Charity Therapy

What if you could hang out with experienced nonprofit professionals and ask them your burning questions about the day-to-day life of nonprofits? What if you could take their wisdom and bring it back to your organization, for free? That's what we do on Charity Therapy. Hosted by Jess Birken - owner and lawyer at Birken Law Office. Every episode is an in-depth look at how to run a nonprofit, from fundraising to IRS woes to people problems and more! Our goal is to empower nonprofits to achieve your mission by doing things right.

170: Shots Fired! | Can a Nonprofit Fire Its Own Board? 08/06/2026

170: Shots Fired! | Can a Nonprofit Fire Its Own Board? What if you could just... skip the whole “having a board of directors” part of running a nonprofit? Turns out, you’re not the only one who've thought about it! We all know every nonprofit pro has quietly wondered at some point whether they really need a board at all. This week's listener question puts that quiet part out loud, and we dig into what's really going on when a board goes off the rails. Real Listener Question: “I work for a small business league and our whole board is useless. They do nothing to help us but keep finding random projects for us to do. The directors all say they're too busy for their normal board duties. My ED and I are wondering if there's a way to get all the board members to just sign away their roles so we don't have to have a board at all. Can we do that?” Meghan and I break down what a board is actually supposed to do, why some people join boards for reasons that have nothing to do with the mission, and why "let's just get rid of them" is a fantasy (even though the underlying frustration is very real). What You'll Learn: What the core job of every nonprofit board actually is Why some boards drift into micromanaging staff and how it happens Why "signing away" board roles isn't a legal option (sorry!) What to do when board members treat staff like their personal assistants Why board and staff relationships are hard for every nonprofit When it's time to bring in outside training for your board Bottom line: It's completely normal to be frustrated with your board. You're not alone. But the answer isn't getting rid of them. It's figuring out what your board is actually there to do and getting them back on track. Resources from this Episode Previous Episode: Episode Transcript: Connect with Us Jess Birken: Meghan Heitkamp: Listen & Engage Listen on | | | Rate & Review on : Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: Stay Connected Sign up for the Birken Law Email list: Follow us on , , /episode/index/show/charitytherapy/id/42331890

169: Different Flavors, Same Ice Cream | How Can a Nonprofit Organization Offer Retirement Benefits? with Christopher Tipper 07/23/2026

169: Different Flavors, Same Ice Cream | How Can a Nonprofit Organization Offer Retirement Benefits? with Christopher Tipper Your nonprofit is doing well, but you're worried you'll lose good employees if you don't offer retirement benefits. You’ve heard of a 401(k), but is that the right move? I'm joined by of to break down retirement benefit options for small nonprofits. Christopher helps us wade through the alphabet soup of 403(b)s, 401(k)s, and simple IRAs. Real Listener Question: “I’m an Executive Director of a small org, and I've been advocating to my board that it's time to offer more benefits, including a 401(k). I realize it's a selfish ask since I'd benefit too, but I think it would help us recruit and retain good people. I started researching and I'm already in over my head. How do I even begin?” Christopher and I walk through the retirement plan options that actually make sense for small nonprofits, why the 401(k) isn't always the best fit, and what the ED needs to know before pitching this to their board. What You'll Learn: What retirement plan options nonprofits can consider and which ones actually make sense Why a simple IRA might be the easiest and cheapest option for small orgs What a 403(b) is and why only 501(c)(3) organizations can offer one Why the "highly compensated employee" definition is not what you think it is What compliance really costs and what to budget per eligible employee Why AI is genuinely dangerous for retirement plan advice Bottom line: If you're the ED asking whether it's a conflict of interest to advocate for retirement benefits, stop worrying. The board decides. Your job is to make the case, not to feel guilty about being included. Resources from this Episode Learn about Christopher Tipper's firm at Watch Christopher's videos: Previous Episode: Episode Transcript: Connect with Us Jess Birken: Christopher Tipper: Listen & Engage Listen on | | | Rate & Review on : Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: Stay Connected Sign up for the Birken Law Email list: Follow us on , , /episode/index/show/charitytherapy/id/42187275

168: Oh, You Dreamers | Can a Flat Organizational Structure Work for a Nonprofit? with Dr. Pablo Otaola 07/09/2026

168: Oh, You Dreamers | Can a Flat Organizational Structure Work for a Nonprofit? with Dr. Pablo Otaola A nonprofit was built to run like a co-op. Everyone's equal. There's no HR. Is that your dream, or a nightmare that feel suspiciously like high school? I'm joined by , CEO of , to tackle a listener question about this exact scenario. An executive director walked into an organization built on flat structure ideals, but instead of a utopia they found bullying, cliques, and power plays.. Real Listener Question: “I'm an ED for a nonprofit with a flat structure. We supposed to run like a co-op, where everyone but the board and ED shares the same title. The goal was to create a fair and equitable environment, but in practice it's like high school. Bullying, power plays, cliques trying to control the group with zero accountability. How do I change the organization?” Pablo and I break down the problems we’ve seen with flat organizational structures, what actually creates a thriving culture, and how a nonprofit leader can start changing the DNA of an org that's been stuck for years. What You'll Learn: The building blocks of a healthy organizational culture Why flat structures look SO good on paper but may fall flat (pun intended!) in real life Why "no HR" is a legal red flag no matter how good your intentions are How a leader's personality can get embedded into org culture What it really takes to change a culture that’s been encoded for years When to stop reading blogs and get outside help from someone who's done this before Bottom line: You don't hire the surgeon not to cut you. If your culture is broken, it's okay to ask for help. Change is uncomfortable, but it’s the only way forward! Resources from this Episode Learn more about Pablo’s work at Thriving Culture LLC: Previous Episode: Episode Transcript: Connect with Us Jess Birken: Dr. Pablo Otaola: Listen & Engage Listen on | | | Rate & Review on : Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: Stay Connected Sign up for the Birken Law Email list: Follow us on , , /episode/index/show/charitytherapy/id/42017115

