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September calendar

Recently my social media feeds were alight with friends and family member’s grinning kiddos holding signs announcing their first day of a new grade. It made me nostalgic! While I wouldn’t want to repeat law school all over again, I do think it’s never too late to head back to the classroom—proverbial or real. So, the GFLF is heading back to school with lessons in English (like legal words/phrases of the day), reading (GoFisch book club) history, finance and the like. Today’s lesson on planned giving crosses over between business and economics, and it’s super important for donors of all gift amounts and nonprofit pros alike.

Back to school

What is planned giving?

Planned giving is the process of charitably donating planned gifts. A planned gift is a charitable donation that is arranged in the present and allocated at a future date. A planned gift is often, but not always, donated through a will or trust. (I would say this is true 80-90% of the time; put another way, planned gifts are bequests 80-90% of the time). As such, planned gifts are very often granted after the donor’s death.

Besides charitable gifts made through wills and trusts after death, other planned gifts include charitable gift annuities; charitable remainder trusts (along with the entire alphabet soup of CRATS; CRUTS; NIMCRUTS; FLIPCRUTS; etc.); charitable lead trusts, and remainder interest/life estates in real property. All these gifting tools/techniques/vehicles I’ve discussed previously, sometimes numerous times.

What is a Nonprofit?

  • You give $20 to a person you meet on the street who lost his bus ticket home.
  • At your local gas station, there is a collection jar for a local child with leukemia. You donate your change.
  • You leave money in your will for your niece Jane, hoping she uses it to continue her collegiate studies in engineering.
  • You have a neighbor who suffers from dementia. You and your friends decide to have an informal walk to raise awareness about the disease and raise money for your neighbor’s health care needs.

While noble, these are not examples of “charitable giving,” as we use the term here. In this context, we are talking about charitable giving to an organization formed under 501c3 of the Internal Revenue Service Tax Code. A 501c3 agency can be known by several terms in general usage, including “nonprofit organization” and “public charity.” For simplicity’s sake, we’ll use the term nonprofit throughout.

Nonprofits cover an extremely broad swath of types of organizations, including schools, churches, hospitals, museums, social services organizations, animal welfare groups, and community foundations.

Nonprofits Must Embrace Planned Gifts

Sometimes nonprofits are overwhelmed at the thought of expansive planned giving because of the number and complexity of some of the planned giving vehicles. How does this match up when you want to donate a less obvious gift than cash, such as stocks and bonds or grain? Nonprofits need to expand their ability to accept gifts of many varieties for at least three reasons:

Craft Beer Factor

The first reason I call the “craft beer factor.” (Bear with me here for a moment). I’m old enough to remember when there were just two kinds of beer. Don’t believe me? You should, as it was immortalized in one of the most famous advertising campaigns of all time–“tastes great, less filling!” This ad campaign strongly implied there were really just two types of beers.

craft beer on table

Then came the craft beer movement. I’m not sure whether craft beers were a response to consumers, or whether craft beers created a demand; presumably both. In any case, now a place like Toppling Goliath Brewing Company in Decorah, Iowa, has about thirty varieties of beers (this is based on an informal count from their website).

Now any retail establishment which sells beer must offer lots and lots of different kinds of beer. Any retail establishment which isn’t able to offer its customers wide variety risks irrelevance, or worse.

This is true not just of beer, but of everything. Another quick example– McDonald’s has around 145 menu items, that’s up from about 85 items in 2007. Also, McDonald’s now offers breakfast items not just in the morning, but all day-long.

Consumers want what they want, when they want, how they want.

Donors expect and often demand the opportunity to use many different options to assist their favorite charities. No longer can nonprofits simply ask folks to pony up cash, or just accept credit cards. Donors want to be able to converse with their fave charity and discuss using their whole portfolio. Nonprofits need to be able to accept, and intelligently discuss, gifting of many different types of non-cash assets.

A nonprofit which doesn’t offer its supporters a wide variety of giving options risks irrelevance, or even worse fates! So, as a donor, if you’re interested in donating an asset that your favorite nonprofit doesn’t typically facilitate, connect them with an experienced nonprofit attorney to make the gift a reality.

Planned Gifts Consist Overwhelmingly of Bequests

Second, planned giving is still mostly about wills and trusts. As already stated, I estimate 80-90% of planned gifts are bequests. Simple! Nonprofits should put substantial efforts to encouraging increased, larger testamentary bequests. Donors who already have an estate plan, but didn’t realize they could designate their favorite organizations as beneficiaries should contact an estate planning attorney.

Everyone can Understand Planned Giving!

