Most small companies probably base their compensation policies on a simple analysis of the market: when hiring a new key employee, a company will likely determine how much money it can afford to spend on compensation, decide how much it will take to get the quality employee the company wants, and set the salary rate and benefits accordingly. While a 501(c)(3) nonprofit will likely make similar considerations, did you know that “excessive compensation” can result in penalty taxes (called “excise taxes”) under federal law?

Most organizations that Christians, especially Catholics, would typically think of as religious orders (convents of nuns, monasteries of monks, etc.) will qualify as religious orders for federal tax purposes with special exemptions. But there are many other types of religious organizations that may also qualify. Read on to get a better understanding of what federal tax law means by “religious order” and how the term differs from its common, non-legal use.

If you work with a faith-based nonprofit, serve on a board of directors, or are thinking of joining a board, you have likely heard that directors have fiduciary duties. These duties (typically the duties of care, loyalty, and obedience) bind directors to uphold certain standards of conduct in their service to the nonprofit organization. This resource will introduce you to the duty of loyalty.

If you work with a faith-based nonprofit, serve on a board of directors, or are thinking of joining a board, you have likely heard that directors have fiduciary duties (typically the duties of care, loyalty, and obedience) that bind directors to uphold certain standards of conduct in their service to the nonprofit organization. This resource will introduce you to the duty of care.

The Form 990 is a necessary part of the life and compliance of a faith-based nonprofit, because filing the Form 990 annually is a requirement for your organization to maintain its federal 501(c)(3) nonprofit status. But it also doesn’t need to be so intimidating!