167: A Lawsuit Magnet | Do Nonprofits Really Need Directors and Officers Insurance? With Cody Wiswasser 06/25/2026

167: A Lawsuit Magnet | Do Nonprofits Really Need Directors and Officers Insurance? With Cody Wiswasser You're sitting on a nonprofit board. You haven't done anything wrong. Could someone really sue you personally over it? The unfortunate answer is YES, and the costs can pile up fast. I'm joined by Cody Wiswasser, an insurance professional at , to tackle a question from a small animal rescue trying to decide whether directors and officers insurance is actually worth the cost. The short answer is yes, but Cody walks me through why that is, and what most nonprofit boards don't realize about their exposure. Real Listener Question: “We recently learned about directors and officers insurance but I'm not sure if it's really necessary. I’m worried the cost will be prohibitive for her. I don't want some litigious person to come after me for something stupid, but we work in a small community where everyone knows everyone. Is this really worth it?” Cody and I break down what D&O insurance actually covers, why most claims aren't what you'd expect, and why every nonprofit needs this coverage no matter how small. What You'll Learn: The two insurance policies every nonprofit needs at a minimum Why most D&O claims come from interpersonal disputes What a "prominent person lawsuit" is and why it matters for wealthier board members Why even frivolous lawsuits can cost $10,000+ to make them go away The difference between A-side, B-side, and C-side D&O coverage Why talking to an insurance broker should happen when you start, not years later Bottom line: No one is going to wave their fairy dust over your nonprofit just because you're doing good work. Plan for risk like you mean it and protect your board before something goes wrong. Resources from this Episode Learn more Community Partners Insurance Group at Previous Episode: Episode Transcript: Connect with Us Jess Birken: Cody Wiswasser – reach out at: Listen & Engage Listen on | | | Rate & Review on : Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: Stay Connected Sign up for the Birken Law Email list: Follow us on , , /episode/index/show/charitytherapy/id/41798255

166: This Could Have Been An Email | What Is Nonprofit Strategic Planning? with R. Perry Monastero 06/11/2026

166: This Could Have Been An Email | What Is Nonprofit Strategic Planning? with R. Perry Monastero Your nonprofit hosted its first ever strategic planning retreat… and it was a complete disaster. So, what do you do now?? I'm joined by , owner of , to dig into a listener question that had us both saying "oof" out loud. A brand new board member sat through a nightmare retreat full of college-style exercises and definition debates. They want to help the board get back on track, but they don't want to step on toes as the newest person in the room. Real Listener Question: “We had our first ever strategic planning retreat, and it was a NIGHTMARE. We came up with words like ‘diversity’ and ‘integrity’ and sat around debating definitions for the entire retreat. Afterwards, the ED and president drafted a new mission statement and emailed it to the board with a litany of questions. I want to help us get back on track. What do I do?” Perry and I break down what strategic planning actually is, why this retreat probably wasn't really strategic planning at all, and how a new board member can navigate the situation gracefully. What You'll Learn: What real nonprofit strategic planning looks like versus what a lot of orgs end up doing Why a retreat without a facilitator is often a setup for disengagement Why "this could have been an email" is the millennial response to bad governance How to ask great questions as a new board member without ruffling feathers Why you don't have to do a deep-dive strategic plan every single time When to bring in outside expertise and where to find reliable nonprofit resources Bottom line: You wouldn't have your best friend clean your teeth instead of a dentist. So why would you skip professional support for one of the most important conversations your nonprofit will have? Resources from this Episode R. Perry Monastero / RPM Consulting Group: BoardSource: National Council of Nonprofits: Standards for Excellence Institute: Episode Transcript: Connect with Us Jess Birken: R. Perry Monastero: Listen & Engage Listen on | | | Rate & Review on : Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: Stay Connected Sign up for the Birken Law Email list: Follow us on , , /episode/index/show/charitytherapy/id/41605350

165: The Past Tense of Sync | How to Get a New IRS Determination Letter 05/28/2026

164: Ermahgerd! | How to Evaluate Executive Director Performance with Debbie Rabishaw 05/14/2026

164: Ermahgerd! | How to Evaluate Executive Director Performance with Debbie Rabishaw So a nonprofit hires an Executive Director, skips all the onboarding, sets no goals, and now… wants to fire them. Yikes! I'm joined by , founder of HR consulting firm , to tackle a listener question that has more layers than an onion. A small nonprofit is in the middle of transitioning from a working board to a governing board, their new ED is getting mixed reviews, and some board members have already gone rogue. Things are messy, and Debbie and I have thoughts. Real Listener Question: “We hired a new executive director a year ago but didn't set any goals for her. A new evaluation committee sent out an anonymous staff survey and got mixed results, including some poor feedback. Now some board members want to demote her and split her role. I'm thinking of proposing a performance improvement plan, but we haven't documented any issues. What's the best way forward?” Debbie and I dig into what this board is actually dealing with, why the response feels disproportionate to the situation, and what good performance management actually looks like for a nonprofit's first employee. What You'll Learn: What the relationship between the board and Executive Director SHOULD look like Why you can't put someone on a PIP if you never set expectations in the first place How to course correct when things didn’t start off the right way Why the board needs to look at its own responsibility before pointing fingers What anonymous stakeholder surveys can and can't tell you about performance Why employment law applies to your nonprofit no matter how small you are Bottom line: You can't hold someone accountable for expectations that were never set. Own your part, reset the compass, and give this hire a real chance to succeed. Resources from this Episode Learn more about Debbie at Previous Episode: Can a Religious Nonprofit Apply for Status with the IRS 1023-EZ Short Form?: Episode Transcript: Connect with Us Jess Birken: Debbie Rabishaw: Listen & Engage Listen on | | | Rate & Review on : Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: Stay Connected Sign up for the Birken Law Email list: Follow us on , , /episode/index/show/charitytherapy/id/41286865

