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142: Someone Get Me a Flux Capacitor! | What Happens When Your Nonprofit IRS Status is Revoked

Charity Therapy

Release Date: 07/10/2025

154: It's Gravy, Baby! | What is a Nonprofit Audit? with Hannah Hugen show art 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_outline 153: It's a Triple Whammy | How to Fix the Culture of Overwork at Your Nonprofit with Rachel Platt show art 153: It's a Triple Whammy | How to Fix the Culture of Overwork at Your Nonprofit with Rachel Platt

Charity Therapy

If your team is exhausted, overwhelmed, and constantly working nights and weekends, you might be dealing with more than a scheduling issue. You might be dealing with a culture problem that is hurting your mission. In this episode, I invited my friend and people strategy expert to talk with me about the hidden issues inside nonprofit overwork and what it really takes to build a sustainable organizational culture. Real Listener Question: I’m a new staff member, and everyone at this nonprofit works tons of overtime without being paid (as hourly employees). The ED works all the time, and the...

info_outline 152: That's Called Tax Fraud! | When an Entrepreneur has a 152: That's Called Tax Fraud! | When an Entrepreneur has a "Really Good" Nonprofit Idea

Charity Therapy

You’ve got a great business idea, people want to donate to help, and you’re thinking… “What if I just start a nonprofit?” Hold up — let’s talk about it. In this episode, Meghan and I tackle one of the most common (and most frustrating) misconceptions out there — when entrepreneurs try to mix business ventures with nonprofit structures. Real Listener Question: “I’m coaching a small business owner who wants to restore a historic hotel, turn it into an Airbnb, and start a nonprofit to collect donations for the renovation. He says it’s a win-win — is that legal?” This one...

info_outline 151: Give Mark Your Crap! | When a PEO is a Good Fit for Your HR Needs with Mark Bromberg show art 151: Give Mark Your Crap! | When a PEO is a Good Fit for Your HR Needs with Mark Bromberg

Charity Therapy

Nonprofit HR can be messy — but it doesn’t have to be. Let’s talk about when it’s time to call in reinforcements (and what “reinforcements” actually look like). I sat down with Mark Bromberg, a Business Performance Advisor at Insperity and one of my favorite people to send clients to when HR headaches start taking over. We dug into what PEOs (Professional Employer Organizations) really do — and when they make sense for nonprofits. Real Listener Question: “Our professional association has seven employees. We’re losing our CEO soon, and our board wants to consider...

info_outline 150: All Press is Good Press? | GoFundMe Creates 1.4M Nonprofit Donation Pages Without Consent with Ephraim Gopin show art 150: All Press is Good Press? | GoFundMe Creates 1.4M Nonprofit Donation Pages Without Consent with Ephraim Gopin

Charity Therapy

What happens when a for-profit giant “helps” nonprofits without asking first? Spoiler: chaos, confusion, and a lot of angry fundraisers. In this episode, I sat down with my good friend and fundraising pro, Ephraim Gopin of 1832 Communications, to unpack the wild story of GoFundMe auto-creating donation pages for 1.4 million nonprofits — without their consent. Real Listener Question: “What do we do if our nonprofit suddenly has a GoFundMe page we didn’t create? Is that even legal?” When news broke that GoFundMe scraped IRS data to create “official” donation pages for nonprofits,...

info_outline 149: Um, Actually... | How Many Times Should a Nonprofit Board of Directors Meet? show art 149: Um, Actually... | How Many Times Should a Nonprofit Board of Directors Meet?

Charity Therapy

If your board hasn’t met in ten months, that’s not just awkward — it’s a big problem. In this episode, Meghan and I dive into a basic (but often overlooked) part of nonprofit governance: how often a board needs to meet, and what happens when it doesn’t. Real Listener Question: “My wife joined the board of a small arts nonprofit, but they haven’t met once in ten months. The executive director sends quarterly updates by email — that’s it. Is that legal?” A board that never meets isn’t really a board — it’s a liability. Meghan and I talk about what state laws and bylaws...

info_outline 148: Type A Personalities Unite! | When Nonprofits Should (Or Shouldn't!) Use PEOs for Their HR with Jess Holst show art 148: Type A Personalities Unite! | When Nonprofits Should (Or Shouldn't!) Use PEOs for Their HR with Jess Holst

