Recently I had the pleasure of presenting on the legal and financial duties of nonprofit boards at the Iowa Museum Association. One of my main core services is nonprofit formation and compliance, and a nonprofit’s board of directors (or supervisors, depending on what they’re called) is essential to both of those categories.
Had a great time speaking with the wonderful people at the #Iowa #Museum Association on the legal & financial duties of #nonprofit boards, earlier this week! 👨🏼💻👨🏼💼#presentation #GFLF #boardroom #nonprofitlaw
When submitting a 501(c)(3) application (or a different type of tax exempt application), the IRS almost always requires at least three distinct individuals be listed on the board of directors. In terms of compliance, the nonprofit board is the governing body of the organization and therefore has distinct duties and obligations to the corporation.
Each nonprofit organization is unique and consequently, each nonprofit benefits from individualized counsel on how to maximize board operations. But, there are general guidelines of good advice that apply across the board. (Ha! Get it?) To that point, I’ve created a resource explaining board duties, best practices, and legal and financial responsibilities that most all nonprofits will find useful. If you’re a nonprofit leader (such as an executive director) you could even print this out and include it in board orientation materials and board handbook.
When most people use the word “property,” they typically mean real estate or land, such as: “She owns 50 acres of property in Harrison County.” But, for estate planners, the word property has a much broader meaning. For estate planners, property is what we lawyers call a “term of art.” A term of art is a word or phrase that has a specialized, specific meaning within a particular field (such as the legal profession). Terms of art are abundant in the law; other legal terms of art you may have heard of include “double jeopardy,” “burden of proof,” and “punitive damages.”
Two Broad Classifications
There are two broad classifications of property—real property and personal property. Real property includes land and whatever is built on the land or attached to it. It includes buildings (like houses and grain silos), fences, tile lines, and mineral rights, for example.
Personal property is best described by what it is NOT. Anything and everything that is not real property, is then personal property. It can be easiest to think of this in terms of movability. Typically real property cannot be picked up and moved. Yes, you could dig up dirt from your plot of land and move it to your neighbor’s plot of land, but you cannot actually “move” the land. And, sure, you could argue that you could move a shed from one corner of the yard to another, but not easily.
To drive this point home, let’s think about that shed. Let’s say I want to build a shed. The lumber, tools, and paint I brought to the site to build the shed are personal property; the shed itself is real property.
Intangible and Tangible Property
Personal property is broken down into tangible property and intangible property. Tangible personal property has physical substance and can be touched, held, and felt. Examples of tangible personal property are numerous, just a few examples are furniture, vehicles, baseball cards, cars, comic books, jewelry, and art.
Intangible personal property includes assets such as bank accounts, stocks, bonds, insurance policies, and retirement benefit accounts.
Your computer is tangible property. But, it may contain intangible property which could well have monetary value, such as a document containing a recipe you wrote on how to bake a better apple pie, or a software you programmed.
This quiz, and overall discussion about property, sparks a big question…
What Happens to Your Property When You Die?
When you die, what happens to your property depends in large part on whether you have a will (as a part of a complete estate plan) or not. If you have a will, then your property will pass to your beneficiaries just as you intended. An exception: some intangible personal property, such as retirement and bank accounts, have beneficiary designations. Such property will pass to its intended beneficiary without a will. (Don’t forget a beneficiary designation trumps what’s written in a will, if there is any discrepancy between the two.)
If you die without a will, you are leaving it up to the Iowa intestacy laws to decide who will receive your property. Decisions as to who of your heirs at law receive your property will be made without any regard as to what you may have wanted, or may have not wanted, if you would have had a say in the matter. Long story short, it’s a good idea to put an end to the excuses and enlist a qualified estate planner to draft your personalized, quality estate plan.
Whether it’s real or personal, tangible, or intangible, act now to protect and prepare your property for the future. Get an estate plan. You can reach me most easily by email at gordon@gordonfischerlawfirm.com or call my cell, 515-371-6077. Don’t delay—write or call today.
https://www.gordonfischerlawfirm.com/wp-content/uploads/2018/07/Screen-Shot-2018-07-24-at-1.25.05-PM.png6901020Gordon Fischerhttps://www.gordonfischerlawfirm.com/wp-content/uploads/2017/05/GFLF-logo-300x141.pngGordon Fischer2018-07-23 11:52:302020-05-18 11:28:53Legal Words of the Day: Tangible Property & Intangible Property
The Regional Regulatory Reform Roundtables will be a chance for small business owners and operators to share their regulation concerns with SBA Office of Advocacy senior staff.