163: A Runway of Snacks | Can a Religious Nonprofit Apply for Status with the IRS 1023-EZ Short Form? 04/30/2026

163: A Runway of Snacks | Can a Religious Nonprofit Apply for Status with the IRS 1023-EZ Short Form? 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 key difference between a church and a religious nonprofit, why the IRS treats them differently, and what this listener may have done wrong on their application. Plus you’ll get a classic Jess Birken rant about why the IRS doesn’t make any sense! What You'll Learn: How the IRS defines a church versus a religious nonprofit organization How churches file (or don’t file) for their tax-exempt status How religious charities are treated differently than churches, mosques, temples, etc. The most common mistakes people make on the 1023-EZ that trigger a rejection How one wrong checkbox or one poorly worded sentence can get your application flagged How to fix your application and get it into the right bucket Bottom line: The IRS puts churches and religious nonprofits in different buckets. Knowing which one you are and how to say it on your application makes all the difference. Resources from this Episode See the eligibility worksheet for Form 1023-EZ: File using our Do-It-Yourself 1023-EZ Tool: Watch the Righteous Gemstones: Previous Episode: Are Nonprofit Startup Costs Tax-Deductible Donations for the Founder? Episode Transcript: Connect with Us Jess Birken: Meghan Heitkamp: Listen & Engage Listen on | | | Rate & Review on : Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: Stay Connected Sign up for the Birken Law Email list: Follow us on , , /episode/index/show/charitytherapy/id/41053865

162: No, Not the Tomatoes! | Are Nonprofit Startup Costs Tax-Deductible Donations for the Founder? 04/16/2026

161: A Rinky-Dink Outfit | Why Recording In-Kind Donations Matters For Your Nonprofit 04/01/2026

161: A Rinky-Dink Outfit | Why Recording In-Kind Donations Matters For Your Nonprofit 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 funders and the narrative just doesn't match the numbers. What do I do?” If your nonprofit receives donated goods, services, space, or time, this episode is for you. Meghan and I break down what in-kind donations are, why recording them matters, and how getting this right can completely change how funders see you. What You'll Learn: What counts as an in-kind donation and how to assign it a value How to record donated office space, employee time, and services on your books Why your financials need to tell the same story as your narrative How in-kind contributions can strengthen your grant proposals Why nonprofit bookkeeping is specialized and when to bring in the experts The one thing you should never do when valuing a donor's gift Bottom line: Your numbers tell a story whether you want them to or not. Make sure yours reflects the real work your nonprofit is doing. Resources from this Episode Learn about the value of volunteer time at Independent Sector: Quickbooks for Nonprofits Facebook Group from Megan Genest Tarnow: Previous Episode: Can Business Interruption Insurance Help Nonprofits Who Closed During ICE Raids? With Cody Wiswasser: Episode Transcript: Connect with Us Jess Birken: Meghan Heitkamp: Listen & Engage Listen on | | | Rate & Review on : Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: Stay Connected Sign up for the Birken Law Email list: Follow us on , , /episode/index/show/charitytherapy/id/40702645

160: Indiana vs Minnesota Throwdown | Can Business Interruption Insurance Help Nonprofits Who Closed During ICE Raids? With Cody Wiswasser 03/19/2026

160: Indiana vs Minnesota Throwdown | Can Business Interruption Insurance Help Nonprofits Who Closed During ICE Raids? With Cody Wiswasser 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 covered? Cody breaks down how business interruption coverage works, what it actually takes to file a claim, and why the fine print in your policy matters. What You'll Learn: What business interruption insurance is and whether your nonprofit qualifies The difference between standard and standalone coverage When a closure actually triggers a claim and when it doesn't How your nonprofit's specific mission affects your coverage options Why you need to understand your coverage BEFORE filing a claim Bottom line: Insurance isn’t a magic bullet, but it DOES matter for nonprofits. For nonprofits that qualify, business interruption coverage could be important for them. Resources from this Episode Learn more Community Partners Insurance Group at Contact Cody for your insurance needs at Which States Are In The Midwest? Get mad here: Previous Episode: Can You Use Your Retirement Funds to "Invest" In A Nonprofit? With Jeff Beck: Episode Transcript: Connect with Us Jess Birken: Cody Wiswasser – reach out at: Listen & Engage Listen on | | | Rate & Review on : Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: Stay Connected Sign up for the Birken Law Email list: Follow us on , , /episode/index/show/charitytherapy/id/40529880

159: Reporter on the Street | Can You Use Retirement Funds to "Invest" In A Nonprofit? With Jeff Beck 03/05/2026

