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Questions Answered by Matthew Morris
1 Answer | Asked in Business Law and Gov & Administrative Law for Pennsylvania on
Q: PA registration for a nonprofit bringing in less than $25k annually in contributions.

I spoke with a clerk at the Charities division of the Pennsylvania Department of State who told me that because our nonprofit brings in less than $25k in annual contributions, we’ve actually never even come close with $8k being the most, we do not need to register or file with the state of PA... View More

Matthew Morris
Matthew Morris
answered on Feb 15, 2024

There are two things going on here, and because Pennsylvania deals with them a bit differently than California does, it is a change to what you are used to.

All states have some form of keeping track of the corporations and other business entities that are based in their state. That applies...
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1 Answer | Asked in Business Law for Pennsylvania on
Q: If a CA nonprofit has filed its statement of domestication with PA, dies it need to file new articles of incorporation?

We did completely dissolve in CA and upon further review, it looks like the PA form that we filed is a combination of a Statement of Domestication DSCB:15-375 and new Articles of Incorporation DSCB:15-1306. We have drawn up new PA bylaws to replace our CA bylaws and are starting to register our npo... View More

Matthew Morris
Matthew Morris
answered on Feb 7, 2024

Depending on the specifics of your case, it would probably be advisable to draw up amended articles of incorporation and new bylaws for the Pennsylvania nonprofit. This is because Pennsylvania's laws and California's nonprofit laws are not identical, and it is likely that when your... View More

2 Answers | Asked in Business Law for California on
Q: Can my nonprofit give to my small business if they are related?

I have a animal welfare nonprofit where I raise money for animals shelters and sanctuaries and we advocate for a vegan lifestyle. Instead of me taking a paycheck can I have the non profit give my vending machine business donations since I only put vegan items in my machine. The money would be... View More

Matthew Morris
Matthew Morris
answered on Dec 29, 2023

Probably not. I assume from your description of the nonprofit's mission that this is a 501(c)(3) and is incorporated in California as a charitable public benefit organization.

This is an example of what the IRS would call "private inurement." An organization can only be a...
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2 Answers | Asked in Employment Law and Business Law for California on
Q: Can my Non-Profit pay me?

I am a independent contractor for grant writing and other services. I am starting a non profit. Can the non profit pay me a independent contractor when I get a grant approved for the non profit?

Matthew Morris
Matthew Morris
answered on Sep 6, 2023

Your question raises the questions of "private inurement" and "self-dealing." One can be taken care of with careful planning, one could result in major penalties from the IRS.

You mention that you are grant writer, which leads to me believe that your potential nonprofit...
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1 Answer | Asked in Business Law for Arkansas on
Q: Can you help me find an attorney who specializes in nonprofit organizations? There is no state association in Arkansas.

A Google search turns up injury lawyers, criminal and family lawyers, but not even one that specializes in business law and there is no state association of nonprofits in Arkansas. We are looking for someone to turn to in order to stay current on laws concerning nonprofits and/or to serve on our... View More

Matthew Morris
Matthew Morris
answered on Aug 21, 2023

Here are some options for you to find a nonprofit organization attorney who might be able to help.

First, you might refine your Google technique. Try specifically searching for a "nonprofit organization attorney." That might filter out some of the criminal lawyers and family...
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1 Answer | Asked in Business Law and Real Estate Law for Indiana on
Q: If HOA Board resigns en masse, effective immediately, can they rescind resignations without homeowners approving?
Matthew Morris
Matthew Morris
answered on Jul 24, 2023

You probably need to look at a couple documents and a couple provisions of the law to know what legal effect the mass resignation caused.

First, find copies of your governing documents. If your HOA is a corporation (most are), you are looking for your Articles of Incorporation and your...
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1 Answer | Asked in Business Law for Mississippi on
Q: A golf course board of directors had a meeting that 4/5 members knew it was the fire the superintendent but the other

Member ( the president) was told it was about equipment . Is that legal ?