Be it strategies for a monthly giving program or facilitating complex planned giving vehicles like NIMCRUTs, the opportunities for continuous learning about different planned giving technique are seemingly endless! And, there are so many different options, that all donors should feel great about supporting their fave causes with tax-wise gifts that work best for them. I strive to offer free information that breaks down different aspects of planned giving in human terms, as well as promoting community opportunities/events for nonprofit professionals.

heart on blue wood

Still need help understanding planned giving or any particular tool or technique? Want assistance coordinating a complex gift? Reach out to me anytime. I offer a free one-hour consultation to anyone and everyone. You can contact at my email (gordon@gordonfischerlawfirm.com) or on my cell (515-371-6077). I’d truly love to hear from you.

calendar on desk

Beyond my own information and resources I love offering Iowa nonprofits for free (like this board responsibilities handout or this nonprofit formation guide), I like to call attention to all the awesome events, awards, and grants available. There are so many great opportunities for Iowan nonprofit pros, board members, volunteers, and donors, that range from conferences to workshops, and grant applications to award nominations. But, life is busy, and it can be hard to keep track of what you should register for or put on your calendar. That’s why I compiled a list for your convenience:

Learning Events & Trainings

Awards

  • The AARP is accepting nominations for the 2018 Andrus Award for Community Service. AARP’s most-prestigious volunteer tribute recognizes outstanding individuals who are sharing their experience, talents and skills to enrich the lives of others.
    Nominations are due August 10.

Grants

  • Storey Kenworthy Foundation for Giving is accepting grant applications for five $5000 awards. The scope of giving priorities includes: “Honoring our Heroes, Medical Research and Support, Children & Education.” Application period available through August 31.
  • Nonprofits that on families, education or the environment are invited to apply for a grant from the Alliant Energy Foundation. Applications are accepted through September 1.
  •  Tourism-related entities (including nonprofits) based in Iowa can apply for the Iowa Tourism Grant Program. Awards range from $500 to $5,000 and require a 25% cash match. There is $150,000 available for the fiscal year 2019 grant cycle. Applications are due September 12.
  • The Mortimer & Mimi Levitt Foundation launching a grant opportunity for small to mid-sized towns and cities. Up to 15 grantees will be awarded $25,000 each in matching funds to produce their own free outdoor concert series. The prospective series should feature a diverse line-up of quality entertainment for people of different ages and backgrounds. Finalists are chosen through online public voting. Grant applications are due by September 25.

hands on phone with calendar app

There are so many great events and opportunities for nonprofits that there is no doubt I missed some in the list above. Please feel free to add applicable events for August and September in the comments below! If you would like to notify GFLF of any upcoming nonprofit-focused events and opportunities in the coming months, don’t hesitate to email GFLF’s Chief Content Officer at mackensie@gordonfischerlawfirm.com.

shaking hands over interview table

As a candidate for a job, we all remember those pre-interview jitters. You’re worried you’re going to say something awkward, fail to demonstrate your aptitude and experience, or show up at the wrong time in the wrong place. Maybe your resume has grammatical errors, or you’ll have food stuck in your teeth. And, then there’s that anxious thought that you may completely freeze up when asked a question!

But, the interview is not just a daunting affair for the prospective candidate. On the other side of the interview table, the process can also be worrisome to the interviewer! Employers want to make sure they’re hiring the most qualified candidate for the job, while also assessing if the prospective employee is aligned with the organization’s mission and will fit well with company culture. To achieve this, employers (for non and for-profits alike) must be well informed on how to conduct an effective interview. An effective interview requires at least two major components from the employer: carefully prepared interview questions and carefully phrased interview questions.

Choose interview questions with care

shaking hands over table with computer

Carefully prepared interview questions require the employer to determine the critical success factors of the job. Prior to the interview, employers should formulate a detailed job description along with a list of the qualities, skills, certifications/degrees, and previous work experience they are looking for in a candidate. From this, an employer should be able to formulate questions in advance, some open-ended and some not, to ask the candidates.

Avoid certain interview questions like the plague

If you’re hiring for a position you may feel like you can just wing it–one less thing on your to-do list, right? Wrong. There are interview questions and practices that could make the organization a likely target of an employment or discrimination lawsuit. While not illegal in the strictest interpretation of the word, any questions related to the following should be avoided at all costs:

  • Race and ethnicity
  • Sex and gender
  • Race
  • Country of birth/origin
  • Religion
  • Disability
  • Age
  • Marital/family status/pregnancy

Why are questions related to these topics not okay?

Phrase interview questions with care

As an employer, it’s not just what you ask, but how you phrase it. Let’s cover a couple examples:

Age

  • You cannot ask: How old are you?
  • You can ask: Are you over 18?

Asking a candidate about their exact age can lead to accusations of age discrimination or even unconscious ageism bias in hiring.

