PLST 380
INTERVIEW ASSIGNMENT INSTRUCTIONS
You will conduct an interview with an executive of a nonprofit organization, asking
questions about the nonprofit, including its mission and challenges. You will also ask
about the legal issues and taxation-related issues that the nonprofit faces. You will then
prepare a 2,000-word memorandum in current Bluebook format discussing the interview
and detailing what you learned. No references are required for this assignment unless
appropriate. College-level writing—including correct use of English grammar and proper
and current Bluebook format—is required.
Interview Assignment Guidelines:
You will identify a professional working in an upper-management position in a
nonprofit organization.
You will set up an interview with the professional.
The selected professional may be active or retired.
The Interviews:
Identify yourself as a paralegal student doing research and make it clear that you
will take no more than 30 minutes of the interviewee’s time.
Explain that you are in a nonprofit-law course for paralegals.
Tell the interviewee that you have identified him or her as a professional working
in the nonprofit sector and that you wanted to find out such a professional’s
perspective on the importance of an understanding of the law governing
nonprofits and their activities, including taxation law. Have a good reason (e.g.
personal knowledge, an article you have read, testimony of subordinates, etc.).
Discuss some of the core academic concepts you have learned in the course. You
can find a good list to get you started by looking at the textbook’s table of
contents, reviewing the course documents and assignments, etc.
Be sure that you can contact your interviewee again if you need to ask follow-up
questions.
Memorandum Criteria:
Draft a 2,000-word memorandum providing a description of the interview and
what you have learned about the importance of an understanding of the law
governing nonprofits to those working in the nonprofit sector.
Your memorandum must be in current Bluebook format.
Sources to support your discussion are not required unless appropriate.
Submit this assignment by 11:59 p.m. (ET) on Monday of Module/Week 6.
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Understanding Non-profit Organization’s Legal Issues
Student’s Name
Course Name
Tutor’s Name
Date
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Table of Contents
Introduction...............................................................................................................................3
Importance of Understanding Law Governing Non-profit Organizations .............................3
Managing Nonprofit Organization’s Employees .....................................................................5
Do Nonprofit Organizations Pay Taxes? ..................................................................................6
Common tax Exemptions for Non-profit Organizations .........................................................7
Taxes Non-Profit Organizations Are Allowed to Pay ..............................................................8
Facts About Form 990 ...............................................................................................................8
Cg as The Auditor for Non-Profit Organization ......................................................................9
Conclusion .................................................................................................................................9
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Understanding Non-profit Organization’s Legal Issues
Introduction
Non-profit organizations have existed for decades, and most people have not known how
they operate. Of course, some of this information may not be available to the public, but through
a personal encounter with volunteers or employees, one can have a rough figure of how they are
managed. At times, one may have clues from classwork, but it is interesting to see how some of
these facts are implemented at these organizations. Based on an interview encounter with non-
profit personnel, the following research paper seeks to discuss some of the core academic
concepts and draft a memorandum that clarifies the importance of the law governing non-profit
organizations their employees.
Importance of Understanding Law Governing Non-profit Organizations
The non-profit organization, just like any other business firm, is expected to abide by the
government laws for smooth running. Indeed, most non-profit organizations have exerted a
profound influence on the extent and determination of international law. Most organizations
foster treaties promote and create organizations that lobbied to the national capital to expand
international rules. Based on my interview with a United Nations personnel, it is clear that the
temple of States would be very dull without non-profit organizations' assistance. To some extent,
if the non-profit organizations did not exist, international laws would not have a less vibrant role
in human progress. Usually, it has been campaigning for states to realize the global dimensions
of what was initially viewed as a decently domestic matter. As matters arise in the international
pool, interested non-profiting organizations designed deferrals or networks with other
governments in different nations. This trans-nationalism has acted as a foundation of strength
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for most organizations in their numerous governments. The non-profit organizations work as
flush against the criticisms of authority.