As stated by the SBA Office of Advocacy, the Regional Regulatory Reform Roundtables will have the following goals:
Identify regional small business regulatory issues in order to assist agencies with regulatory reform and reduction in compliance with Executive Orders 13771 & 13777;
Compile crucial information for Advocacy’s new report on existing small business regulatory burdens across the nation, identifying specific recommendations for regulatory changes based upon first-hand accounts from small businesses across the country; and
Inform and educate the small business public as to how Advocacy and SBA can assist them with their small business goals
What is the SBA Office of Advocacy?
The SBA Office of Advocacy is an independent office that wears many hats in representing the needs and concerns of U.S. small businesses before the federal government, judicial system, and in working with state policymakers. For instance, the Office serves as a source of small business statistics and acts as a watchdog for the Regulatory Flexibility Act.
What does GFLF have to do with small business owners?
Beyond passing along events and opportunities such as this, Gordon Fischer Law Firm works with Iowa business owners to help them put in place sound succession and estate plans. Whether it’s a tax-exempt or for-profit, GFLF can help leaders of Iowa entities ensure their operations are set-up for success in the future.
Questions? Comments? Don’t hesitate to contact GFLF.
Best Board Ever: Your Nonprofit Needs this Free Guide
NonprofitsRecently I had the pleasure of presenting on the legal and financial duties of nonprofit boards at the Iowa Museum Association. One of my main core services is nonprofit formation and compliance, and a nonprofit’s board of directors (or supervisors, depending on what they’re called) is essential to both of those categories.
When submitting a 501(c)(3) application (or a different type of tax exempt application), the IRS almost always requires at least three distinct individuals be listed on the board of directors. In terms of compliance, the nonprofit board is the governing body of the organization and therefore has distinct duties and obligations to the corporation.
Whether just starting out or continuing a long-standing tradition of operational excellence, it’s essential your nonprofit’s board know their responsibilities, understand their fiduciary role, and implement best practices. This goes for the board of directors as a collective body, as well as each of the individual directors.
Each nonprofit organization is unique and consequently, each nonprofit benefits from individualized counsel on how to maximize board operations. But, there are general guidelines of good advice that apply across the board. (Ha! Get it?) To that point, I’ve created a resource explaining board duties, best practices, and legal and financial responsibilities that most all nonprofits will find useful. If you’re a nonprofit leader (such as an executive director) you could even print this out and include it in board orientation materials and board handbook.
Download your copy of the “Best Board Ever” guide here!
Questions? Thoughts? Need a speaker to present on a topic related to nonprofit formation and guidance or employment law? Don’t hesitate to contact Gordon via email at gordon@gordonfischerlawfirm.com or by phone at 515-371-6077.
Legal Words of the Day: Tangible Property & Intangible Property
Legal Word of the Day, Wills, Trusts & EstatesWhen most people use the word “property,” they typically mean real estate or land, such as: “She owns 50 acres of property in Harrison County.” But, for estate planners, the word property has a much broader meaning. For estate planners, property is what we lawyers call a “term of art.” A term of art is a word or phrase that has a specialized, specific meaning within a particular field (such as the legal profession). Terms of art are abundant in the law; other legal terms of art you may have heard of include “double jeopardy,” “burden of proof,” and “punitive damages.”
Two Broad Classifications
There are two broad classifications of property—real property and personal property. Real property includes land and whatever is built on the land or attached to it. It includes buildings (like houses and grain silos), fences, tile lines, and mineral rights, for example.
Personal property is best described by what it is NOT. Anything and everything that is not real property, is then personal property. It can be easiest to think of this in terms of movability. Typically real property cannot be picked up and moved. Yes, you could dig up dirt from your plot of land and move it to your neighbor’s plot of land, but you cannot actually “move” the land. And, sure, you could argue that you could move a shed from one corner of the yard to another, but not easily.