Charity Therapy

Think a PEO will solve all your nonprofit’s HR headaches? Not so fast — the fine print might surprise you. In this episode, I’m joined by HR consultant Jess Holst from to answer a listener’s question about whether a professional employer organization (PEO) is the right solution for their growing nonprofit. Real Listener Question: “We’ve grown from four employees to nearly twelve. I’ve been handling payroll and HR myself, but it’s becoming too much. A board member suggested a PEO, but it feels too good to be true. Should we do it?” PEOs get sold as a one-stop HR solution, but...

info_outline 147: Keep Doing You, Boo | Are Nonprofit DEI Initiatives Illegal? With Guest Megan Fuciarelli show art 147: Keep Doing You, Boo | Are Nonprofit DEI Initiatives Illegal? With Guest Megan Fuciarelli

Charity Therapy

Worried your nonprofit’s DEI programs might be illegal now? You’re not alone — and I can bet you won’t be able to find the right answer on social media. In this episode, I’m joined by Megan Fuciarelli from US2 Consulting to dig into what the latest EEOC guidance actually means for nonprofits trying to foster inclusion. Real Listener Question: “My nonprofit has employee resource groups (ERGs) for LGBTQ+, Latinx, Black, and AAPI staff. They’re popular, but I heard the EEOC says they might count as discrimination now. Do we need to shut them down, or is there a way to keep them...

info_outline 146: Groaning & Moaning | Why Record Retention & Data Management Systems Matter for Nonprofits show art 146: Groaning & Moaning | Why Record Retention & Data Management Systems Matter for Nonprofits

Charity Therapy

Think your nonprofit’s old emails and files are harmless? Think again. What you keep — and what you don’t — could save or sink your organization. It’s Jess Birken here, and I’m back with my co-host Meghan tackling a topic that sounds boring but is way more important than you think: data retention policies and how they protect your nonprofit. Real Listener Question: “I work at a nonprofit that serves trans youth. If the government starts targeting nonprofits, what can we do now to prepare and protect our data?” If your organization collects sensitive participant info, donor...

info_outline 145: Astronauts vs. Scuba Divers | Can You Convert a Failing Business Into a Nonprofit? show art 145: Astronauts vs. Scuba Divers | Can You Convert a Failing Business Into a Nonprofit?

Charity Therapy

If your business is struggling, can you save it by turning it into a nonprofit? Short answer: probably not. It’s Jess Birken here, and I’m back with my co-host Meghan tackling a super common question from business owners who think running a nonprofit might be an easier path. Real Listener Question: "I'm an instructor at a small figure skating school. It's been around for 30 years, but we're not making ends meet. The current owner doesn’t want to run it anymore. Can we convert it into a nonprofit so we don’t have to make a profit or have an owner?" We hear this one a lot. A business...

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Your nonprofit's 501(c)(3) status just got revoked – now what? Don't panic! Your organization still exists, but here's what you need to know.

It's Jess Birken here, and I'm back with co-host Meghan to tackle one of the most common (and scary-sounding) nonprofit disasters: losing your tax-exempt status.

Real Listener Question: "Our 501(c)(3) was revoked last year, and we have a community cleanup event coming up. Can we still do this event? Are we open to more liability?"

We're breaking down the biggest misconception about revoked tax status – your nonprofit doesn't disappear when you lose 501(c)(3) status! Plus, we're calling out "Uncle Larry" (you know, that volunteer who promised to handle your 990s for free) and explaining why delegation doesn't absolve board responsibility.

What You'll Learn:

  •   Why nonprofits lose tax-exempt status – the "three strikes" auto-revocation rule
  •            What revoked status actually means vs. what people think it means
  •            Whether you can continue operations and events without 501(c)(3) status
  •            The real liability risks (spoiler: probably not what you think)
  •            Why your insurance policies don't automatically change when status is revoked
  •            Board responsibility for compliance – delegation isn't abdication
  •            How to move forward without beating yourself up over past mistakes

Bottom line: Losing 501(c)(3) status is like changing your tax filing status from "married" to "single" – you still exist, you just need to get your label back. Remember: This happens to small nonprofits all the time. You're not alone, and it's fixable. Focus on moving forward, not beating yourself up.

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