159: Reporter on the Street | Can You Use Retirement Funds to "Invest" In A Nonprofit? With Jeff Beck 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 accounts, and what the IRS actually allows when it comes to retirement funds and charitable giving. Spoiler alert: nonprofits DO NOT have shareholders so you can’t “invest” in them and get a return! There are some serious red flags here, both on the legal side AND in this interpersonal relationship. What You'll Learn: Why you can't really "invest" in a nonprofit How giving to a nonprofit can benefit an individual’s tax position What a self-directed IRA is and what you get to do with it One legitimate way to donate your IRA funds to a nonprofit tax-free Why getting “returns” on your contribution can put a nonprofit’s tax-exemption at risk How you can financially hurt yourself when you’re starting a new organization Bottom line: Using your (or your significant other’s) retirement fund to set up your new business is probably NOT a good idea. Protect yourself, protect your partner, and please, let that IRA grow. Resources from this Episode Learn more about Jeff Beck at Coe Financial Group: Previous Episode: How Nonprofits Can Find and Hire a Good Lawyer Episode Transcript: Connect with Us Jess Birken: Jeff Beck – reach out at Listen & Engage Listen on | | | Rate & Review on : Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: Stay Connected Sign up for the Birken Law Email list: Follow us on , , /episode/index/show/charitytherapy/id/40317055

158: Is Your Ringer On? | How Nonprofits Can Find and Hire a Good Lawyer 02/19/2026

158: Is Your Ringer On? | How Nonprofits Can Find and Hire a Good Lawyer 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 anything else I’m supposed to do to make sure we did a fair search?” We dig into why hiring a lawyer is not the same as hiring other vendors and why an RFP is often the wrong tool for the job. We talk about common misconceptions nonprofits have about fairness, pricing, and process, and why trying to copy large institutions can backfire for smaller organizations. This conversation also pulls back the curtain on how lawyers actually work, what red flags to watch for, and how to avoid overcomplicating a decision that already feels overwhelming. What You'll Learn: How nonprofits typically find lawyers Why RFPs usually do not work for legal services What legal expertise actually looks like How pricing structures should be discussed Warning signs early in the relationship Why “cheapest” is not always best How to trust your gut while doing due diligence Bottom line: Hiring a lawyer does not require a perfect process. It requires clarity, trust, and a focus on finding someone who understands your nonprofit and can actually help you. Resources from this Episode Previous Episode: How Classy May Be Hurting Your Donor Relationships: Episode Transcript: Connect with Us Jess Birken: Meghan Heitkamp: Listen & Engage Listen on | | | Rate & Review on : Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: Stay Connected Sign up for the Birken Law Email list: Follow us on , , /episode/index/show/charitytherapy/id/40141195

157: Old Woman Shakes Fist at Sky | How Classy May Be Hurting Your Donor Relationships 02/05/2026

157: Old Woman Shakes Fist at Sky | How Classy May Be Hurting Your Donor Relationships 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 damage donor trust. We also talk about the growing trend of for profit software companies promising to “handle everything” for nonprofits while missing critical compliance details. If you rely on online donation platforms, this conversation will likely make you rethink what you are outsourcing and what still needs human attention. What You'll Learn: What SHOULD be in your donor acknowledgement letters How bad receipts can create donor frustration Where donation platforms and tech solutions for nonprofits can fall short How automation can quietly hurt your donor retention Bottom line: Donor relationships are built on trust and gratitude. When your systems create friction instead of appreciation, even unintentionally, it can cost you future support and credibility. Resources from this Episode Listen to our past episode with Eve Borenstein here: Read Eve Borenstein’s LinkedIn post about Classy here: Listen to our last episode with Ephraim about GoFundMe here: Generate a good Gift Acknowledgement Letter here: Previous Episode: Can Nonprofits Give Tax-Free Money to People?: Episode Transcript: Connect with Us Jess Birken: Meghan Heitkamp: Listen & Engage Listen on | | | Rate & Review on : Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: Stay Connected Sign up for the Birken Law Email list: Follow us on , , /episode/index/show/charitytherapy/id/39940645

156: Captain Depressio Reporting for Duty | Can Nonprofits Give Tax-Free Money to People? 01/22/2026

156: Captain Depressio Reporting for Duty | Can Nonprofits Give Tax-Free Money to People? 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 that when we give money to an individual, it messes up their taxes for the year. My bookkeeper suggested starting a nonprofit since nonprofit money isn't taxed. What kind of nonprofit would do that for us?” Quick answer – nonprofit tax exemption does NOT mean that everyone can ignore taxes for any money coming from a nonprofit. Sorry to be the bearer of bad news! In this episode, we unpack what tax exempt status really means (and what it absolutely does not mean). We talk about why starting a nonprofit does not magically make money tax free, how the IRS views giving cash to individuals, and where well-intentioned advice can lead to trouble for nonprofits AND their constituents. What You'll Learn: What tax deductible actually means for donors Why nonprofits cannot fundraise for specific individuals How giving money to people is treated for tax purposes Why starting a nonprofit doesn’t prevent you from all taxes What private benefit and step transactions are Why sometimes the best answer is simply to pay the tax Bottom line: Nonprofits aren’t a magic bullet to absolve you of all tax complications. Usually, starting a nonprofit doesn’t make your charitable activities easier – in fact, sometimes it’s best just to continue on with the good deeds you already do. Resources from this Episode Previous Episode: What to do when a donor gifts harms more than helps: Episode Transcript: Connect with Us Jess Birken: Meghan Heitkamp: Listen & Engage Listen on | | | Rate & Review on : Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: Stay Connected Sign up for the Birken Law Email list: Follow us on , , /episode/index/show/charitytherapy/id/39817075

155: Baby Don’t Hurt Me | What To Do When a Donor Gift Harms More Than Helps 01/08/2026

