keeping out of jail carl paulsen, program director new hampshire rivers council nhrivers.org michele...
TRANSCRIPT
![Page 1: Keeping Out of Jail Carl Paulsen, Program Director New Hampshire Rivers Council nhrivers.org Michele L. Tremblay, Principal naturesource communications](https://reader035.vdocument.in/reader035/viewer/2022062619/5517f825550346c6568b4e73/html5/thumbnails/1.jpg)
![Page 2: Keeping Out of Jail Carl Paulsen, Program Director New Hampshire Rivers Council nhrivers.org Michele L. Tremblay, Principal naturesource communications](https://reader035.vdocument.in/reader035/viewer/2022062619/5517f825550346c6568b4e73/html5/thumbnails/2.jpg)
Keeping Out of Jail
Carl Paulsen, Program DirectorNew Hampshire Rivers Council
nhrivers.org
Michele L. Tremblay, Principalnaturesource communications
naturesource.net
Watershed ConferenceNovember 17, 2007
![Page 3: Keeping Out of Jail Carl Paulsen, Program Director New Hampshire Rivers Council nhrivers.org Michele L. Tremblay, Principal naturesource communications](https://reader035.vdocument.in/reader035/viewer/2022062619/5517f825550346c6568b4e73/html5/thumbnails/3.jpg)
How can you help your watershed from here?
![Page 4: Keeping Out of Jail Carl Paulsen, Program Director New Hampshire Rivers Council nhrivers.org Michele L. Tremblay, Principal naturesource communications](https://reader035.vdocument.in/reader035/viewer/2022062619/5517f825550346c6568b4e73/html5/thumbnails/4.jpg)
The fine print…
Our disclosure so that we can stay out of jail
ourselves…
We are not attorneys, and therefore are not providing legal advice.
We are providing information to help you understand the range of rights and responsibilities of different types of watershed-related conservation organizations.
You should ultimately seek advice from the state, the IRS, and potentially an attorney when you establish a conservation group.
![Page 5: Keeping Out of Jail Carl Paulsen, Program Director New Hampshire Rivers Council nhrivers.org Michele L. Tremblay, Principal naturesource communications](https://reader035.vdocument.in/reader035/viewer/2022062619/5517f825550346c6568b4e73/html5/thumbnails/5.jpg)
Kinds of organizations
![Page 6: Keeping Out of Jail Carl Paulsen, Program Director New Hampshire Rivers Council nhrivers.org Michele L. Tremblay, Principal naturesource communications](https://reader035.vdocument.in/reader035/viewer/2022062619/5517f825550346c6568b4e73/html5/thumbnails/6.jpg)
LACs
RSA 483:8-a(V) RSA 483:13 “accept
and expend funds…” IRS code 170(a)(1)
![Page 7: Keeping Out of Jail Carl Paulsen, Program Director New Hampshire Rivers Council nhrivers.org Michele L. Tremblay, Principal naturesource communications](https://reader035.vdocument.in/reader035/viewer/2022062619/5517f825550346c6568b4e73/html5/thumbnails/7.jpg)
Bona fide nonprofits without staff
IRS code 501(c)(3)
![Page 8: Keeping Out of Jail Carl Paulsen, Program Director New Hampshire Rivers Council nhrivers.org Michele L. Tremblay, Principal naturesource communications](https://reader035.vdocument.in/reader035/viewer/2022062619/5517f825550346c6568b4e73/html5/thumbnails/8.jpg)
Bona fide nonprofits with staff
IRS code 501(c)(3)
![Page 9: Keeping Out of Jail Carl Paulsen, Program Director New Hampshire Rivers Council nhrivers.org Michele L. Tremblay, Principal naturesource communications](https://reader035.vdocument.in/reader035/viewer/2022062619/5517f825550346c6568b4e73/html5/thumbnails/9.jpg)
Ad-hoc grassroots groups
Cocheco River Watershed Coalition (registered with the State of NH but not with the IRS
