Charity Therapy

In this episode of Charity Therapy, Meghan and I are diving into the wild world where nonprofits and for-profit businesses collide. Ever wondered what happens when one person owns both a nonprofit and a business? Spoiler alert: it can get messy. We'll answer your burning questions about these murky waters, help you spot the red flags, and remind you why transparency is crucial. Plus, we'll chat about how the IRS keeps a close eye on potential scams and insider deals. We won't sugarcoat it—things can get shady when a nonprofit starts buying from its owner's business. We're talking about the nitty-gritty of private inurement and excess benefit transactions. If that sounds like a foreign language, don’t worry—we break it down in plain English. We'll even throw in some hypothetical scenarios to help you see the potential tax perks and pitfalls. Whether you're a nonprofit newbie or a seasoned pro, you'll leave this episode with a better understanding of what to watch out for. Finally, we tackle the tricky topic of scams. They're not just harmful—they're often pointless, too! We encourage you to cut ties with any sketchy schemes and share your stories with us. Got a friend tangled up in a dubious venture? We'd love to hear about it and offer our take. Remember, you're not alone on this nonprofit journey, and we're here to help you navigate it with a bit of humor and a lot of heart. In this episode, you will hear: Spotting sneaky nonprofit tricks: nonprofits linked to for-profit businesses and suspicious money flows between them Why owning both a nonprofit and a for-profit can lead to IRS issues and is usually discouraged How nonprofits purchase from the owner's business, hinting at potential misconduct Scams, avoiding shady dealings, and adhering to nonprofit ethics Nonprofits require effort and aren't a shortcut to riches Resources from this Episode Sign up for the Birken Law Email list: https://birkenlaw.com/signup/ Facebook page: https://www.facebook.com/birkenlaw Follow and Review: We’d love for you to follow us if you haven’t yet. Click that purple '+' in the top right corner of your Apple Podcasts app. We’d love it even more if you could drop a review or 5-star rating over on Apple Podcasts. Simply select “Ratings and Reviews” and “Write a Review” then a quick line with your favorite part of the episode. It only takes a second and it helps spread the word about the podcast. Episode Credits If you like this podcast and are thinking of creating your own, consider talking to my producer, Emerald City Productions. They helped me grow and produce the podcast you are listening to right now. Find out more at https://emeraldcitypro.com Let them know we sent you.

On this episode of Charity Therapy, Meghan and I are diving headfirst into the tricky world of nonprofit boards. You're not alone if you've ever wondered why your board seems more like a roadblock than a support system. We've got a juicy listener question from someone stuck with a board that feels more like a nagging boss than a helpful partner. Can you just ditch the board entirely? Spoiler alert: it’s not that simple, but we're here to help you navigate these murky waters. Meghan and I unravel the tangled web of board-staff dynamics. We know how frustrating it can be when board members overstep, adding more to your to-do list than you can handle. We’ll chat about the board’s legal duties (in the least boring way possible) and why they can’t just sign them away. Plus, we’ll offer real-world tips on how executive directors can manage these board relations better, ensuring everyone stays in their lane. And yes, we’ll even sprinkle in a bit of Oxford comma drama just to keep things interesting. Whether you’re an ED who feels like you're juggling flaming torches or a staff member wishing for a little more autonomy, this episode is for you. We'll explore practical solutions like board training and third-party mediation to help smooth things out. Tune in, laugh with us, and maybe learn how to gently nudge your board in the right direction. And if all else fails, feel free to share this episode with a board member who could use a hint! In this episode, you will hear: Nonprofit boards: the captain's role, steering missions. Can a weak board be ousted? Drama alert: Board overreach vs. staff independence. Legal duties demand balance. Board-staff tension eases with a playful Oxford comma debate. Spicy grammar wars! Boards that delegate too much. Chasing resume clout, not nonprofit passion. Tips for executive directors: Manage board expectations and set boundaries. No more random tasks! Board-staff tensions? Training and a neutral party can help clear the air. Resources from this Episode Sign up for the Birken Law Email list: https://birkenlaw.com/signup/ Facebook page: https://www.facebook.com/birkenlaw Follow and Review: We’d love for you to follow us if you haven’t yet. Click that purple '+' in the top right corner of your Apple Podcasts app. We’d love it even more if you could drop a review or 5-star rating over on Apple Podcasts. Simply select “Ratings and Reviews” and “Write a Review” then a quick line with your favorite part of the episode. It only takes a second and it helps spread the word about the podcast. Episode Credits If you like this podcast and are thinking of creating your own, consider talking to my producer, Emerald City Productions. They helped me grow and produce the podcast you are listening to right now. Find out more at https://emeraldcitypro.com Let them know we sent you.