155: Baby Don’t Hurt Me | What To Do When a Donor Gift Harms More Than Helps 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 like that, but it just seems really silly. Our payment processor takes $0.30 out per transaction plus a merchant fee, so we're getting next to nothing on these donations. What do I do?” This tiny daily gift opens the door to a much bigger conversation about gift acceptance policies and the hidden costs of donations. Meghan and I talk through the drawbacks, the admin time, the donor relationship dynamics, and the surprising ways well-intentioned gifts can actually drain your resources. We also break down how to set minimums, how to talk to donors with compassion, and how to avoid getting stuck with gifts that cost more than they give back. What You'll Learn: Why every nonprofit needs a How to know when a gift creates more harm than helps The hidden administrative costs behind every single donation Ways to set smart donation minimums How to redirect donors without damaging the relationship Why saying no is actually part of stewardship How to prepare for unusual gifts before they show up Bottom line: Not every gift is a positive thing for a nonprofit. Sometimes you need to say no and guiding donors toward giving that truly supports your mission. Resources from this Episode Generate a Gift Acceptance Policy here: For the others who aren't Gen-Xers, Night at the Roxbury: Previous Episode: What is a Nonprofit Audit with Hannah Hugen: Episode Transcript: Connect with Us Jess Birken: Meghan Heitkamp: Listen & Engage Listen on | | | Rate & Review on : Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: Stay Connected Sign up for the Birken Law Email list: Follow us on , , /episode/index/show/charitytherapy/id/39651300

154: It's Gravy, Baby! | What is a Nonprofit Audit? with Hannah Hugen 12/24/2025

154: It's Gravy, Baby! | What is a Nonprofit Audit? with Hannah Hugen 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 prepare for growth without panicking. We also talk through the “scary myths” that float around new organizations and the real steps you can take now to avoid future chaos. If you’ve ever wondered what auditors look for, how to document properly, or what GAAP even means, this conversation breaks it down in plain English. What You'll Learn: What a nonprofit audit actually is When the IRS might look at your organization and why it’s not as dramatic as rumors imply How to show good-faith financial projections from your 1023-EZ Why documentation habits will save your future self The difference between cash and accrual accounting Practical steps to get audit-ready even if you’re small Bottom line: You don’t need to fear audits — you just need systems, clarity, and good habits. Your nonprofit deserves room to grow, and the right preparation makes that growth possible without being overwhelmed. Resources from this Episode Understanding Cash vs. Accrual Accounting: Internal Controls 101: Connect with Hannah on LinkedIn: Learn about Abdo: Previous Episode: How to Fix the Culture of Overwork at Your Nonprofit with Rachel Platt Episode Transcript: Connect with Us Jess Birken: Listen & Engage Listen on | | | Rate & Review on : Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: Stay Connected Sign up for the Birken Law Email list: Follow us on , , /episode/index/show/charitytherapy/id/39469120

153: It's a Triple Whammy | How to Fix the Culture of Overwork at Your Nonprofit with Rachel Platt 12/11/2025

153: It's a Triple Whammy | How to Fix the Culture of Overwork at Your Nonprofit with Rachel Platt 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 team is drowning under an unspoken expectation to always be on. How do we fix it?? In this conversation, Rachel and I dig into what overwork actually signals inside a nonprofit, why compliance and culture go hand in hand, and how leaders can unintentionally create burnout without ever meaning to. We also talk about the uncomfortable truth that many nonprofits have normalized unhealthy habits in the name of “the mission,” and why that approach backfires every time. We share practical ways to reset expectations, open the right conversations, and rebuild trust without blame. You might hear some things that feel familiar, because almost everyone in the sector has lived some version of this. What You'll Learn: The first steps to take when your team is chronically overworking How leadership habits shape culture more than policies Why “mission passion” cannot replace fair compensation or boundaries What you can and cannot ask hourly staff to do Simple tools that help reset norms around urgency and availability How to start culture change when you’re the new person on the team Why clarity, consistency, and modeling healthy behavior matter Bottom line: Your people are how your mission gets done. If they are burning out, you are losing capacity, trust, and impact. A healthier culture is possible, but it starts with honest conversations and leadership modeling the behavior they want to see. Resources from this Episode Learn more about Platinum Consulting: Reach out to Rachel Platt here: Previous Episode: When an Entrepreneur has a "Really Good" Nonprofit Idea Episode Transcript: Connect with Us Jess Birken: Rachel Platt: Listen & Engage Listen on | | | Rate & Review on : Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: Stay Connected Sign up for the Birken Law Email list: Follow us on , , /episode/index/show/charitytherapy/id/39346025

152: That's Called Tax Fraud! | When an Entrepreneur has a "Really Good" Nonprofit Idea 11/27/2025

152: That's Called Tax Fraud! | When an Entrepreneur has a "Really Good" Nonprofit Idea 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 had me fired up. We get into why turning your business dream into a “nonprofit project” is usually a fast track to tax fraud, how to tell when an idea crosses the line, and what to do instead. From historic preservation loopholes to optics in small towns, we unpack all the ways good intentions can turn into bad legal problems. If you’ve ever thought about forming a nonprofit to fund your own idea — listen to this first. What You'll Learn: Why the IRS cares about your “exempt purpose” more than your passion project How “good ideas” can become tax fraud with one wrong move What happens when your nonprofit owns your business asset Why perception matters just as much as legality Smarter, legal alternatives like crowdfunding and business partnerships How to know when a project is charitable — and when it’s just creative entrepreneurship Bottom line: Not every good idea is a nonprofit idea. If your goal is to make money, serve customers, or grow your business, that’s awesome — it just means you need a for-profit model, not a charitable one. Learn more about IRS exempt purposes: Previous Episode: Can You Convert a Failing Business Into a Nonprofit? Episode Transcript: Connect with Us Jess Birken: Meghan Heitkamp: Listen & Engage Listen on | | | Rate & Review on : Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: Stay Connected Sign up for the Birken Law Email list: Follow us on , , /episode/index/show/charitytherapy/id/39172790

