EP 07. New Nonprofit Compliance Basics: 990 Filings, SMART Goals, and Staying Tax-Exempt

EP 11. How Fiscal Sponsorship Lets You Raise Grants and Donations Before You Have 501(c)(3) Status

Most founders assume they need 501(c)(3) status before they can raise a single grant dollar. But there is a legal pathway that changes everything. Fiscal sponsorship allows mission-driven organizations to accept tax-deductible donations and apply for grants, long before completing the IRS process, and understanding how it works can save emerging nonprofits months of lost momentum. In this episode, host Olivia Froedge sits down with Gavin Funkhouser, Program Manager, Sponsorship Allies (FSA), to demystify the world of fiscal sponsorship from the inside out. Together, they break down the two primary models - Model A and Model C - exploring how each affects autonomy, fees, and day-to-day operations, and walk through real examples of who fiscal sponsorship is actually for, including seasonal charities, for-profit companies with charitable arms, and community startups that need a running start. Things You Will Learn: 1. How fiscal sponsorship works as a legal bridge for organizations not yet holding 501(c)(3) status, and why it is not just for startups. 2. The key differences between Model A and Model C fiscal sponsorship, including how fees, autonomy, and administrative support vary between them. 3. How to evaluate and choose a fiscal sponsor, including what questions to ask about IP ownership, fundraising minimums, and grant compatibility. Tools & Frameworks Covered: 1. Model A vs. Model C Framework: helps organizations understand the trade-offs between full administrative integration and independent charitable operations when choosing a fiscal sponsor. 2. Fee Percentage Analysis: helps nonprofits calculate the real cost of fiscal sponsorship against grant income, comparing sponsor rates (typically 4–15%) to determine financial fit before signing an agreement. 3. Fiscal Sponsorship Agreement Review: helps organizations protect their programs and intellectual property by understanding the ownership, autonomy, and exit provisions written into their sponsorship contract before signing. Helpful Resources * Charitable Allies: Fiscal Sponsorship Overview [https://charitableallies.org/fiscal-sponsorships-get-the-benefits-of-a-charity-without-being-one/] * Fiscal Sponsorship Allies (FSA) [https://fiscalsponsorshipallies.org/] #NonprofitLaw #FiscalSponsorship #501c3 #NonprofitLeadership #CharitableAllies ✅ SUBSCRIBE so you never miss an episode: YouTube: https://www.youtube.com/@charitableallies/podcasts Apple Podcast: https://podcasts.apple.com/us/podcast/501c-suite/id1854799490 Spotify: https://open.spotify.com/show/18IVmECOQ1MMOOthGrSkRh Want more help with your nonprofit’s bylaws? Visit https://charitableallies.org/

EP 10. How Nonprofits Can Know When It’s Time to Hire Their First Employee

Hiring too early can strain a nonprofit, but waiting too long can stall the mission. In this episode, host Olivia Froedge breaks down how nonprofits can tell when it’s truly time to hire their first employee. She explains the three key factors to evaluate before making the leap: work, money, and support, then walks through what hiring actually looks like in practice, from compensation research and payroll realities to board approval and compliance setup. Things You Will Learn: 1. How to tell whether your nonprofit needs more volunteers or its first employee. 2. How to calculate the real cost of hiring beyond base salary. 3. How to prepare your nonprofit legally and operationally for its first hire. Tools & Frameworks Covered: 1. Work, Money, Support framework: helps determine if your nonprofit is truly ready to hire 2. Comparable compensation research: helps set fair, realistic pay for nonprofit roles 3. PEO and payroll software options: help nonprofits manage payroll, taxes, and HR setup more confidently 👉 Can I make my nonprofit my full-time job? - https://charitableallies.org/can-i-make-my-nonprofit-my-full-time-job/ #NonprofitLaw #NonprofitLeadership #501c3 #NonprofitHiring #CharitableAllies ✅ SUBSCRIBE so you never miss an episode: YouTube: https://www.youtube.com/@charitableallies/podcasts Apple Podcast: https://podcasts.apple.com/us/podcast/501c-suite/id1854799490 Spotify: https://open.spotify.com/show/18IVmECOQ1MMOOthGrSkRh Want more help with your nonprofit’s bylaws? Visit https://charitableallies.org/