In this episode of Charity Therapy, my co-host Meghan and I are answering one of the top questions we get - what happens while an org’s nonprofit tax exempt status is pending? We know that the IRS application process for 501(c)(3) status can feel like climbing a mountain in flip-flops, so we're here to break it down for you. We'll chat about the differences between the 1023-EZ form and the full 1023, and give you the lowdown on processing times and eligibility requirements. Plus, we'll answer a listener's burning question about whether you should wait for IRS approval before getting your nonprofit up and running. Spoiler alert: you don't have to just twiddle your thumbs! But let's be real, starting a nonprofit isn't just about paperwork. It's about passion, community, and making a difference. We'll share some laughs and maybe a few zany stories as we explore the importance of community support in spreading your nonprofit's mission. We'll also talk about how you can start building those vital connections and getting things moving, even while you're waiting for that IRS letter to show up in your mailbox. Finally, we'd love for you to join our growing community. Share this episode with your friends, hit that subscribe button, and don't forget to rate and review us. It really helps more people find us and get the support they need. And hey, if you've got a story or a question, reach out to us online. We're eager to hear from you and keep this conversation going. Thanks for being part of our journey into the world of nonprofits—you're not alone in this, and we're cheering you on every step of the way! In this episode, you will hear: The real differences between the 1023-EZ and the full 1023 form—quick snack vs. full-course meal for your nonprofit! How long it’ll take for the IRS to review your application What you can and can’t do after you file the application How to stay out of trouble before your letter comes in the mail What to tell donors when you’ve applied but haven’t gotten your status yet Resources from this Episode Check out Next in Nonprofits: www.nextinnonprofits.com Sign up for the Birken Law Email list: birkenlaw.com/signup Facebook page: www.facebook.com/birkenlaw Follow and Review: We’d love for you to follow us if you haven’t yet. Click that purple '+' in the top right corner of your Apple Podcasts app. We’d love it even more if you could drop a review or 5-star rating over on Apple Podcasts. Simply select “Ratings and Reviews” and “Write a Review” then a quick line with your favorite part of the episode. It only takes a second and it helps spread the word about the podcast. Episode Credits If you like this podcast and are thinking of creating your own, consider talking to my producer, Emerald City Productions. They helped me grow and produce the podcast you are listening to right now. Find out more at https://emeraldcitypro.com Let them know we sent you.

Have you ever tried to open a bank account for your 501(c)(3) and felt like you were navigating a never-ending maze? Well, you're not alone! In this episode of Charity Therapy, Meghan and I are here to make that process a whole lot simpler. We’re breaking down the essential steps, from getting all your paperwork in order to avoiding common pitfalls. Whether you’re a pro or just getting your nonprofit boots on, this chat will leave you feeling ready to confidently tackle your nonprofit’s finances. We dive into a listener's tricky situation about starting a new chapter of a 501(c)(3) and the hurdles they’ve faced with getting a bank account. Spoiler alert: sometimes the national organization isn’t being unhelpful—they might just be following the rules! With a mix of legal insights and real-world stories, we’ll explain why proper authorization is crucial and how to ensure you’re not accidentally breaking any rules. By the end of this episode, you’ll know exactly what steps to take to open that nonprofit bank account the right way. In this episode, you will hear: The must-do steps for setting up a nonprofit bank account, from getting incorporated to gathering all the necessary paperwork A listener's struggle with opening a bank account for a new chapter of a 501(c)(3) Why having the proper authorization is crucial The common mistakes people make when setting up nonprofit bank accounts and how to avoid them The lowdown on how different nonprofit structures (like chapters and affiliates) affect your banking options Learn why opening a secret bank account is a terrible idea, even if you have the best intentions Resources from this Episode Learn about nonprofit chapters & affiliates: birkenlaw.com/charity-therapy-podcast/ct097 Sign up for the Birken Law Email list: birkenlaw.com/signup Facebook page: www.facebook.com/birkenlaw Follow and Review: We’d love for you to follow us if you haven’t yet. Click that purple '+' in the top right corner of your Apple Podcasts app. We’d love it even more if you could drop a review or 5-star rating over on Apple Podcasts. Simply select “Ratings and Reviews” and “Write a Review” then a quick line with your favorite part of the episode. It only takes a second and it helps spread the word about the podcast. Episode Credits If you like this podcast and are thinking of creating your own, consider talking to my producer, Emerald City Productions. They helped me grow and produce the podcast you are listening to right now. Find out more at https://emeraldcitypro.com Let them know we sent you.