151: Give Mark Your Crap! | When a PEO is a Good Fit for Your HR Needs with Mark Bromberg 11/13/2025

151: Give Mark Your Crap! | When a PEO is a Good Fit for Your HR Needs with Mark Bromberg 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 alternatives. When does it make sense to have a PEO instead of a CEO or in-house HR support?” This is one of those big-picture nonprofit management questions that hits close to home for a lot of leaders. In this episode, Mark and I unpack what a PEO actually is (spoiler: not just payroll!), what a true co-employment model looks like, and why choosing the right PEO is more than a price comparison — it’s a relationship. We also talk about how post-pandemic remote work complicates HR, why private equity moving into the PEO space should give nonprofits pause, and what “due diligence” really means before signing a PEO contract. What You'll Learn: What a PEO is — and what it isn’t When outsourcing HR actually helps your nonprofit How remote teams across multiple states complicate compliance Why private equity’s growing interest in PEOs matters What to ask before choosing a PEO (hint: “Who owns you?” is fair game) Why HR pros and PEOs can actually be a dream team How to make sure your PEO relationship is an ethical, cultural fit Bottom line: Nonprofits don’t exist to manage payroll, benefits, or compliance — you exist to change the world. The right PEO can help you do that, but only if you choose wisely and partner with someone who truly understands your mission. Resources from this Episode Learn about Insperity: Connect with Mark on LinkedIn: Previous Episode: GoFundMe Creates 1.4M Nonprofit Donation Pages Without Consent with Ephraim Gopin Episode Transcript: Connect with Us Jess Birken: Listen & Engage Listen on | | | Rate & Review on : Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: Stay Connected Sign up for the Birken Law Email list: Follow us on , , /episode/index/show/charitytherapy/id/39011655

150: All Press is Good Press? | GoFundMe Creates 1.4M Nonprofit Donation Pages Without Consent with Ephraim Gopin 10/30/2025

150: All Press is Good Press? | GoFundMe Creates 1.4M Nonprofit Donation Pages Without Consent with Ephraim Gopin 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, my inbox blew up. In this episode, Ephraim and I dig into what this means for your organization — from donor confusion to legal implications — and why this so-called “help” might do more harm than good. We cover everything from the basics of what a good donation page should look like, to why this move could affect your nonprofit’s SEO, compliance status, and even your donor relationships. What You'll Learn: What a solid, conversion-ready donation page really needs Why GoFundMe’s “auto-created” nonprofit pages are a huge problem How this affects your branding, donor data, and trust Why accepting those donations could mess with your state fundraising compliance Whether you should claim your page, delete it, or ignore it entirely How big platforms exploit “helping nonprofits” to make a profit And what to do right now if your org was affected Bottom line: Just because something is legal doesn’t mean it’s ethical. Nonprofits deserve respect — not to be treated like SEO bait. Whether you’re claiming or deleting your GoFundMe page, make sure the donations that come in are on your terms. Resources from this Episode Read GoFundMe’s statement about the nonprofit pages here: ? Connect with Ephraim Gopin: Listen to our episode with Ephraim about Giving Tuesday: Previous Episode: How Many Times Should a Nonprofit Board of Directors Meet? Episode Transcript: Connect with Us Jess Birken: Listen & Engage Listen on | | | Rate & Review on : Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: Stay Connected Sign up for the Birken Law Email list: Follow us on , , /episode/index/show/charitytherapy/id/38831230

149: Um, Actually... | How Many Times Should a Nonprofit Board of Directors Meet? 10/16/2025

149: Um, Actually... | How Many Times Should a Nonprofit Board of Directors Meet? 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 actually require, what fiduciary duties board members are neglecting when they don’t meet, and how to raise the issue without making enemies. We also unpack what counts as a real “meeting,” why email updates don’t cut it, and what to do if you’re stuck on a board that’s asleep at the wheel. What You'll Learn: The bare minimum number of meetings a board should have each year Why your bylaws matter more than you think What fiduciary duties mean — and how ignoring them puts you at risk Why a one-way email is not a valid board meeting How to raise governance concerns without burning bridges When (and how) to walk away from a dysfunctional board Bottom line: If your board isn’t meeting, it’s not leading. You can’t fulfill your fiduciary duties by inbox — and sometimes, the bravest move is to speak up or step out. Resources from this Episode Learn about fiduciary duties here: Previous Episode: When Nonprofits Should (Or Shouldn't!) Use PEOs for Their HR with Jess Holst: Episode Transcript: Connect with Us Jess Birken: Meghan Heitkamp: Listen & Engage Listen on | | | Rate & Review on : Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: Stay Connected Sign up for the Birken Law Email list: Follow us on , , /episode/index/show/charitytherapy/id/38596920

148: Type A Personalities Unite! | When Nonprofits Should (Or Shouldn't!) Use PEOs for Their HR with Jess Holst 10/02/2025

148: Type A Personalities Unite! | When Nonprofits Should (Or Shouldn't!) Use PEOs for Their HR with Jess Holst 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 the reality is more complicated. Jess Holst and I unpack the promises versus the pitfalls: from hidden compliance traps, to the limits of what PEOs actually cover, to the unexpected costs that nonprofits often don’t see coming. We also explore alternatives like fractional HR support and how to make smarter choices about employee benefits. What You'll Learn: What a PEO actually does — and what it doesn’t The real reason many nonprofits consider a PEO (hint: health insurance) Why compliance gaps and hidden costs can make PEOs risky How pairing a PEO with fractional HR could be a smarter move Why shopping with a benefits broker might save you more than a PEO How to know when your nonprofit is ready for outside HR help Bottom line: A PEO isn’t a magic HR fix. For some nonprofits, it might be a tool. For many, it’s a costly distraction. What matters most is building a strong HR foundation — whether that’s with fractional HR support, a trusted benefits broker, or a thoughtful plan for growth. Resources from this Episode Learn more Jess and Aligned HRC: Previous Episode: Are Nonprofit DEI Initiatives Illegal? with Megan: Episode Transcript: Connect with Us Jess Birken: Listen & Engage Listen on | | | Rate & Review on : Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: Stay Connected Sign up for the Birken Law Email list: Follow us on , , /episode/index/show/charitytherapy/id/38398325

