This section is dedicated to frequently asked questions by nonprofit managers and board members.
Click on the question to learn more:
- How does a Kansas tax exempt nonprofit corporation apply for property tax exemption?
- What is a simple guideline to follow regarding board member confidentiality?
- Can foreign citizens sit on a nonprofit board of directors?
- Can a church apply to the Internal Reveue Service for 501(c)(3) tax-exempt status?
- On August 23, 2005, newly revised Fair Labor Standards Act (FLSA) regulations went into effect for determining an exempt employee, and the new criteria. What are the new criteria?
- What is USERRA?
- Does any part of the Sarbanes-Oxley Act apply to nonprofits?
- What do nonprofits need to do to comply with the new Federal Communications Commission (FCC) rules on fax communications?
- What are 501(c)(3) organizations prohibited to do in a political campaign on behalf of or in opposition to any candidate for public office?
Disclaimer: The content of "Ask a Question!" is for information purposes only and should not be considered advice - legal or otherwise- for any organization or individual. Although we go to great lengths to ensure our information is accurate and useful, we recommend you consult a professional if you want assurance that our information, and your interpretation of it, is appropriate to your particular situation.
Question: How does a Kansas tax exempt nonprofit organization apply for property tax exemption?
Response: A nonprofit having a tax exempt designation from the Internal Revenue Service can apply for property tax exemption utilizing a formal request to their county appraiser. The Kansas Department of Revenue provides a form that is applicable to all counties in Kansas. The form can be obtained from the Shawnee County website, www.coshawnee.ks.us. After accessing the website, go to APPRAISER, then scroll on the right hand column until you reach forms. Scan the forms for APPLICATION FOR TAX EXEMPTION.
Question: What is a simple guideline to follow regarding board member confidentiality?
Response: Board members should not disclose information about the organization's activites unless those activities are already known by the public or has become a part of public record.
Question: Can foreign citizens sit on a nonprofit board of directors?
Response: According to BoardSource there is no federal or state law that prohibits foreign citizens from sitting on the board of a nonprofit organization. The organization should be certain that the bylaws of the organization do not prohibit foreign citizens as board members and should be certain that the individual is a legal resident of the United States. For more information go to www.boardsource.org.
Question: Can a church apply to the Internal Revenue Service for 501(c)(3) tax-exempt status?
Response: Yes. A church would file for 501(c)(3) tax-exempt status in the same manner as any nonprofit organization, filing form 1023 and including proof of incorporation with the Secretary of State's office and their E.I.N. (Employee Identification Number).
Question: On August 23, 2005, newly revised Fair Labor Standards Act (FLSA) regulations went into effect for determining an exempt employee, and the new criteria. What are the new criteria?
Response: According to information obtained from the Federal Register Web site, three tests will determine whether or not a person qualifies for exempt status: Salary test, Salary Basis test, and Duties test.
- Under the Salary Test, an employee must earn a minimum of $455 per week to meet the requirements for exempt status. Some exceptions exist including teachers.
- An employee must regularly receive a predetermined amount of compensation each pay period to qualify for exempt status under the Salary Basis test.
- Under the Duties test, the new test is similar to the old with two additions: 1) Under the new Executive criteria the individual must have the authority to hire or fire or have his or her recommendation regarding hiring or firing carry significant weight and 2) Under the Learned Professional criteria the employer must determine if the individual's work is predominantly intellectual in character and this includes work that requires the exercising discretion and judgment. No additions were included in the Administrative criteria.
For more information, visit the U.S. Department of Labor Web site at http://www.dol.gov/elaws/flsa.htm
Response: USERRA is the acronym for "Uniformed Services Employment and Reemployment Rights Act of 1994."
USERRA protects the employment rights and benefits of military service members on their return to civilian life. USERRA prohibits employment discrimination or retaliation against past or present members of the uniformed services and applicants to the services.
For more information, visit the U.S. Department of Labor Web site at http://www.dol.gov/elaws/userra.htm
Question: Does any part of the Sarbanes-Oxley Act apply to nonprofits?
Response: Two parts of the law are mandatory for nonprofits and foundations:
- Nonprofits must develop, adopt, and disclose a policy enabling employees who suspect illegal or inappropriate activities in their organizations to report problems confidentially;
- Nonprofits must have a written, mandatory policy on document retention and periodic destruction, including electronic files and voice mail messages.
Note: A sample whistleblower policy and set of recommended document retention guidelines are available to members by contacting Mainstream, Inc.
Question: What do nonprofits need to do to comply with the new Federal Communications Commission (FCC) rules on fax communications?
Response: Effective January 1, 2005, nonprofit organizations will be required to obtain express written permissions to send unsolicited fax advertisements that contain "commercial" content, i.e., promote memberships, products, programs, and services. An established business relationship no longer constitutes permission to send unsolicited commercial faxes. The FCC recommends that nonprofits seek written permission to send faxes to donors, members, constituents, and other parties prior to January 1, 2005. After the new rules become applicable, faxes must include date and time of the fax, legal name of the sender (not the entity that sends the fax), and the telephone and fax number of the sender.
Question: What are 501(c)(3) organizations prohibited to do in a political campaign on behalf of or in opposition to any candidate for public office?
Response: According to the Internal Revenue Service, a 501(c)(3) organization should not:
- Endorse candidates for public office.
- Make contributions to political parties or individual candidates.
- Encourage voting for or against a candidate.
- Participate in political campaigns.
- Rate candidates.
Disclaimer: The content of "Ask a Question!" is for information purposes only and should not be considered advice - legal or otherwise- for any organization or individual. Although we go to great lengths to ensure our information is accurate and useful, we recommend you consult a professional if you want assurance that our information, and your interpretation of it, is appropriate to your particular situation.
Kansas
Non Profit Association
Operated by Mainstream,
Inc.®
P.O. Box 47054 | Topeka, KS 66647
Phone: 800/582-1428 or 785/266-6422
Fax: 785/266-2113 | E-mail: knpa@mainstreaminc.net