Matthew Morris
Matthew Morris
answered on Jul 20, 2023

You will want to consult with Articles of Incorporation and the Bylaws to know whether this was permitted. The law only says that "regular" meetings of the board "may be held without notice of the date, time, place or purpose of the meeting" unless the articles or bylaws have a... View More

1 Answer | Asked in Business Formation and Business Law for Tennessee on
Q: can the treasurer of a non profit, an officer of the corporation, also serve on the board of directors? State is TN
Matthew Morris
Matthew Morris
answered on Jul 20, 2023

There is nothing to prevent the treasurer from serving on the board of directors in Tennessee, assuming that there is nothing in the bylaws that would prevent this.

The only requirement for serving on the board under the Tennessee Nonprofit Corporation Act is that “All directors must be...
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3 Answers | Asked in Business Law and Contracts for California on
Q: Can a non profit give to the CEOs side business?

I'm on the board of a animal welfare/rights organization and the CEO has a side business where he only provides foods that our vegan. Can the non profit where he is the CEO/President give to his food service since it involves not eating animals to go towards his food business if all of the... View More

Matthew Morris
Matthew Morris
answered on Jul 10, 2023

There are several issues at play here, and not enough information to give a complete answer. But here are some thoughts.

You ask whether the nonprofit can "give" to the CEO's business. What do you mean by "give?" If the nonprofit is granting money to a for-profit...
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2 Answers | Asked in Business Formation and Business Law for Florida on
Q: I have an existing LLC in the state of Florida. Can it be converted to a non-profit? It is an arts organization.

Performing Arts Theatre. Live shows. Educational and Community.

Where would I find the procedure if this is a possibility.

Matthew Morris
Matthew Morris
answered on Jul 3, 2023

It is very difficult to function as a nonprofit and also as an LLC. The essential nature of an LLC is that the money left over at the end of the year gets distributed to the members, who are essentially the owners of the LLC. The essential nature of a nonprofit is that nobody is allowed to get the... View More

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1 Answer | Asked in Employment Law, Tax Law and Business Law for Indiana on
Q: Can volunteer bartenders working on behalf of a 501c3 accept tips from customers?

I work as a bar manager (as a paid employee) for a nonprofit 501c3 organization that hosts a theatre festival every summer. During the festival we have a handful of volunteer bartenders. We have run into an issue where the jars put out in the past have always been claimed by the organization as... View More

Matthew Morris
Matthew Morris
answered on Jul 3, 2023

You have an interesting question, and a full answer would require looking at individualized details of your organization and the people who are both working and volunteering for it. But here are some things that you might consider.

As you point out, the general rule is that tips left for an...
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1 Answer | Asked in Business Law for New York on
Q: Can members make motions at an annual meeting of a nonprofit corporation? Our board says no.
Matthew Morris
Matthew Morris
answered on Jul 2, 2023

You will want to look at the certificate of incorporation and the organization's by-laws.

Under New York law, the by-laws "may contain any provision relating to ... the rights or powers of its members." In general, New York law recognizes that the members may vote for the...
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1 Answer | Asked in Business Law for Missouri on
Q: Does a chamber of commerce have to follow Sunshine Law (posting meetings, etc) since receive monthly payments from city?

Do we have to follow Sunshine Law in respect to posting meeetings, request for documents (copy of meetings, etc) given that we receive monthly payments from our local city government and have received federal grant money in the past?

Matthew Morris
Matthew Morris
answered on May 2, 2023

The answer to this question will depend on looking closely at the facts of the chamber's relationship with the city. The receipt of some payments or grants, by itself, is not the issue. The question is the relationship between the chamber and the city.

Under Missouri law, the Sunshine...
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1 Answer | Asked in Business Law for Florida on
Q: Can the board of directors of a Florida 617 Not for Profit Corporation vote via email or do they need unanimous consent?

The Board of Directors held many properly noticed meetings regarding the creation of Covenants, Conditions and Restrictions, but the Chairman decided to hold a vote via email instead of properly noticing and holding a meeting to pass what was supposed to be the FINAL document. Most of the Board... View More

Matthew Morris
Matthew Morris
answered on May 2, 2023

Unfortunately, the email vote is not valid under Florida's nonprofit corporations act because there was not unanimous consent.