EP 09. What 501(c)(3) Nonprofits Can and Can’t Do in Political Activity

Political activity is one of the easiest places for nonprofits to get confused and one of the riskiest places to get it wrong. In this episode, Olivia Froedge is joined by Katie Buckner, nonprofit attorney at Charitable Allies, to break down what 501(c)(3) organizations can and cannot do in election years, from voter education and lobbying to candidate involvement, issue advocacy, and the difference between (c)(3) and (c)(4) entities. They unpack the fine lines nonprofit leaders need to understand, explain how lobbying rules actually work, and share practical guidance for staying compliant while still protecting your mission and speaking up on the issue that matter. Things You Will Learn: 1. How to tell the difference between permitted issue advocacy and prohibited partisan political activity 2. How to evaluate whether your nonprofit’s lobbying activity is compliant and trackable 3. How to decide when a (c)(3), a (c)(4), or a dual-entity structure may make sense Tools & Frameworks Covered: 1. Direct vs. Grassroots Lobbying: helps nonprofits understand what type of advocacy they are actually doing 2. Substantial Part Test vs. 501(h) Election: helps leaders measure lobbying limits with more clarity 3. c3 vs. c4 Structure Comparison: helps organizations choose the right compliance path for advocacy goals Additional Resource: 501(c)(3) Lobbying Limits: What Nonprofits Need to Know Before Advocating - https://charitableallies.org/501c3-lobbying-limits-what-nonprofits-need-to-know-before-advocating/ #NonprofitLaw #501c3 #NonprofitLeadership #NonprofitGovernance #PoliticalActivity ✅ SUBSCRIBE so you never miss an episode: YouTube: https://www.youtube.com/@charitableallies/podcasts Apple Podcast: https://podcasts.apple.com/us/podcast/501c-suite/id1854799490 Spotify: https://open.spotify.com/show/18IVmECOQ1MMOOthGrSkRh Want more help with your nonprofit’s bylaws? Visit https://charitableallies.org/

EP 08. Ask an Attorney: Real Nonprofit Leader Questions on Revenue, Compliance, and Governance

Most nonprofit challenges don’t start with bad intentions. They start with unanswered questions. In this “Ask an Attorney” episode from 501c Suite, Olivia Froedge is joined by Robert Miller, Managing Attorney at Charitable Allies, to answer real questions submitted by nonprofit leaders navigating revenue, compliance, and governance decisions. From selling products and charging for services to donor restrictions, fiscal sponsorship, audits, church filing rules, entity classification mistakes, and removing board members, this episode tackles the kinds of questions nonprofit leaders regularly ask but rarely get clear answers to. Instead of abstract legal theory, Robert walks through practical explanations that help nonprofit teams understand the rules, reduce risk, and make more confident decisions. If you’ve ever wondered how the law actually applies to day-to-day nonprofit operations, this episode brings real questions and straightforward legal education together in one place. Things You Will Learn: 1. Generate revenue through products or services without accidentally creating avoidable tax exposure. 2. Handle donor restrictions and salary questions with clarity and legal confidence. 3. Follow a clean governance process when facing board conflict or classification mistakes. Tools & Frameworks Covered: 1. UBIT (Unrelated Business Income Tax): evaluate when revenue is mission-related vs. potentially taxable. 2. Fiscal Sponsorship Model: accept tax-deductible donations while awaiting or bypassing separate exemption. 3. Form 8940 (Miscellaneous Determination Request): correct entity classification issues like accidental private foundation status. #NonprofitLaw #NonprofitCompliance #501c3 #NonprofitGovernance #NonprofitLeadership ✅ SUBSCRIBE so you never miss an episode: YouTube: https://www.youtube.com/@charitableallies/podcasts Apple Podcast: https://podcasts.apple.com/us/podcast/501c-suite/id1854799490 Spotify: https://open.spotify.com/show/18IVmECOQ1MMOOthGrSkRh Want more help with your nonprofit’s bylaws? Visit https://charitableallies.org/

EP 07. New Nonprofit Compliance Basics: 990 Filings, SMART Goals, and Staying Tax-Exempt

Most nonprofit problems don’t start with bad intentions; they just don't have all the information they need. In this episode, Olivia Cloer is joined by Will Gay, a Nonprofit Compliance Coordinator at Charitable Allies, to walk new nonprofit leaders through the most common early mistakes and how to prevent them, from skipping a real community needs assessment to setting vague goals, overlooking annual compliance filings, and letting bookkeeping get messy until 990 season becomes a scramble. You’ll learn what it takes to form and maintain a nonprofit legally, how 990 filing rules and deadlines actually work, how revenue impacts IRS filing paths (including 1023-EZ vs. full), why fundraising can trigger multi-state registration, and how simple internal controls protect your mission when staff or volunteers change. Things You Will Learn: 1. Build a practical first-year plan that connects mission to measurable results. 2. Set up a basic compliance system so you stay in good standing with the IRS and your state. 3. Create financial habits that make 990 filing straightforward instead of stressful. Tools & Frameworks Covered: 1. SMART Goals: turn your mission into trackable outcomes your team can budget and report on 2. Compliance Order of Operations: reduce startup confusion and prevent missed steps 3. Internal Controls (two-touch process): protect funds and continuity when people rotate in/out #NonprofitLaw #NonprofitCompliance #501c3 #NonprofitGovernance #NonprofitLeadership ✅ SUBSCRIBE so you never miss an episode: YouTube: https://www.youtube.com/@charitableallies/podcasts Apple Podcast: https://podcasts.apple.com/us/podcast/501c-suite/id1854799490 Spotify: https://open.spotify.com/show/18IVmECOQ1MMOOthGrSkRh Want more help with your nonprofit’s bylaws? Visit https://charitableallies.org/