The concern here can be whether the candidate is old enough to perform the work they are interviewing for, so ensuring that the candidate is legally old enough to work is sufficient. Child labor laws exist to prevent exploitation of minors and mean to make sure education is a higher priority for minor students than work. So, if your organization is considering hiring minors for entry-level part-time roles, make sure you have full understanding of the restrictions on the types of work that can be completed, maximum working hours, and late-night work hours limitations. For instance, work permits are mandatory in Iowa for minors under 16 and violations of limitations and permits come with civil penalties.

watch on wrist

Of course, age discrimination can go the other way too. For instance:

  • You can’t ask: How long do you plan to work until you retire?
  • You can ask: What are your long-term career goals?

According to a survey of older workers by the AARP, not getting hired is the most common type of age discrimination they experienced. An additional 12 percent of older workers say they missed out on a promotion because of age, and eight percent say they were laid off or fired due to their age.

Children and family

  • You cannot ask: Do you have children?
  • You can ask: Are you available to work overtime on occasion? Can you travel for work?

Asking a candidate about children can lead to gender and/or family discrimination. The fact that someone does or does not have children should have no bearing on consideration of the candidate.  The concern here is whether family obligations will interfere with work. Asking directly about the candidate’s availability should be sufficient.

In a similar thread, you cannot ask a female candidate if/when they plan to become pregnant. The Pregnancy Discrimination Act means employers cannot discriminate on the basis of childbirth, pregnancy, or medical conditions related to pregnancy.

two kids on scooters

As an employer, you also cannot condone Family Responsibilities Discrimination against caregivers under the Family and Medical Leave Act (FMLA). This means prohibiting discrimination against prospective and current employees who take leave from work if they have to care for a new baby, aging parent, or sick kid.

Marriage

No one is required to tell you as an employer their marital status or any marriage plans.

  • You can’t ask a female candidate: What’s your maiden name?
  • You can ask: Have you ever graduated or held a job under a different name?

Marriage - bride and groom

Physical abilities & health

  • You can’t ask: How tall are you and how much do you weigh?
  • You can ask: Are you able to perform the specific duties of this position such as lift a box weighing 50 pounds or reach items on a certain size shelf.

Asking for personal details about someone like their weight or height aren’t just “banned,” but they can so be incredibly uncomfortable for the interviewee. Some jobs do require specific physical abilities, but don’t make assumptions about a candidate based on appearance. Ask only direct questions related to what’s required of them.

person walking down path

The Americans with Disabilities Act (ADA) is another super important employment-related law under this category, as it prohibits workplace discrimination based on a person’s disabilities. The ADA defines disability as, “A physical or mental impairment that substantially limits one or more major life activities, a record of such an impairment, or being regarded as having such an impairment.” A good question to ask avoid questioning physical abilities while still gauging if the candidate can perform the job is: “Are you able to perform the essential functions of this job with or without reasonable accommodations?”

Transportation & residence

people on subway train

  • You can’t ask: How far is your commute?
  • You can ask: Are you able to start work at 8 a.m.? Or, are you willing to relocate?

Asking a candidate about where they reside can lead to location discrimination. The concern here should be whether the candidate can regularly show up to work on time. Ensuring that the candidate is able to make it to work on time for a shift or open of business is sufficient.

What else can you ask?

Don’t let all of this scare you off from interviewing and hiring the great people you need to carry out your mission! There are plenty of questions you ask that get to the important stuff related to qualifications, experience, behavior characteristics, and career goals, such as:

  • Tell me about your past work experience.
  • What are you looking to gain from this position?
  • Tell me about you previous experience managing teams.
  • What languages do you speak, read, and/or write fluently?
  • Previously, have you ever been disciplined for violating company policies regarding the use of alcohol or tobacco products?
  • Tell me how you became interested in this industry?

By carefully preparing and phrasing questions in an interview setting, nonprofit employers can minimize legal risks while eliciting information they actually need from job candidates to inform successful hiring decisions!

Interview with the right intel

two people sitting at table

It’s okay to have questions about nonprofit employment decisions like the interview process. It’s better to do it right and be legally prepared for it from the beginning to protect your organization against allegations of discrimination and potential litigation. This dedication to excellence in employment law should then extend through the entire employment process with tools like the ever-important employee handbook and well-crafted executive agreements.

Don’t hesitate to reach out to GFLF via email or by phone (515-371-6077)

World Cup Trophy

What a game! Instant classic!

While I’m far from any type of soccer expert, I closely watched the FIFA 2018 World Cup final, and it struck me that there were three evident lessons from the victorious French team’s play that are transferable to your favorite nonprofit.

World Cup Final score

The Need for Speed

Croatia is a truly great team and played extremely well. But it seemed to me France was simply the faster and quicker team. Faster to loose balls, faster down the field, faster to set up defensive and offensive plays.

Does your favorite nonprofit have the requisite speed to operate in our hyper-digital, I-want-it-yesterday world?