![Page 10: Keeping Out of Jail Carl Paulsen, Program Director New Hampshire Rivers Council nhrivers.org Michele L. Tremblay, Principal naturesource communications](https://reader035.vdocument.in/reader035/viewer/2022062619/5517f825550346c6568b4e73/html5/thumbnails/10.jpg)
Municipal
Cities Counties Towns including
conservation commissions and other groups under the municipal umbrella
Other subdivisions of state government including county conservation districts
![Page 11: Keeping Out of Jail Carl Paulsen, Program Director New Hampshire Rivers Council nhrivers.org Michele L. Tremblay, Principal naturesource communications](https://reader035.vdocument.in/reader035/viewer/2022062619/5517f825550346c6568b4e73/html5/thumbnails/11.jpg)
Now that you know who you are:
what you can (and have to) do
and what you can’t do
![Page 12: Keeping Out of Jail Carl Paulsen, Program Director New Hampshire Rivers Council nhrivers.org Michele L. Tremblay, Principal naturesource communications](https://reader035.vdocument.in/reader035/viewer/2022062619/5517f825550346c6568b4e73/html5/thumbnails/12.jpg)
LACs can…
Solicit tax deductible contributions—no IRS letter required but RMPP letter confirming nonprofit status is important.
EIN required for opening a bank account
A-133 Audit if spend >$500k of federal funds in one year
Contract with consultants
![Page 13: Keeping Out of Jail Carl Paulsen, Program Director New Hampshire Rivers Council nhrivers.org Michele L. Tremblay, Principal naturesource communications](https://reader035.vdocument.in/reader035/viewer/2022062619/5517f825550346c6568b4e73/html5/thumbnails/13.jpg)
LACs can’t
Accept grants from funders who won’t accept the Section 170(a)(1) explanation
![Page 14: Keeping Out of Jail Carl Paulsen, Program Director New Hampshire Rivers Council nhrivers.org Michele L. Tremblay, Principal naturesource communications](https://reader035.vdocument.in/reader035/viewer/2022062619/5517f825550346c6568b4e73/html5/thumbnails/14.jpg)
Bona fide nonprofits without staffmust
Register with IRS and State of NH
Have bylaws and articles of agreement, including dissolution provision, and conflicts of interest policy
File annual state income reports (NHCT-2A)
Charter renewal required every five years
Federal tax filing (990 or equivalent)
![Page 15: Keeping Out of Jail Carl Paulsen, Program Director New Hampshire Rivers Council nhrivers.org Michele L. Tremblay, Principal naturesource communications](https://reader035.vdocument.in/reader035/viewer/2022062619/5517f825550346c6568b4e73/html5/thumbnails/15.jpg)
Bona fide nonprofits without staffcan
Accept grants Accept tax deductible
donations Hire staff Accumulate revenue
(must eventually be spent on mission)
Engage in limited volunteer lobbying
![Page 16: Keeping Out of Jail Carl Paulsen, Program Director New Hampshire Rivers Council nhrivers.org Michele L. Tremblay, Principal naturesource communications](https://reader035.vdocument.in/reader035/viewer/2022062619/5517f825550346c6568b4e73/html5/thumbnails/16.jpg)
Bona fide nonprofits without staffcan’t
Lobby more than an “insignificant” amount (see prior slide)
Engage in partisan political action
Raise revenue from activities not consistent with mission unless taxes are paid on that income
![Page 17: Keeping Out of Jail Carl Paulsen, Program Director New Hampshire Rivers Council nhrivers.org Michele L. Tremblay, Principal naturesource communications](https://reader035.vdocument.in/reader035/viewer/2022062619/5517f825550346c6568b4e73/html5/thumbnails/17.jpg)
Bona fide nonprofits with staffmust
Same as unstaffed nonprofit plus— Report all hires to state Pay federal and state withholding
and SS taxes on salaries and wages