In this episode of Charity Therapy, Meghan and I are taking you on a wild ride from the wacky world of the Minnesota State Fair to the serious yet often misunderstood role of a nonprofit founder. We dive into the heart of the matter: what does it really means to start a nonprofit? Spoiler alert: unlike for-profits, it probably doesn’t mean any cash in your pocket. Intrigued? Stick around to find out why this is so crucial for keeping charities honest and effective. We tackle a listener's query about founder rights when the board calls it quits. There's a big myth that founders have ownership rights, and we're here to bust that myth wide open. When a nonprofit closes, its assets go to another nonprofit, not into the founder’s pocket. We know this can be a tough pill to swallow, especially if you're super passionate about your mission. We offer some advice on how to keep your cause alive, even if it means starting fresh. We chat about the tough realities of giving up control to a board and offer some fun, light-hearted moments to keep things balanced. So grab your favorite fair food (maybe skip the dill pickle lemonade) and join us for a deep dive into the ups and downs of nonprofit founding. In this episode, you will hear: What a nonprofit founder’s role REALLY is What happens to the assets when a nonprofit closes its doors A listener question on whether founders have any rights after a nonprofit’s board votes to dissolve Busting the myth that founders have ownership rights The emotional and legal aspects of letting go of a nonprofit The sometimes tricky relationship between a founder’s vision and the board’s decisions Starting a nonprofit means giving up control to the board Advice on how to keep your mission alive, even if it means starting a new venture from scratch Resources from this Episode Learn about nonprofit dissolution: birkenlaw.com/charity-therapy-podcast/ct115 Sign up for the Birken Law Email list: birkenlaw.com/signup Facebook page: www.facebook.com/birkenlaw Follow and Review: We’d love for you to follow us if you haven’t yet. Click that purple '+' in the top right corner of your Apple Podcasts app. We’d love it even more if you could drop a review or 5-star rating over on Apple Podcasts. Simply select “Ratings and Reviews” and “Write a Review” then a quick line with your favorite part of the episode. It only takes a second and it helps spread the word about the podcast. Episode Credits If you like this podcast and are thinking of creating your own, consider talking to my producer, Emerald City Productions. They helped me grow and produce the podcast you are listening to right now. Find out more at https://emeraldcitypro.com Let them know we sent you.

Today, Meghan and I are diving deep into the early years of running a nonprofit – that tricky “danger zone” between one to three years where everything feels like it's falling apart. On this episode of Charity Therapy, we're chatting about how to tackle burnout, handle fundraising nightmares, and smooth out those internal squabbles that can really put a damper on things. Plus, we’ll be answering a juicy listener question about reviving a nonprofit its president unilaterally dissolved. Spoiler alert: governance drama and IRS headaches ahead! We'll walk you through the maze of bureaucratic steps needed to bring a dissolved nonprofit back to life – or decide if it's better off staying in the grave. We’ll talk about the difference between a fully dissolved nonprofit and one that's just been left to gather dust and why that matters. Reapplying for 501(c)(3) status isn't exactly a walk in the park, but we have some tips to make it less daunting. But it's not all paperwork and processes – we also celebrate the incredible passion and dedication of nonprofit folks like you. Remember, focusing on the human element is key to long-term success and growth. So grab your favorite drink, settle in, and join us for a conversation that's as insightful as it is relatable. And hey, if you enjoy this episode, do us a solid and leave a five-star review. Share it with anyone who might be struggling with their nonprofit journey. We’re all in this together! In this episode, you will hear: Why nonprofits often hit a “danger zone” in their first three years The burnout, fundraising woes, and internal conflicts that spell trouble for a new nonprofit organization A listener’s situation where the president dissolved their nonprofit solo How to potentially revive a nonprofit or start fresh The difference between a fully dissolved nonprofit and one that's just been left hanging, and why it matters The tricky process of reapplying for tax-exempt status with the IRS and understanding the procedural nitty-gritty How to reanimate an abandoned nonprofit and the potential drama it could stir up Why keeping the human side in mind is key to sustained growth and wellness Resources from this Episode Mission Guardian: www.missionguardian.com Sign up for the Birken Law Email list: birkenlaw.com/signup Facebook page: www.facebook.com/birkenlaw Follow and Review: We’d love for you to follow us if you haven’t yet. Click that purple '+' in the top right corner of your Apple Podcasts app. We’d love it even more if you could drop a review or 5-star rating over on Apple Podcasts. Simply select “Ratings and Reviews” and “Write a Review” then a quick line with your favorite part of the episode. It only takes a second and it helps spread the word about the podcast. Episode Credits If you like this podcast and are thinking of creating your own, consider talking to my producer, Emerald City Productions. They helped me grow and produce the podcast you are listening to right now. Find out more at https://emeraldcitypro.com Let them know we sent you.