Of course, there’s most definitely times for quiet, sure-but-steady deliberation. You don’t want to be rushed into making bad decisions.

But let me ask you: How fast is your fave nonprofit in getting out thank you notes after a donation or event?

When a potential donor contacts you, how fast is your response time?

When a potential donor contacts you with an unusual gift, a non-cash gift, how quickly can you respond as to whether you take such gifts and that you’ll take this particular gift? (A gift acceptance policy and a gift acceptance committee can work wonders here).

How quickly do you respond to someone who contacts you and wants to become more involved in your nonprofit as a volunteer, committee member, or board member?

To take the simplest example of how being quick and “on the ball” can make a difference, think about if you receive a thank you note just a couple days after a donation is made. It means more and makes a lasting impression rather than a thank you note received a month after a donation is made.

One Superstar Is Not Enough, Not Even Luka Modric

Even the most rabid fan of Les Bleus, would probably agree that Croatia’s Luka Modric is/was the best individual player on the pitch today.

Nonprofits often rely on superstars, too–the executive director who toils for decades; the board president with the knack of bringing board members together, and the volunteer who shows up every week to keep the database totally updated.

But, soccer is a team sport, and in the long game, so is philanthropy.

You don’t need just one of the “superstars,” you need all three…plus many other active staff, volunteers, board members, and stakeholders.

As awesome and spectacular as Modric is as a soccer player, he’s just one player. You need a whole supporting cast to win the match, every match, and stay consistent.

As commentators noted even before the game, France has such a litany of stars that anyone could step up to be counted on a given day. Griezmann, Mbappe, GiroudPogba, and others make France champions because they came to the field with such a deep bench.

Calm, Concentration, and Confidence

One of France’s coaches said he wanted his team to remember just three things during the match today: calm, confidence, and concentration. The same could be said by a leader at your favorite nonprofit.

Calm

On any day, at a small (or even large) nonprofit, all heck can break loose. Instead of one big problem, five, six, or 10 “fires” may break out. In these times, calm is needed. Don’t panic. Panicked people are not productive people. Work your way through each problem in order of importance. Communicate with the others that you’ll be back with them as soon as possible. It will get better. We all have bad days, don’t make a bad day even worse or last all week by not remaining cool and collected.

Concentration

Don’t be constantly distracted by our uber busy, get-it-to-me-yesterday work culture. Decide what’s most important and try to stick to not only tackling it but finishing it, despite the myriad of distraction that no doubt will be thrown at you.

Confidence

If you are not fully confident in your mission, goals, and objectives, potential donors and other stakeholders will be able to sense this. I believe expert legal counsel can help tremendously in this regard. To take just one prominent example, there is no such thing as being too compliant. How many of the policies and procedures the IRS asks about on Form 990 do you have? Were they copied off the Internet willy nilly or personally crafted for the unique needs of your nonprofit? When was the last time they were reviewed and updated? Demonstrate confidence by taking charge of your compliance.

What lessons did you and your favorite charity take from today’s World Cup championship game?

Also, what was your favorite part of the match? I’d love to hear from you! Leave your thoughts in the comments below, or contact me by email, gordon@gordonfischerlawfirm.com or on my cell, 515-37-6077.

My first attempt at a post to celebrate the spring equinox was a bad pun off of “springing power of attorney” (get it?!) that just didn’t work. Instead, I got by with a little help from my Facebook friends the following query:

March 20 is the very first day of Spring. What’s your most very favorite thing about Spring?

There were many excellent responses and it made me all that more excited to say hello to baseball season (go White Sox!) and goodbye to any “Nor’Easter” storms. Because the GoFisch blog has a knack for tying U.S./world news and events in with the mission to promote and maximize charitable giving in Iowa, I thought this start to the season fits in swimmingly with takeaways for Iowa nonprofits.

Winter Is Not Coming

As might be expected, some folks were simply glad winter was (seemingly, mostly) over. Carol Phillips, Polk County Bar Association executive director, bluntly stated her fave thing about spring was “[t]hat it isn’t winter!”

Ken Fuson, Simpson College’s media strategist, hoped for the “possibility that we may not have any more freezing rain for, say, three months.” Retired Iowa Judge Robb Thorson provided his opinion that he’s glad to travel and visit friends and “not have to worry about the weather.”

bulbs in basket

Nonprofit Lesson: Seasons Change

All nonprofit organizations – no matter how successful – suffer through times of “winter.” Times when things seem bleak, cold, dark, icy, treacherous, and you just can’t get warm enough. But, always, these times pass. Sometimes, the best strategy is to just hang in there, as the seasons – metaphorical and real – always change and this too shall pass.

Flora . . .

