A construction project is broken into phases. Considerations for each phase are addressed in separate installments of Napa Legal's new series on nonprofit construction written by Wes Hunnell. Read part three here, which discusses the design phase.

It is important to note that a construction project is broken into phases. Considerations for each phase are addressed in separate installments of this series on nonprofit construction. Part two discusses the design phase.

Faith-based and nonprofit construction is different. Just as commercial, residential, and infrastructure construction projects have different requirements, a construction project in the nonprofit sector has different requirements for a successful project. There are different risk tolerances and different legal considerations. A construction project is often one of the biggest investments a nonprofit will undertake — so preparation is essential for success considering these differences.

What is the IRS Form 990 and what does your organization need to know about it? What follows is a brief explanation of a specific section of the Form 990 and its relevance to nonprofits.1

In addition to maintaining a gift acceptance policy, a nonprofit should also maintain a charitable gift receipt template that it fills out and gives to a donor once it accepts a gift (both cash and in-kind gifts). Donations to tax-exempt organizations should only be deducted on a donor’s federal income tax return if the donor receives a receipt from a tax-exempt organization that serves as evidence that the donor contributed to a tax-exempt organization.