147: Keep Doing You, Boo | Are Nonprofit DEI Initiatives Illegal? With Guest Megan Fuciarelli 09/18/2025

147: Keep Doing You, Boo | Are Nonprofit DEI Initiatives Illegal? With Guest Megan Fuciarelli 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 safely?” New EEOC guidance has nonprofits questioning whether DEI work — especially ERGs and affinity groups — puts them at legal risk. Megan and I break down what the rules really say, what’s changing, and how nonprofits can protect themselves without abandoning their values. We also dig into the difference between ERGs and affinity groups, what’s safe, what’s risky, and why “don’t panic” should be your new mantra. What You'll Learn: What the new EEOC guidance actually says about workplace DEI initiatives The key legal differences between ERGs and affinity groups How to structure ERGs to stay compliant while fostering inclusion Why shutting everything down out of fear might not be the right move How executive orders, memos, and guidance impact nonprofit policies Why reviewing your internal policies and documents is critical right now How to keep advancing DEI goals while reducing legal risks Bottom line: You don’t have to throw out your DEI work just because the rules are shifting. With clarity, intention, and the right structures, your nonprofit can keep doing the work that aligns with your values — and stay compliant. Resources from this Episode Learn more about Megan and US2 Consulting: Read the EEOC guidelines: and Previous Episode: Why Record Retention & Data Management Systems Matter for Nonprofits: Episode Transcript: Connect with Us Jess Birken: Megan Fuciarelli: Listen & Engage Listen on | | | Rate & Review on : Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: Stay Connected Sign up for the Birken Law Email list: Follow us on , , /episode/index/show/charitytherapy/id/38255295

146: Groaning & Moaning | Why Record Retention & Data Management Systems Matter for Nonprofits 09/04/2025

146: Groaning & Moaning | Why Record Retention & Data Management Systems Matter for Nonprofits 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 data, or internal records, what you hold onto could be putting you at risk. From lawsuits to government inquiries, the wrong data strategy can leave you vulnerable. Meghan and I dive into why your nonprofit needs a data retention policy, what you should keep, what you should delete, and how to plan for changing political climates without panicking. What You'll Learn: Why keeping everything forever could actually make your organization less safe The seven-year rule of thumb for retaining records (and when to go shorter or longer) How to protect sensitive participant data in politically charged mission areas What to do before you purge anything — and the legal traps to avoid How to set up a “threat-level” data plan when government scrutiny ramps up Why email hoarding could come back to bite you and how to clean it up smartly Bottom line: Your data is both an asset and a liability. A clear data retention policy protects your nonprofit, your people, and your mission — and the best time to start is now. Resources from this Episode Listen to Episode 89 to learn about conflicts of interest: Get a data retention policy for nonprofits here: Use our data retention policy app here: Previous Episode: Breaking Down the IRS Changes for 501(c)(3) Status for Churches: Episode Transcript: Connect with Us Jess Birken: Meghan Heitkamp: Listen & Engage Listen on | | | Rate & Review on : Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: Stay Connected Sign up for the Birken Law Email list: Follow us on , , /episode/index/show/charitytherapy/id/38076850

145: Astronauts vs. Scuba Divers | Can You Convert a Failing Business Into a Nonprofit? 08/21/2025

145: Astronauts vs. Scuba Divers | Can You Convert a Failing Business Into a Nonprofit? 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 isn’t working, and people assume nonprofit status will solve everything. I mean, it’s right in the name – you don’t have to make a profit, right?! Meghan and I walk through why this logic doesn’t hold up, the realities of converting to nonprofit status (hint: you can’t), and what it really takes to start and sustain a nonprofit. If you’re dreaming about skipping taxes and raking in grants, this episode will help you get real about what actually works. What You'll Learn: Why you can’t convert a for-profit business into a nonprofit What nonprofit status actually means and why it’s not a business model Why fundraising isn’t a magic solution How conflicts of interest complicate nonprofit governance What to do before starting a nonprofit if you're serious about it Why starting a nonprofit requires a plan, not just a tax filing What to think about if your org isn’t financially viable right now Bottom line: Nonprofit status isn’t a quick fix. If your current business model isn’t working, you need to solve that problem first — not just switch IRS categories and hope for the best. Resources from this Episode • Listen to Episode 89 to learn about conflicts of interest: • Check out my friend Steve Boland's podcast at Next In Nonprofits: • Previous Episode: Breaking Down the IRS Changes for 501(c)(3) Status for Churches: • Episode Transcript: Connect with Us • Jess Birken: • Meghan Heitkamp: Listen & Engage • Listen on | | | • Rate & Review on : Click "Ratings and Reviews" then "Write a Review" • Send us your nonprofit questions: Stay Connected • Sign up for the Birken Law Email list: • Follow us on , , /episode/index/show/charitytherapy/id/37706055

144: Pretending It's 1995 | Breaking Down the IRS Changes for 501(c)(3) Status for Churches 08/07/2025