Teacher Amy Faralli Grider can’t wait for “the smell of a spring rain . . . . “

And Amy’s rain brings flowers. Attorney Patricia Shoff loves “flowering trees!” and she’s not alone in her affinity.

bee with pink flower

Riki Saltzman and Orchard Place’s Nancy Bobo are partial to lilacs, while Iowa Public Radio’s  Kate Payne likes blooming of both lilacs and daffodils. Bleeding Heartland writer Laurie Belin exclaimed: “Wildflowers!” Tamra Saltzman of Creative Visions Human Development Institute loves tulips.

Peggy Huppert, executive director of NAMI Iowa, includes “green grass, tulips, and flowering crabs,” in her list of fave spring things.

Lynn Meadows, of the College of Human Services at Iowa State University, took it several steps forward: “Everything! Longer days, the bright green grass, the pink and purple and white flowers on the trees…ahhhh…signs of hope and renewal.”

Nonprofit Lesson: Flower Power

The most beautiful flowers require lots of proper ingredients and care. And, are you taking care of your nonprofit’s staff, board members, volunteers, donors, and stakeholders, so they can flower and bloom into the beauty of your mission and vision.

. . . And Fauna

Peggy Rosky loves to hear “birds singing in the morning,” and Mary Brunkhorst likes when robins return. DMACC Dean MD Isley is a big fan of morels and new foals. Phil Specht notes spring is when “fish start biting.”

But perhaps spring-iest comment came from teacher Heather Anderson-Morrow, who can’t wait for her students to help her hatch baby chicks in her classroom!

chick bunny flower outline

Nonprofit Lesson: Take Care of Yourself

Nonprofits are typically understaffed and undercapitalized. Whether it’s a nature walk to hear birds trilling, hunting morels, fishing, or spending time with kiddos, it’s important to engage in your hobbies and peaceful activities to recharge, refresh, and start anew.

 

Everything!

Ann Dickinson Nida wrote about spring: “The anticipation of what was planted last year coming up. Playing in the dirt. Warm sunny days. Hope. Budding trees. Sun. Forsythia. Seed catalogs. Can you tell spring is my favorite?”

Former college basketball standout and current awesome teacher, Ann Cavey Jameson, was similarly effusive: “Flowers! Butterflies! Birds! Hiking, thunder storms, budding trees…so much!”

flowers in hand

Nonprofit Lesson: Time for Spring Cleaning?

After a long Iowa winter, spring is always a welcome and refreshing thought. Yet, on top of all the wonderful aspects of emerging from frozen hibernation, this change of seasons reminds us that 2018 is moving quickly! The second quarter of the year is upon us. What are your favorite nonprofit’s plans moving forward?

Let me suggest one “spring cleaning” project. Whether you’re on a nonprofit board, serving as staff, formed your own organization, or are an active donor or volunteer, the Nonprofit Policy Special: 10 For 990 is an important offer to consider and/or pass along to your colleagues, friends, and clients.

Tax-exempt organizations need to have specific guidelines in place to be compliant and meet the IRS’ expectations. It’s never too late to invest in comprehensive internal and external policies and procedures to help your organization work toward and achieve its mission.

Most annual information filing forms are due May 15, which is why through April 15 Gordon Fischer Law Firm is offering a special offer for 10 important policies asked about on Form 990. This also includes a comprehensive consultation and one full review round. Click here to learn more or contact me at gordon@gordonfischerlawfirm.com or 515-371-6077.

Any good attorney worth their weight will advise you on multiple aspects of any given important action or decision. Let’s say you’re considering forming a new 501(c)(3). You may have thoroughly considered all the prospective benefits of a tax-exempt entity, but what about the responsibilities? Indeed, there are serious obligations that come along with creating and running a nonprofit. These can’t be overstated and should certainly be taken into account. Let’s dive into a few of them

Monetary cost: Establishing a nonprofit organization does require a monetary cost including the filing fees to governmental agencies, such as the Iowa Secretary of State’s Office and the IRS. (The Iowa Secretary of State has a $20 filing fee, and the IRS 1023 Form has a current user filing fee of $600.) If you elect to hire a qualified nonprofit attorney to guide you through the formation process and draft the required forms that will be an additional cost.  (Although I would always argue a worthwhile one!)

Once the nonprofit is formed you’ll also want to invest in keeping your nonprofit organization on track, compliant, and successful. A major part of this is drafting and implementing quality internal and external policies and procedures. Again, a nonprofit lawyer can be a valuable asset and provide expertise here.

Cost of time & effort: On top of the monetary costs, there are the additional costs of time and effort. It typically takes a few months to pull all the paperwork together for the formational documents—especially the lengthy Form 1023. After all the paperwork is submitted for IRS review, actual 501(c)(3) approval can vary in the time it takes. A submitted Form 1023 can take anywhere from a month or two to a year to make its way through the review process; the 1023EZ‘s turnaround time depends on the backlog of review at the time.

