138: Trump Vs. Harvard | Can the President Revoke a Nonprofit’s Tax-Exempt Status?
Release Date: 05/15/2025
163: A Runway of Snacks | Can a Religious Nonprofit Apply for Status with the IRS 1023-EZ Short Form?
Charity Therapy
So you’re a charity grounded in religious values. Does that make you a church in the eyes of the IRS? Meghan and I dig into a listener question that had me doing a genuine double take. A religious nonprofit submitted the 1023-EZ short form and got rejected because the IRS decided they were a church. What gives?! Real Listener Question: “The IRS rejected our 1023-EZ because they think we are a church, which would require the full 1023 form. But we are not a church. We are a religious organization. How do I fix the application to get them to accept our 1023-EZ?” Meghan and I break down the...
info_outline
162: No, Not the Tomatoes! | Are Nonprofit Startup Costs Tax-Deductible Donations for the Founder?
Charity Therapy
You scraped together your own money to start a brand-new nonprofit. You’re out the money, but can you at least take a tax deduction? Meghan and I are back with a question from a new nonprofit founder who wants to know if the startup cash they put in before getting their 501c3 status counts as a tax-deductible donation. It's one of the most common questions we hear from new founders, and the answer involves a pretty handy IRS rule most people don't know about. Real Listener Question: “In June 2025, two friends and I created a housing placement nonprofit and each put our own money in to get...
info_outline
161: A Rinky-Dink Outfit | Why Recording In-Kind Donations Matters For Your Nonprofit
Charity Therapy
Your nonprofit is doing real work, but do your financials show it? In this episode, Meghan and I tackle a listener question from a small nonprofit that's running into a big problem: their numbers don't match their story. The for-profit company supporting them pays for nearly everything, but none of that shows up on the books, and funders are raising eyebrows. Real Listener Question: “Our employees, office space, and equipment are all paid for by a for-profit company and donated to our nonprofit. Our financials make it look like we're barely doing anything. I've been tasked with finding major...
info_outline
160: Indiana vs Minnesota Throwdown | Can Business Interruption Insurance Help Nonprofits Who Closed During ICE Raids? With Cody Wiswasser
Charity Therapy
Your nonprofit closed its doors because of ICE enforcement or federal funding cuts. Is there an insurance policy that could actually help? Maybe, but the answer is a lot more complicated than you'd hope. In this episode, I'm joined by Cody Wiswasser, an insurance professional at , to dig into my questions. With so much uncertainty hitting nonprofits right now, I needed to know whether business interruption insurance is something my clients should actually be thinking about. Here’s the situation: Can nonprofits get business interruption insurance? Are closures for ICE raids or funding cuts...
info_outline
159: Reporter on the Street | Can You Use Retirement Funds to "Invest" In A Nonprofit? With Jeff Beck
Charity Therapy
Do you know someone eyeing their retirement accounts to fund their nonprofit dreams? We need to talk! In this episode, I'm joined by , a wealth advisor at , to tackle a listener question that had me equal parts fascinated and horrified. Real Listener Question: “My partner has a traditional IRA with about $100,000 in it. Can she invest that money in my 501(c)(3) without penalties? Do we need to set up a for-profit company for her IRA to invest in first? Are there IRS rules against her investing in something I founded and run?” Jeff and I dig into the mechanics of IRAs, self-directed...
info_outline
158: Is Your Ringer On? | How Nonprofits Can Find and Hire a Good Lawyer
Charity Therapy
Finding a lawyer should not feel harder than solving the legal problem itself. And yet, here we are. In this episode, Meghan and I talk about something that comes up constantly in my nonprofit law practice: how nonprofit leaders and boards actually find a good lawyer and how to tell whether someone is the right fit. Real Listener Question: “I am a board member tasked with finding my small nonprofit a lawyer. I am trying to collect five options for the board to review and have the board interview each lawyer. I’ve prepared an RFP to get information from as many firms as possible. Is there...