Therefore, the contribution of non-profit organizations such as United Nations to the
vitality of international law is a mystery since international laws are comprehended as a product
of government positiveness. The puzzle's primary key is the relationship between the non-profit
organization with the separate party that is charitable. In this regard, parties joining the non-
profit organization are a result of the commitment to its objective. It is the objective alongside
other non-profit organizations that gives the United Nations legal authority to act on issues. This
motivation distinguishes Non-profit organizations from international organizations whose
obligations are determined and limited by the government. Thus, the non-profit organizations do
not achieve their influence through delegation by the ruling government. Instead, it reaches its
mark through the attractiveness of its values and ideas. For this reason, no non-profit
organization has guaranteed influence, not even the most respected ones like Red Cross; the
result must continually be earned.
However, it is essential to mention that a non-profit organization such as United Nations
can change a nation's behavior, but in most cases, it does not. To determine the strength of a
given non-profit organization is cumbersome. Sometimes, it is complicated due to many
emotional issues opposing non-profit organizations based on its stands on aspects. Over the last
decade, most non-profit organizations were consistent in advocating for the world’s public order.
In the contemporary era, most non-profit organizations support the international rule of law.
Most non-profit organization, such as the United Nations, follow their leads. Although some
non-profit organizations have received attention over the last decade by researchers of
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international relations and law, the sector for legal researches is barely new. Therefore, the
following illustration can summarize how most non-profit organization meet their objectives.
Managing Nonprofit Organization’s Employees
Nonprofit organizations are not any different from other organizations. They comprise of
hired employees who were hired by human resources. It is these employees that drive the
mission of the charitable nonprofits. Based on the interview conducted, the human resource
could be referred talent since the employee must possess some of the attributes capable of
turning an average firm into a high-performing firm.
Thus, investigating some of these talents is fundamental in nonprofit organizations. For
instance, the organization focuses on questions (misperceptions) the human resource hears about
hiring in non-profit organizations. For example, one can be asked if hiring at the non-profit
organization is different from other firms and should respond with a true or false answer. In this
case, False is a myth that non-profit organizations is excused from the government and the
federal employment laws. It is essential to mention that the National Council of Non-profit
organizations inspires all non-profits firms to be conversant with employment laws that apply to
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workers in regions where the non-profit organizations operate. Taking an example of the United
Nations, it was clear that state associations of non-profits often offer education and practices in
their newsletters about how workers should be handled. In general, workplaces comprising 15
employees and above are always taken care of by the deferral employment law.
In most cases, the personnel providing services in non-profit organizations are classified
as independent contractors or workers, if not volunteers. The non-profit organization comprises
several legal obligations that are most dependent on employees’ classification; hence, it is vital
to mention and help employees recognize what appropriate category to manage employees’
expectations about compensations and tax holdings. Employees’ compensation insurance cover
in addition to other benefits that may apply to that employee. Suppose employment laws are
complicated and subject to alteration. In that case, it is beneficial to charitable non-profit
organizations to have resources at hand to access when they are faced with employment matters.
Do Nonprofit Organizations Pay Taxes?
In a nutshell, the non-profit tax situation seems cloudy. Even after the interview with
united Nations personnel, it was clear even the management is sometimes not conversant with
the organization’s tax structure. When started a non-profit organization, the issues of tax
payment might leave with more questions as to whether non-profit organizations are eligible for
taxation or not. The interview became clear that the nonprofit’s organization requirements are
sophisticated and depend on their purposes, activities, and city’s standards if not more standards.
There are close to twenty-seven divergent types of nonprofits in the united states as per the
federal tax code, and some have not been exempted from taxation. However, such scenarios are
not expected, given that most non-profit organizations are eligible for some tax advantage.