Even after all of the required documentation is submitted for recognition of exemption, the IRS may request additional information through follow-up questions and supporting materials. And, of course, actually operating the nonprofit will take significant, continuous time and effort which can range in extent, but can include new employee hires, nonprofit board orientations and trainings, and compliance with state and federal laws (like Sarbanes-Oxley, for instance).

The flip side of this is that nonprofit work is often incredibly rewarding and important, making the effort and time even more worthwhile. But, again, it’s something good to just keep in mind as you weigh all inputs to your nonprofit formation decision.

Paperwork: A nonprofit is required to keep detailed records and also submit annual filings to the state and IRS by particular deadlines to keep its active and exempt status. (Reminder: having well-written policies and procedures will make the annual filings, like Form 990, an easier process!)

Shared control: As an incorporator of a nonprofit you will certainly have a say in the development of the organization. Although one who creates nonprofits may want to shape his/her creation, personal control is limited. A nonprofit organization is subject to laws and regulations, including its own foundational documents such as articles of incorporation and bylaws. An Iowa nonprofit is required to have a board of directors, who have certain legal and financial fiduciary duties to uphold. The board itself also has collective responsibilities, so no one person is held solely accountable. Board orientation, trainings, and materials—like a board handbook—organized in a specific way can go a long way toward ensuring the board is set-up for success in working toward the mission you as the founder envisioned.

Scrutiny by the public: In the eyes of the government and society alike, the nonprofit must be dedicated to the public interest in one area or another. This is where it derives its tax-exempt status. It’s also why its finances are open to public inspection. For these reasons nonprofits must be steadfastly transparent in nearly all their actions and dealings.

Interested parties may obtain copies of a nonprofit organization’s state and federal annual information filings to learn about salaries, program expenditures, and other financial information. You should be able to view copies of exempt organizations’ forms for free on the IRS’ website, or you can request a copy from the organization and they most provide it. Additionally, to make it easy for the public, many nonprofits link to these documents on their website. The information can be useful to current and prospective donors, new board members and employees, and grant-making organizations.

I hate to sound like a broken record, but again, this is where superior policies like “public disclosure” and “Form 990 review” are paramount to the operation.

These responsibilities shouldn’t scare you off from forming your change-making organization, but rather important elements to be aware of from the beginning. Plus, if you know the big picture of what you’re getting into, you can plan by enlisting the appropriate professionals to help you on your endeavor!

Want to discuss how to move forward with your nonprofit? Don’t hesitate to take me up on my offer for a free consult and the 10 For 990 policy special! Contact me via email or by phone (515-371-6077).

#SelectionSunday

As we basketball fans get ready for #SelectionSunday, is your team on the bubble? Lots of reporting (like here and here and here) features teams that are oh-so-close to being in the NCAA Tournament, but perhaps not quite so.

Which reminds me to ask, how is your nonprofit team doing? In terms of compliance, is your favorite nonprofit safely “in” the compliance zone and ready to play to win, or are you hoping that the team can be just compliant enough to slide in?

Who do YOU cheer for?

person shooting on basketball court

When I say favorite nonprofit, think of it like the team you have slated to go all the way and win the final round! Perhaps your fave nonprofit is arts-oriented, like Revival Theatre Company in Cedar Rapids. Maybe your top pick is a local human services organization, like The Crisis Center in Johnson County. You could cheer the most for an animal welfare organization, like Friends of the Animal Center Foundation in Iowa City. You may be a tried and true support for a nonprofit that works for the benefit of developing countries, like Self-Help International based in Waverly, Iowa.

In any case, the nonprofit topping your list will likely need to submit an annual filing with the IRS to be “in” the compliance zone. The majority of nonprofit organizations must file some version of IRS Form 990, which asks about a number of policies and procedures.

Go for the win!

Just like the game of basketball is played within an established set of rules, tax-exempt organizations must also “play” within specific guidelines. Doing so means having specific policies and procedures in place to be compliant and in order to meet the IRS’ expectations. When a nonprofit invests in comprehensive internal and external policies and procedures it’s like investing in the right training and resources to maximize the sport team’s strengths.

To continue the analogy, consider me the coach for these policies and procedures and I want to help all Iowa nonprofits teams play their best. This is why I’m offering the 10 for 990 nonprofit policy special now through March 15. Leave the legal drafting to someone else while you continue to maximize your mission. Note that the $990 rate for the 10 important policies asked about on Form 990 also includes a comprehensive consultation and one full review round.

Help your team!

If you’re a nonprofit founder, executive, board member, or even an active volunteer, this is an excellent way to ensure the organization you’re deeply invested in is meeting (and exceeding!) the standard for tax-exempt organizations.

The 10 policies a part of this promotion will save your tax-exempt organization time, resources, and you can feel good about having a set of high quality policies to guide internal operations, present to the public (if appropriate), and fulfill Form 990 requirements.