On this episode of Charity Therapy, Meghan and I cover the most important topic - the REAL differences between a Minnesotan and a Wisconsin accent! But don't worry. We quickly shift gears to talk about something really important for nonprofits: DBAs (Doing Business As). We answer a listener's question about juggling legal name changes and DBAs without making things overly complicated. Trust me, you'll walk away with some practical tips to make your nonprofit life a whole lot easier. In the second half of the episode, we get into the nitty-gritty of managing multiple DBAs for nonprofits. Meghan and I break down the annual compliance you need to keep up with and warn against filing unnecessary DBAs that just add to your workload. We even chat about how keeping an old DBA can help make rebranding smoother. Plus, we've got some funny anecdotes and past episodes to reference if you need a deeper dive into nonprofit branding.  Whether you're a nonprofit newbie or a seasoned pro, join us for some laughs and loads of actionable advice. We'll help you navigate the maze of DBAs, compliance, and rebranding, all while keeping things light and fun. And don't forget to share your own quirky accent stories with us on social media—we'd love to hear from you! In this episode, you will hear: What a DBA is for nonprofits Keeping things legal and clear for banks and the public A listener's question on filing multiple DBAs after a name change When you should file a DBA (hint - not just for the heck of it!) Strategies for rebranding Keeping an old DBA during a transition The headaches of managing multiple DBAs The need for annual state registration Risks of letting state registrations lapse Avoiding extra work and potential legal messes Avoiding being shady Only file DBAs if they solve real problems Over-filing creates more hassle and paperwork Resources from this Episode Episode about branding & changing the nonprofit’s name: https:/birkenlaw.com/charity-therapy-podcast/ct105 Sign up for the Birken Law Email list: https://birkenlaw.com/signup/ Facebook page: https://www.facebook.com/birkenlaw Follow and Review: We’d love for you to follow us if you haven’t yet. Click that purple '+' in the top right corner of your Apple Podcasts app. We’d love it even more if you could drop a review or 5-star rating over on Apple Podcasts. Simply select “Ratings and Reviews” and “Write a Review” then a quick line with your favorite part of the episode. It only takes a second and it helps spread the word about the podcast. Episode Credits If you like this podcast and are thinking of creating your own, consider talking to my producer, Emerald City Productions. They helped me grow and produce the podcast you are listening to right now. Find out more at https://emeraldcitypro.com Let them know we sent you.

Welcome to another episode of Charity Therapy! This time, Meghan and I dive into the emotional and often tricky process of nonprofit dissolution. It's a rollercoaster. We'll talk about what happens to leftover funds and how to make sure they go to the right places, respect donor wishes, and keep the nonprofit’s mission alive. Plus, we've got some advice for a former executive director wrestling with how to distribute those remaining funds in a meaningful way. Spoiler: sometimes, overthinking can be the real villain. In the second half of the episode, we flip the script and invite you to join our community. We want to hear your stories, questions, and feedback—anonymously, of course. Your ratings and comments, especially those shiny five-star ones on Apple, help us keep bringing valuable content to the nonprofit world. And hey, I even compare our intense discussion to taking a cold shower—refreshing but definitely eye-opening. Lastly, remember, we’re all in this together. The nonprofit world can be tough, but you’re not alone. Grab your headphones, get comfy, and let's dive into this heartfelt and insightful episode. You won’t want to miss it! In this episode, you will hear: The tricky process of dissolving a nonprofit How to handle leftover funds without breaking a sweat IRS guidelines for transferring assets A former executive director’s question about making big donations to a few nonprofits or spreading the money around The emotional struggle of letting go of a nonprofit closing down Resources from this Episode Sign up for the Birken Law Email list: https://birkenlaw.com/signup/ Facebook page: https://www.facebook.com/birkenlaw Follow and Review: We’d love for you to follow us if you haven’t yet. Click that purple '+' in the top right corner of your Apple Podcasts app. We’d love it even more if you could drop a review or 5-star rating over on Apple Podcasts. Simply select “Ratings and Reviews” and “Write a Review” then a quick line with your favorite part of the episode. It only takes a second and it helps spread the word about the podcast. Episode Credits If you like this podcast and are thinking of creating your own, consider talking to my producer, Emerald City Productions. They helped me grow and produce the podcast you are listening to right now. Find out more at https://emeraldcitypro.com Let them know we sent you.

