Two New California Laws Benefit Nonprofits


In January 2013, two new laws went into effect directly supporting nonprofit organizations (NPOs). Both are intended to aid organizations in maintaining compliance with state regulations.

SB 1341 allows nonprofit organizations that have neglected to file required reports with the Attorney General to correct their delinquent status before being penalized.

AB 2641 requires the Governor’s Office of Business and Economic Development (“GO-Biz”) to post on its website information assisting individuals in setting up nonprofit corporations and in maintaining compliance with state requirements.

SB 1341 Previously, the law permitted the Franchise Tax Board (“FTB”) to revoke the state exemption of a charity that had failed to file and required that the organization pay the minimum franchise tax of $800 for each year that its exempt status was revoked. Loss of state exemption could cost thousands of dollars in back taxes, as well as taxes on future activities while the exempt status is revoked.

AB 2641 The bill further mandates that the website contain direct links to information on the incorporation, registration, and renewal requirements of specified state agencies. Consolidating the various state regulations in one place is intended to have a similar effect as SB 1341, making filing and fee requirements more readily accessible to small charities operating without the benefit of legal counsel.

This information was provided by the San Diego Foundation, a leading resource of information about charitable giving and community needs.

Event Reminder:

Plumb and First Republic Bank invite you to a free lunch and learn workshop, featuring speaker Paul Dostart, Esq. Register here.

Join us for a complimentary lunch and informative discussion for those serving in the nonprofit sector as Board Members, Board Chairman, or Executive Director.

Topic:

Nonprofit Governance – It Can Get Personal

Learn:
•What are the duties of Directors?
•Learn how to avoid personal liability for Directors.
•Find out the duties regarding restricted funds.

Speaker:

Paul Dostart, Esq

Dostart, Clapp & Coveney LLP

Paul represents tax-exempt organizations, principally in the scientific research, educational, and health care sectors. He also advises for-profit businesses on general corporate matters, including corporate organization, finance, and mergers and acquisitions. He has served as an adjunct professor of taxation law for the USD School of Law for over 25 years. His lecture credits include dozens of business and professional groups

Register today, seats are filling up fast!