info_outline
157: Old Woman Shakes Fist at Sky | How Classy May Be Hurting Your Donor Relationships
Charity Therapy
Nonprofit newsflash - your donation platform might be quietly annoying your biggest donors 😬 In this episode, Meghan and I dig into some nonprofit LinkedIn drama sparked by a from the one and only . Here’s the situation: You gave a big donation, and you received an auto-generated donation receipt from the org’s donation platform. The problem? The gift acknowledgement letter and receipt are WRONG. We break down why donor acknowledgement letters matter so much, what the IRS actually requires in those receipts for gifts over $250, and how automated systems can unintentionally...
info_outline
156: Captain Depressio Reporting for Duty | Can Nonprofits Give Tax-Free Money to People?
Charity Therapy
Nonprofits are tax-exempt, so lots of people assume that nonprofits don’t have to worry about taxes ever. Right???? Well, not quite 😐 In this episode, Meghan and I dig into a question I hear all the time from people who want to help their communities but are confused about how nonprofit tax rules actually work. Real Listener Question: “I own a couple of restaurants and we have several events to raise money for certain causes. Usually the money goes toward a charity or a local group, but sometimes we'll do it for a community member who needs financial support. The problem we're seeing is...
info_outline
155: Baby Don’t Hurt Me | What To Do When a Donor Gift Harms More Than Helps
Charity Therapy
You’re getting donations for a nonprofit – and that’s great! But sometimes generosity comes with strings you never expected. In this episode, Meghan and I dig into the wild world of donor gifts and why nonprofits need clear guardrails to protect themselves from gifts that actually hurt the nonprofit. Real Listener Question: “We have a donation button on our website where people can give online and set up recurring donations for monthly contributions. A few weeks ago, someone set up a daily 50 cent donation. Our accountant looked into it and is saying that it's not fraud or anything...
info_outline
154: It's Gravy, Baby! | What is a Nonprofit Audit? with Hannah Hugen
Charity Therapy
Think an audit is something to fear for your nonprofit? I get it! But what if it’s actually a powerful tool for growth? In this episode, I sit down with nonprofit auditor Hannah Hugen from to unpack what an audit really is and why it’s not nearly as scary as it sounds. Real Listener Question: “We filed the 1023-EZ and said we’d stay under $50K… but now a funding opportunity would push us past that. Will the IRS audit us? Should we say no to the money?” Hannah and I dig into what an audit actually involves, what the IRS does (and doesn’t) care about, and how nonprofits can...
info_outlineIn this episode of Charity Therapy, we’re tackling a big question from the headlines - can the President choose whether you get tax exemption? While President Trump may threaten a university like Harvard, what can he actually do?
Meghan and I break down what the President can and cannot do with nonprofits AND what it would like to really lose your tax exemption. Spoiler alert - it’s not a quick process! In this episode, we’ll bust some myths and give you the lowdown on how these things really work and what to do if you ever find yourself in a sticky situation.
Worried about the political winds shifting against your nonprofit? You’re not alone! We’re tackling those concerns head-on, especially for organizations whose missions might not sit well with the Trump administration. We’ve got your back with some solid strategies to stay resilient, like focusing on building strong relationships with donors and staying on top of IRS compliance. Remember, it’s not about panicking but being prepared and informed.
The main message is this: don’t let fear take the wheel. Whether you’re worried about rule changes or just want to make sure your nonprofit is on solid ground, we’re here to guide you through it all with a smile and a bit of humor. So tune in, get comfy, and let’s navigate these political waters together!
In this episode, you will hear:
-
How the IRS goes about revoking an organization’s tax exempt status
-
Whether the president can single-handedly revoke a nonprofit's tax status
-
What powers the president really has in an executive order over nonprofits
-
How nonprofits in hot-button mission areas can prepare to weather the storm of increased scrutiny under this administration
-
The important preventative measures every nonprofit should be taking, no matter the political environment
Resources from this Episode
Download my 2025 Survival Guide: https://birkenlaw.com/2025-survival-guide
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.