Ever wondered what nonprofits can and can't do when it comes to politics? On today’s episode of Charity Therapy, Meghan and I are diving into the tricky world of political activities for 501c3 nonprofits. We'll chat about the dos and don'ts of voter engagement, why 501c3s can't endorse candidates, and how 501c4s have more wiggle room in the political arena. Plus, we touch on the buzz around the Heritage Foundation and Project 2025. Spoiler: it's more complicated than you think! We also tackle some common misconceptions about how the IRS handles complaints about nonprofits. It's not as simple as just filling out a form and sending it off. We'll talk about the reality of IRS oversight, the importance of detailed documentation, and why state attorney generals might be your best bet if you suspect a nonprofit is up to no good. If you’ve ever wondered how to properly report nonprofit misconduct, this episode is a must-listen. By the end of our chat, you’ll have a clearer understanding of the rules nonprofits need to follow, and you might even find some humor in the chaos of IRS paperwork (yes, really!). Grab a cup of coffee, sit back, and let’s navigate these nonprofit political regulations together. In this episode, you will hear: The political dos and don’ts of 501c3 nonprofits 501c4s have way more freedom in politics than 501c3s Can you really shut down Project 2025 by filing a complaint with the IRS? Why filling out Form 13909 isn’t a magic wand The IRS is like a turtle while, state attorney generals are more like watchdogs How a TikTok-driven complaint tsunami can further slow down the IRS File real evidence against a nonprofit with both the IRS and the state attorney general Resources from this Episode IRS Form 13909: www.irs.gov/pub/irs-pdf/f13909.pdf Sign up for the Birken Law Email list: birkenlaw.com/signup Facebook page: www.facebook.com/birkenlaw Follow and Review: We’d love for you to follow us if you haven’t yet. Click that purple '+' in the top right corner of your Apple Podcasts app. We’d love it even more if you could drop a review or 5-star rating over on Apple Podcasts. Simply select “Ratings and Reviews” and “Write a Review” then a quick line with your favorite part of the episode. It only takes a second and it helps spread the word about the podcast. Episode Credits If you like this podcast and are thinking of creating your own, consider talking to my producer, Emerald City Productions. They helped me grow and produce the podcast you are listening to right now. Find out more at https://emeraldcitypro.com Let them know we sent you.

In this episode of Charity Therapy, we’re diving deep into nonprofit finances to help you safeguard your organization from fraud. We’ll walk you through essential internal controls like segregation of duties, setting up a budget, and making sure transactions get a second set of eyes. Trust me, even if your team feels like family, these steps are crucial to keep everything above board. We also share a real-life nail-biter involving a nonprofit treasurer who’s up to no good—think missing funds and some shady behavior. We’ll break down the best ways to handle this sticky situation, from potentially taking legal action to quietly resolving things to protect your nonprofit’s good name. We’re here to help you figure out when to take the high road and when to call in the big guns. Throughout the episode, we sprinkle in a bit of humor and empathy because, let’s face it, dealing with financial fraud can be super stressful. We’ll remind you that you’re not alone and give you practical tips to prevent these issues from cropping up in the first place. Grab a cup of coffee, get comfy, and let’s tackle this together! In this episode, you will hear: The nitty-gritty of nonprofit financial controls Even if your team seems trustworthy, you still need those checks and balances! Why it's crucial to split up financial tasks among different people The dangers of having one person in charge of everything The magic of setting a budget and ensuring everyone’s on the same page about where the money’s going The juicy details of a real case where a nonprofit treasurer is suspected of sneaking $1,500 into their own account The tricky balance between going public and keeping things quiet Practical advice on whether to call the cops or handle fraud cases quietly to protect your nonprofit's reputation The difference between minor slip-ups and massive fraud.  How to deal with each situation and the importance of protecting your nonprofit's assets Key tips on internal financial controls, using budgets wisely, and focusing on what’s best for your organization Resources from this Episode Sign up for the Birken Law Email list: https://birkenlaw.com/signup/ Facebook page: https://www.facebook.com/birkenlaw Follow and Review: We’d love for you to follow us if you haven’t yet. Click that purple '+' in the top right corner of your Apple Podcasts app. We’d love it even more if you could drop a review or 5-star rating over on Apple Podcasts. Simply select “Ratings and Reviews” and “Write a Review” then a quick line with your favorite part of the episode. It only takes a second and it helps spread the word about the podcast. Episode Credits If you like this podcast and are thinking of creating your own, consider talking to my producer, Emerald City Productions. They helped me grow and produce the podcast you are listening to right now. Find out more at https://emeraldcitypro.com Let them know we sent you.