Florida allows board action to be taken in three ways: (a) a physical (in person) meeting, (b) a meeting by electronic communication "through the use of,...
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1 Answer | Asked in Business Formation and Business Law for Florida on
Q: Local Tax Exempt Organization - how should a Board of Directors be constructed? Worried about losing control of entity.

Local Tax Exempt Organization IRS 501(c)(3) - how should a Board of Directors be constructed? I am worried about losing control of entity. What defensive measures can be instituted to prevent loss of voting control? I am the founder of the entity. This will be a big entity someday- tremendous... View More

Matthew Morris
Matthew Morris
answered on May 2, 2023

You ask a question that many founders of nonprofits ask. And lawyers who work with nonprofits inevitably deal with the situation that you fear: a board of directors who develop a different view of the direction to take the organization than the founder's view, resulting in strife and board... View More

2 Answers | Asked in Business Law and Business Formation for North Carolina on
Q: Are there other options for starting an animal shelter/rescue besides 501c3? I don’t have 3 unrelated board members
Matthew Morris
Matthew Morris
answered on May 2, 2023

The requirement for three unrelated directors is not a hard and fast rule. It is true that the IRS's Technical Guidance (the internal document that IRS uses to guide its revenue agents if they find themselves auditing a 501(c)(3)) teaches their agents that a small board of related people might... View More

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2 Answers | Asked in Business Law for California on
Q: Can a chamber of Commerce charge an hourly rate or fee to produce docs and records under Section 1602 of the CA Corp

A disgruntled board member is asking for an ungodly list of documents, photographs, financial records, minutes, member rosters etc. because he is upset about something that happened a year ago. This is diverting the chambers focus away from helping the community and we are now spending all of our... View More

Matthew Morris
Matthew Morris
answered on May 2, 2023

This is a nuanced question. But to summarize the following: (a) he probably does not have a right to inspect and copy under Section 1602; (b) but he does have a right to inspect and copy under a different section (Section 6334); (c) you probably are not required to make copies for him, and can... View More

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1 Answer | Asked in Business Law for Florida on
Q: I have a 501(c)3 registered in the state of Indiana. I need to move to Florida . How difficult is it to transfer.

I don't have anyone to become an agent to receive mail etc. The organization's bank acct is also in Indiana. What would be the cost and difficulty to make the transfer of the organization from IN to FL? Any other suggestions?

Matthew Morris
Matthew Morris
answered on Mar 29, 2023

You basically have two choices. The first option is to start a new not for profit in Florida and wrap up the Indiana nonprofit. The second option is to leave the Indiana nonprofit in place and to file paperwork with the Florida to operate as a "foreign not for profit" in Florida. Which... View More

2 Answers | Asked in Business Formation, Business Law and Public Benefits for California on
Q: Can a CA Nonprofit Public Bene Corp use proxies to meet a quorum & to actions? & use unanimous consents in lieu of mtgs?

CA Corp Code 5510 + seem to allow proxies to achieve a quorum and to take actions "if allowed"

5516 allows for unanimous consent "if allowed"

Does this mean if the by-laws permit, both can be so used? Thx

Matthew Morris
Matthew Morris
answered on Mar 14, 2023

The general rule for public benefit corporations is that "Any member may authorize another person or persons to act by proxy with respect to such membership." Corp Code Sec 5613(a). However, that section says that "this right may be limited or withdrawn by the articles or bylaws,... View More

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1 Answer | Asked in Business Law for Georgia on
Q: What financial statements are required to give members of our non profit 501(c) 4 club in Georgia?

A member is requesting FY2021 Annual Financial report, all financial records for FY22 including incoming funds, and outgoing funds (checkbook stubs/ledger), money market balance, and "bottom line" total assets as of now (checking, money market, CD's and anything else).

Matthew Morris
Matthew Morris
answered on Mar 8, 2023

Let's start with the FY21 financial report. Under Georgia law, a nonprofit corporation "shall furnish" a member with a copy of "its latest prepared annual financial statements ... in reasonable detail as appropriate, that include a balance sheet as of the end of the fiscal year... View More

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