To drive this point home, let’s think about that shed. Let’s say I want to build a shed. The lumber, tools, and paint I brought to the site to build the shed are personal property; the shed itself is real property.
Intangible and Tangible Property
Personal property is broken down into tangible property and intangible property. Tangible personal property has physical substance and can be touched, held, and felt. Examples of tangible personal property are numerous, just a few examples are furniture, vehicles, baseball cards, cars, comic books, jewelry, and art.
Intangible personal property includes assets such as bank accounts, stocks, bonds, insurance policies, and retirement benefit accounts.
Pop Quiz!
Can you classify the following as real property, tangible personal property, or intangible personal property?
Your Twitter account.
This is intangible personal property. Yes, your social media presence and digital accounts are intangible property. (Don’t forget to account for this property in your estate plan!)
Your IRA.
Again, this is intangible property.
Farmland, including its silos and fences.
Real property.
Your comic book collection.
Tangible property!
MacBook Air laptop computer.
Your computer is tangible property. But, it may contain intangible property which could well have monetary value, such as a document containing a recipe you wrote on how to bake a better apple pie, or a software you programmed.
This quiz, and overall discussion about property, sparks a big question…
What Happens to Your Property When You Die?
When you die, what happens to your property depends in large part on whether you have a will (as a part of a complete estate plan) or not. If you have a will, then your property will pass to your beneficiaries just as you intended. An exception: some intangible personal property, such as retirement and bank accounts, have beneficiary designations. Such property will pass to its intended beneficiary without a will. (Don’t forget a beneficiary designation trumps what’s written in a will, if there is any discrepancy between the two.)
If you die without a will, you are leaving it up to the Iowa intestacy laws to decide who will receive your property. Decisions as to who of your heirs at law receive your property will be made without any regard as to what you may have wanted, or may have not wanted, if you would have had a say in the matter. Long story short, it’s a good idea to put an end to the excuses and enlist a qualified estate planner to draft your personalized, quality estate plan.
Whether it’s real or personal, tangible, or intangible, act now to protect and prepare your property for the future. Get an estate plan. You can reach me most easily by email at gordon@gordonfischerlawfirm.com or call my cell, 515-371-6077. Don’t delay—write or call today.
SBA Office of Advocacy Iowa Regional Regulatory Reform Roundtables
Events, From Gordon's Desk...An opportunity for Iowa small business owners came across my desk that I want to share with as many people as possible!
The Small Business Administration (SBA) Office of Advocacy is hosting a series of free, public roundtables across the U.S. They have three upcoming opportunities for Iowans.
The schedule is as follows:
Council Bluffs, IA – Tuesday, July 17
Time: 8:30 AM – 12:30 PM CDT
Location: Mid-America Center, 1 Arena Way, Council Bluffs, IA 51501
Link to register
West Des Moines, IA – Wednesday, July 18
Time: 8:30 AM – 12:30 PM CDT
Location: Drury Inn & Suites West Des Moines, 5505 Mills Civic Parkway, West Des Moines, IA 50266
Link to register
Dubuque, IA – Thursday, July 19
Time: 8:30 AM – 12:30 PM CDT
Location: Holiday Inn Dubuque/Galena, 450 Main St., Dubuque, IA 52001
Link to register
What’s the purpose of these roundtables?
The Regional Regulatory Reform Roundtables will be a chance for small business owners and operators to share their regulation concerns with SBA Office of Advocacy senior staff.
As stated by the SBA Office of Advocacy, the Regional Regulatory Reform Roundtables will have the following goals:
What is the SBA Office of Advocacy?
The SBA Office of Advocacy is an independent office that wears many hats in representing the needs and concerns of U.S. small businesses before the federal government, judicial system, and in working with state policymakers. For instance, the Office serves as a source of small business statistics and acts as a watchdog for the Regulatory Flexibility Act.
What does GFLF have to do with small business owners?
Beyond passing along events and opportunities such as this, Gordon Fischer Law Firm works with Iowa business owners to help them put in place sound succession and estate plans. Whether it’s a tax-exempt or for-profit, GFLF can help leaders of Iowa entities ensure their operations are set-up for success in the future.
Questions? Comments? Don’t hesitate to contact GFLF.