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Common tax Exemptions for Non-profit Organizations
There are some common exemptions to nonprofit firms' taxations; the well-known one is
501(c)3. The majority of non-profit organizations like the united nations fall in this
classification, enjoying this benefit. To begin with, they are not obligated to pay federal income
tax. Often, the organization falling in this classification won’t be obliged to pay income tax t the
government, provided they have their IRS; letter of determination awarded by the state’s
department of revenue. A large portion of 501(c)3 exempt non-profits organizations, just like the
united nations, are exempted from property and sale taxes. But the organization must meet some
standards:
Retain its status of tax-exemption
From the conducted interview, it was clear that the government's tax exemption is not an
easy thing; if so, nearly all companies could avoid it in the united states. For a non-profit
organization to be exempted from tax payment, it needs to be religious, educational, scientific,
literate, preventing child and animal cruelty, and public safety. After the startup stage, the non-
profit organizations need to maintain their accounting and financial practices or be forced to pay
taxes. In this regard, most non-profit organizations, just like the united nations, have profited
from employing a Cg CPA to retain its status. If the non-profit organization has been exempted
from taxation, it needs to do the following:
Make sure that the non-profit organization does not benefit private entities, corporations,
or individuals. The income of the firm should solely be for benevolent purposes and not
individual gain.
The non-profit organization should not consider changing its intended goals or obtain
income from practices unrelated to the initial objective. For instance, if a given non-profit
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organization advocates for an after-school literacy program, the organization should not
benefit from selling possessions like t-shirts.
The non-profit organization should not campaign or support political campaigns. An
individual employee can do so to any candidate of his/her choice, but the non-profit
organization should not participate in any political plans.
Abide by the accepted accounting values and, if needed, employ a reputable CPA like Cg
to be conducting the yearly audit.
If the non-organization is blessed to more gross receipt of above $200,000 annually, the
firm needs to file for a 990EZ or form 990.
Taxes Non-Profit Organizations Are Allowed to Pay
Based on the united Nations personnel's conducted interview, non-profit organizations
are exempted from corporate and individual taxes. There are some scenarios under which they
need to pay tax. For instance, if the given non-profit organization obtains money from a
divergent purpose, the government will pay that income taxes. Likewise, any non-profit that
employ workers will also be required to pay worker’s taxes like Medicare, social security, and, in
some rare cases, unemployment taxes. But some nations do not subject the non-profit
organizations to taxation; instead, they have specified fees or particular standards to be met.
Therefore, it's good for organizations to understand some of the laws governing non-profit
organizations in a given nation.
Facts About Form 990
Most tax exemptions for non-profit organizations are religious and political. They are
often required to file a 990EZ, 990-N, or IRS for 990, depending on the firm’s income. In
general, this is the picture for most non-profit business practices, including assets, liabilities,
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expenses, and revenues. This documentation's primary purpose is to hold the organization
accountable for the stated mission and not individual pursuits or even other business ventures.
The information documented in this form is available to the public. The personnel stressed that
anyone who does not need such information to be made public needs to restrict its expenditures.
Cg as The Auditor for Non-Profit Organization
Most non-profit organizations prefer to use preferred and reputable auditors. They have a
long history of good performance to oversee everything in its place. From the interview, it was
clear that numerous variables need to be taken care of; the same variables determine the type of
taxes a non-profit can pay. Fortunately, for the united nations, they carry out internal audits in
addition to external ones. Given that there are no disparities in the results, the firm knows that it
in good health. Otherwise, it can be subjected to penalties that might spoil the reputation of the
firm. From the interview, one can also acknowledge the excellent work of auditors and determine
a firm’s financial success.
Conclusion
In summary, most non-profit organizations are not after making profit but to achieve their
desired charitable mission in society. Even though there are volunteers, some non-profit
organizations such as the United nations hire employees who are qualified and demonstrate
specific attributes. In an interview with one of their employees, it was interesting to see some of
the concepts learned in class are being put into practice. The law governs everything; when a
non-profit organization fails to operate under the intended purpose, it is subjected to penalties
where it can pay taxes as required. Through the interview, one can see how non-profit
organization handles legal issues and taxation.
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