Display employment, safety, non-discrimination, and other federal and state employment posters
Purchase Workers Compensation and state unemployment insurance
![Page 18: Keeping Out of Jail Carl Paulsen, Program Director New Hampshire Rivers Council nhrivers.org Michele L. Tremblay, Principal naturesource communications](https://reader035.vdocument.in/reader035/viewer/2022062619/5517f825550346c6568b4e73/html5/thumbnails/18.jpg)
Bona fide nonprofits with staff can
Accept grants Accept tax deductible
donations Accumulate profits
(must ultimately be spent on mission)
Engage in limited (“insubstantial”) lobbying
![Page 19: Keeping Out of Jail Carl Paulsen, Program Director New Hampshire Rivers Council nhrivers.org Michele L. Tremblay, Principal naturesource communications](https://reader035.vdocument.in/reader035/viewer/2022062619/5517f825550346c6568b4e73/html5/thumbnails/19.jpg)
Bona fide nonprofits with staff can’t
Engage in partisan politics
![Page 20: Keeping Out of Jail Carl Paulsen, Program Director New Hampshire Rivers Council nhrivers.org Michele L. Tremblay, Principal naturesource communications](https://reader035.vdocument.in/reader035/viewer/2022062619/5517f825550346c6568b4e73/html5/thumbnails/20.jpg)
Ad-hoc grassroots groups
Virtually no requirements Contributions not tax
deductible by donors Engage in unlimited lobbying If raising funds:
Name registration with State (or sole proprietorship under one individual tax ID #)
EIN for bank account State and Federal tax filing
![Page 21: Keeping Out of Jail Carl Paulsen, Program Director New Hampshire Rivers Council nhrivers.org Michele L. Tremblay, Principal naturesource communications](https://reader035.vdocument.in/reader035/viewer/2022062619/5517f825550346c6568b4e73/html5/thumbnails/21.jpg)
Municipalities can
Accept donations that are tax-deductible and virtually everything that a nonprofit can do
![Page 22: Keeping Out of Jail Carl Paulsen, Program Director New Hampshire Rivers Council nhrivers.org Michele L. Tremblay, Principal naturesource communications](https://reader035.vdocument.in/reader035/viewer/2022062619/5517f825550346c6568b4e73/html5/thumbnails/22.jpg)
Resources
NH Center for Nonprofitsnonprofits.org
River Network RiverNetwork.org
Charitable Trusts Unit of DOJDOJ.nh.gov/charitable
Internal Revenue ServicesIRS.gov/charities/index.html
![Page 23: Keeping Out of Jail Carl Paulsen, Program Director New Hampshire Rivers Council nhrivers.org Michele L. Tremblay, Principal naturesource communications](https://reader035.vdocument.in/reader035/viewer/2022062619/5517f825550346c6568b4e73/html5/thumbnails/23.jpg)
More resources
![Page 24: Keeping Out of Jail Carl Paulsen, Program Director New Hampshire Rivers Council nhrivers.org Michele L. Tremblay, Principal naturesource communications](https://reader035.vdocument.in/reader035/viewer/2022062619/5517f825550346c6568b4e73/html5/thumbnails/24.jpg)
Don’t end up here…
![Page 25: Keeping Out of Jail Carl Paulsen, Program Director New Hampshire Rivers Council nhrivers.org Michele L. Tremblay, Principal naturesource communications](https://reader035.vdocument.in/reader035/viewer/2022062619/5517f825550346c6568b4e73/html5/thumbnails/25.jpg)
Carl Paulsen, Program DirectorNew Hampshire Rivers Council
nhrivers.org
Michele L. Tremblay, Principalnaturesource communications
naturesource.net
Thank you!
![Page 26: Keeping Out of Jail Carl Paulsen, Program Director New Hampshire Rivers Council nhrivers.org Michele L. Tremblay, Principal naturesource communications](https://reader035.vdocument.in/reader035/viewer/2022062619/5517f825550346c6568b4e73/html5/thumbnails/26.jpg)