Don’t wait for a last second shot!

As the game changes your team needs to adapt. If you already have some (or all) of the policies your team needs in place, seriously consider the last time they were updated. How has the organization changed since they were written? Have changes to state and federal laws impacted these policies at all? It may be high time for a new set of policies that fits your organization.

After you’re done filling out your March Madness bracket, commit to helping your own nonprofit team be a champion. Contact GFLF before the policy promotion is up (March 15) via email (Gordon@gordonfischerlawfirm.com) or by phone (515-371-6077) to get started.

No sooner had I written a blog post on how the Academy Awards relate to estate planning, did one of the award recipients bring up another legal topic that needed to be covered!

Best Actress winner Frances McDormand gave a powerful speech about gender equality in Hollywood. Her words seemed a fitting continuation of the #MeToo movement and Time’s Up initiatives that had a clear presence (both spoken and unspoken) in Los Angelas’ Dolby Theatre. At the conclusion, Ms. McDormand said, “I have two words for you: inclusion rider.”

https://www.facebook.com/ABCNetwork/videos/1880602121983915/

What is a Rider?

You may already know that a “rider” is an addition or extra to the main contract. Riders have special meaning when it comes to the entertainment world.

Perks!

Riders can be used to grant certain perks to an artist (like all of the actors and actresses present at last night’s Academy Awards).

Does a principal dancer want a certain kind of water available backstage? Is the guitarist picky about what foods will be available in the green room before and after a concert? If you’re an entertainer (dancer, comic, actor, musician, speaker, etc.) with a reasonable amount of bargaining power (i.e. star power!), you would want to be sure that your contracts include all your favorite little extras. These extras, or demands, should be placed in writing in each legal contract so that they must be honored by the other party such as a film production company, concert promotor, performance venue, and the like.

guitarist on stage

Finance

Riders can also cover specific financial elements. If a pop star, for example, wants a percentage of a concert’s profits, she might request this through a rider. A television actor could attempt to request something similar from online streaming sales.

Inclusion Rider 

Tack the specific word “inclusion” onto rider and you have a contractual clause that actresses/actors can insist be inserted in contracts that requires cast and crew on a film to meet a certain level of diversity (both racial and gendered).

The concept was explored in a TED talk in 2016 by Stacy Smith. Smith, director of USC Annenberg’s Media, Diversity & Social Change Initiative, believes that inclusion riders (also called an “equity clause”) could be part of the solution for the lack of diversity in films. In a 2014 piece she penned for The Hollywood Reporter, she wrote:

What if A-list actors amended every contract with an equity rider? The clause would state that tertiary speaking characters should match the gender distribution of the setting for the film, as long as it’s sensible for the plot. If notable actors working across 25 top films in 2013 had made this change to their contracts, the proportion of balanced films (about half-female) would have jumped from 16 percent to 41 percent. Imagine the possibilities if a few actors exercised their power contractually on behalf of women and girls. It wouldn’t necessarily mean more lead roles for females, but it would create a diverse onscreen demography reflecting a population comprised of 50 percent women and girls.

Smith asserts that there’s no reason why the majority of the minor roles (on average, 30-ish or so roles) cannot reflect the demographics of the realistic environment where a story is taking place. An A-list actor or actress can use their contract to stipulate that the supporting roles in the film (or show) reflect equitable diversity in terms of both race and gender.

Smith said she’s worked with attorneys in the past to craft specific language for the provisions where if the other party failed to meet the inclusion rider requirements, they would need to pay a penalty to a fund or charitable cause that supports underrepresented persons in the industry.

It’s a smart, common sense move that could mean a big change in countering the bias (both conscious and unconscious) in auditions and casting. The intended result is for greater representation and opportunities for women, persons of color, the LGBT community, and persons with disabilities in entertainment. Plus, as actress and comedian Whitney Cummings said, this increased pressure for inclusivity “will make movies better.

McDormand on Inclusion Riders

Backstage after the Oscars ceremony, McDormand said of inclusion riders, “I just found out about this last week. There has always been available to all, everybody who does a negotiation on a film, which means you can ask for or demand at least 50 percent diversity in not only the casting and the crew. The fact that I just learned that after 35 years in the film business – we aren’t going back.”

Inclusion Riders & You

While you may not be nominated for an Academy Award anytime soon, the takeaway is twofold.

First: if you support increased representation of different genders and races in movies you can support the films that respect inclusion riders with your money. You can also spread the word with the tag #EquityRider when tweeting to actors and actresses asking for them to support the concept through their own contract.

Second: this goes to show the power of the contact and negotiation process. Because the contract can dictate how the relationship between employer and employee (or production company and talent, for instance) run, it’s important to hire an attorney to help you stand up for your wants and needs in respect to the relationship.

