressing how the private benefit rule is broader than the private inurement and excess benefit transaction rules, examples of how the private benefit rule applies to specific programs, how to assess whether private benefit is "incidental,” and more.

As with many employment policies, enforcing the terms of a sabbatical policy can raise difficult issues and should always be approached with caution and applied uniformly. Potential disciplinary options for employees who don’t comply can include warnings, suspension, or termination. Repayment (i.e. “clawback”) of paid leave and/or forfeiture of other benefits could also be possible if clearly set forth in the organization’s policies. However, going forward you may wish to consider changes to make your sabbatical policy more flexible and easier to administer.

Ben and Mike answer questions from subscribers about adding an Immediate Past President position, Board giving requirements, when related organizations must have consolidated audits, and preparing to receive restricted funds and comply with restrictions by donors and grantors.

This template employee offer letter agreement provides basic terms and conditions that are generally recommended for nonprofit organizations when hiring full-time salaried “W-2” staff who qualify as “exempt” under the Fair Labor Standards Act (FLSA). This sample document covers areas such as such as the employee’s initial title, duties, and salary, workplace expectations, outside business activities, confidentiality obligations, and more.

Ben and Mike discuss the areas covered by SE4N’s Nonprofit Management Annual Reminder Checklist, how this checklists compares with and complements other management tools and resources, assigning responsibility for using the checklist each year, and more.

Internal Revenue Service (IRS) guidance suggests that, in general, Board members and other disqualified persons may participate in a 501(c)(3) organization’s programs without violating the inurement, excess benefit transaction, and other conflict of interest rules so long as they participate in the same manner as the general public. However, caution is warranted because this guidance is limited and may not apply to all situations.

Ben and Mike answer questions from subscribers about the rights of members to access a membership organization's documents, whether small organizations should have an audit committee, addressing auditor findings, and balancing privacy concerns with reporting and disclosure requirements.

Nonprofit organizations have many operational, administrative, and programmatic details to review and evaluate on a regular basis. Some of these details are minor (small but easy to miss) and some are major (large, complex, and extremely important). Missing any one of these details can be a potential tripping hazard and an opportunity to evaluate, make changes, and plan for improvements. Developing and implementing simple management tools like a reminder checklist will enhance review and evaluation processes with little effort.