To this point, if you’re a nonprofit organization looking to make some new hires or an employee wondering if the contract you’re about to sign will actually be in your best interest, don’t hesitate to contact me.

I’ll never forget that night. Several months ago, a simple notification popped up on my Twitter account. Very rarely have five words caused me such joy: “Soledad O’Brien is following you.”

I was social media starstruck!

Sure, I know that this was likely the doing of a digital tool that auto-follows accounts that tweet about certain subjects. Or, maybe it was one of the social media interns who saw my retweets of @soledadobrien and decided to throw me a follow as a fan. Since she follows 447k accounts I have no doubt that the impressive individual herself didn’t actually follow me…but hey, we all like to feel liked and heard even if it’s a digital facade.

To understand why this was such a Big Hairy Audacious Deal (if you got the reference to Jim Collins’ concept, applause!), let me put this into context of my small, “local” Twitter account and Ms. O’Brien’s worldwide acclaim.

A Lonely 440+

My Twitter account has merely around 440 followers (at the time of publication). I put out great content, and it’s growing slowly and surely, but would love for more people to join the party. (In fact, if you’re reading this and haven’t followed @FischerGordon yet, check out all the great info I share on estate planning, nonprofit formation and compliance, and charitable giving on top of Iowa-centric news and all around interesting factoids.) But, let’s be honest I have a long way to go to catch up to the likes of the Big Ben clock that simply tweets “bong” in various quantities and the San Francisco fog, apparently named Karl.

Soledad is Superb

In contrast to my lowly follower count, @soledadobrien has a well-deserved follower count at 809k and counting. For those few of you who are unaware, Soledad O’Brien is a world-famous broadcast journalist renowned for her roles as anchor and correspondent for MSNBC, CNN, HBO, and Al Jazeera America. She has been a tremendously well respected presence in broadcast news since 1991. She has covered so many huge stories I can’t possibly list them all. Countless times she’s been on “best of” lists and she’s won a Peabody Award and four Emmy Awards.

Presently, Ms. O’Brien is the host of Matter of Fact with Soledad O’Brien, a show focusing on politics and socioeconomic concerns produced by her very own multi-platform Starfish Media Group.

Newsworthy Nonpxrofit Policy Special Worthy of O’Brien’s Reporting

I would regularly check to see if Soledad O’Brien ever unfollowed me. Maybe the social media software algorithm wised up or the social media intern was tasked with clearing out the followings of accounts with sub-500 followers. But, my coolest follower (sorry everyone else!) is still there! This fact has, of course, let me to the inevitable conclusion: O’Brien must want me on her show! Why else would she follow an attorney who’s on a mission to maximize charitable giving in Iowa?

Why would she want me on her show at all? I’m biased, but I think the 10 for 990 nonprofit policy special (available through March 15) is certainly newsworthy! While not a political scoop, the 10 for 990 deal could benefit (Iowa) nonprofits working toward the betterment of socioeconomic issues and/or advocating for increased engagement in American democracy.

A journalist of O’Brien’s caliber would need some more details before she ever agreed to have me on as a guest. As such, the 10 for 990 offer provides nonprofits the ten policies discussed on the IRS’ Form 990 for the flat fee of only $990. (IRS Form 990 is the tax form nonprofits must complete once they’ve reached a certain monetary threshold. Just like individuals have to fill out a personal income tax form). The 10 policies asked about on the Form 990 include conflict of interest, document retention and destruction, whistleblower, compensation, fundraising, gift acceptance, financial policies and procedures, and investment.

If Ms. O’Brien were to ever interview me on this truly fantastic deal, I would share the benefits of having a qualified attorney craft these important policies and explain the collective responsibilities of nonprofit boards.

Even if you’re not an award-winning journalist turned CEO, I would love to talk to you about this policy special. Because Form 990 is typically due in May, now is the perfect time to get ahead on compliance. Nonprofit executives, board members, and even engaged volunteers should contact me via email or phone (515-371-6077) to learn how this could fit in with your organization’s goals.

Did you miss the most recent edition of my monthly newsletter, GoFisch? It “swam” (punny, get it?) into inboxes on Valentine’s Day and fittingly featured how estate planning is a way of saying “I love you.” While Valentine’s Day has come and gone, every day is a great day to show your friends and family you care, so give the highlighted posts about different aspects of estate planning (like final disposition of remains and testamentary trusts) a read.

This GoFisch edition also included:

  • An exciting policy special for nonprofit organizations running through March 15. Read more about the 10 For 990 deal here.
  • A love-inspired curated Spotify playlist to play while you work through your estate plan.
  • Iowa-based nonprofit & philanthropy news.
  • Must-read GoFisch blog post highlights.

Like what you read? Don’t forget to subscribe to GoFisch and tell your friends! You can also scan through previous editions of the newsletter here.