144: Pretending It's 1995 | Breaking Down the IRS Changes for 501(c)(3) Status for Churches Have you heard? The IRS just gave churches the green light to endorse political candidates. It’s Jess Birken here, and I’m back with my co-host Meghan to dig into a recent IRS policy change that could shake up the nonprofit and political landscape. Real Listener Question: Not a listener question this time — Meghan brought the heat herself: “Did the IRS really just say churches can endorse political candidates from the pulpit? What does that mean for everyone else?” This episode covers some breaking nonprofit news (well, as breaking as it gets around here). The IRS just shifted how it interprets the Johnson Amendment — and the result is that churches can now legally endorse candidates if it's “in connection with religious services.” That’s a big deal, not just for religious orgs, but for how money moves in campaigns and the broader nonprofit world. Meghan and I unpack what this ruling really means, how it might impact campaign finance, and why it feels like the rules suddenly don’t apply equally anymore. What You'll Learn: What the Johnson Amendment is and how it used to work How a recent court filing changed enforcement for churches Why this doesn’t apply to other nonprofits How this opens the door to new forms of dark money in political campaigns Why this matters even if your nonprofit isn’t religious What the potential downstream effects might be in campaign finance Why transparency is the real issue underneath it all Bottom line: This isn’t just about churches. It’s about the integrity of the nonprofit sector and the role transparency plays in public trust. If you care about clean campaigns and nonprofit accountability, you should be paying attention. Resources from this Episode • Learn more about the IRS changes to the Johnson Amendment: • Hear our convo about the new IRS commissioner in episode 139: • Previous Episode: What Happens If You Don't Do the Nonprofit Filings?: • Episode Transcript: Connect with Us • Jess Birken: • Meghan Heitkamp: Listen & Engage • Listen on | | | • Rate & Review on : Click "Ratings and Reviews" then "Write a Review" • Send us your nonprofit questions: Stay Connected • Sign up for the Birken Law Email list: • Follow us on , , /episode/index/show/charitytherapy/id/37705980

143: Anonymized Juicy Gossip | What Happens If You Don't Do the Nonprofit Filings? 07/24/2025

143: Anonymized Juicy Gossip | What Happens If You Don't Do the Nonprofit Filings? What would you do if you inherited a nonprofit… with 20 years of missing paperwork? It’s Jess Birken here, and I’m back with my co-host Meghan to dig into one of the messiest listener questions yet. A nonprofit has been operating off the radar for decades, and it's time to figure out what happens next. Real Listener Question: "I just took on the treasurer role for a family nonprofit, but nothing’s been filed since 2005. The bank account is still under the name of a deceased board member. I’m wondering if I should just start over with a new nonprofit. Is that even possible?" This kind of thing happens more often than you’d expect. A well-meaning person takes on a board role and discovers the organization hasn't filed anything in decades. In this episode, Meghan and I unpack what to do when you find yourself in a nonprofit compliance nightmare. We cover how to figure out what kind of legal entity you’re actually dealing with, how to protect yourself, and how to decide whether to clean up the mess or start fresh. If you're the one caught holding the bag for a nonprofit with a messy past, this one's for you. What You'll Learn: Why nonprofit compliance is more complicated than for-profit businesses How to tell if your organization is really a 501(c)(3) What happens when a nonprofit operates without filing for years When it makes more sense to start a new organization than try to fix the old one Why board training is essential, even for small nonprofits What every board member should ask before agreeing to join How to stop stressing about the past and start moving forward Bottom line: If you inherit a messy nonprofit past, you are not alone. You can’t fix everything that came before you, but you can take charge today and make sure the future is solid. Resources from this Episode Nonprofit Health Check Up Tool: What Does It Mean To Be A Nonprofit Board Member? Article: Previous Episode: What Happens When Your Nonprofit IRS Status Is Revoked: Episode Transcript: Connect with Us Jess Birken: Meghan Heitkamp: Listen & Engage Listen on | | | Rate & Review on : Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: Stay Connected Sign up for the Birken Law Email list: Follow us on , , /episode/index/show/charitytherapy/id/37403530

142: Someone Get Me a Flux Capacitor! | What Happens When Your Nonprofit IRS Status is Revoked 07/10/2025

142: Someone Get Me a Flux Capacitor! | What Happens When Your Nonprofit IRS Status is Revoked 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. Resources from this Episode IRS Auto-Revocation Information: Form 990 Filing Requirements: Previous Episode: Can Trump Revoke Harvard’s Tax Status? - Episode Transcript: Connect with Us Jess Birken: Meghan Heitkamp: Listen & Engage Listen on | | | Rate & Review on : Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: Stay Connected Sign up for the Birken Law Email list: Follow us on , , Share this episode with fellow board members who need this info! /episode/index/show/charitytherapy/id/37140290

141: Justice for the 8 Cents! | How to Communicate Nonprofit “Overhead” Expenses 06/26/2025

141: Justice for the 8 Cents! | How to Communicate Nonprofit “Overhead” Expenses Nonprofits - how do YOU communicate about the dreaded “overhead” expenses? You know that pie chart everyone uses to show how much money goes directly to programs? Yeah, I want to toss it out the window. We'll talk about why those “eight cents” on the dollar that cover essential administrative expenses are not wasted but actually crucial for keeping your nonprofit running smoothly. In this episode, we’re tackling a nonprofit pro’s question about updating an employee handbook. Should you hire a pro bono lawyer who DOESN’T do employment law or invest in an HR expert? Spoiler alert: Your uncle Larry, the PI lawyer, might not be the best fit here. It's all about making smart investments in your nonprofit's operations and HR to avoid headaches down the line. Trust me, you'll thank yourself later when you don't end up in a legal pickle. So, grab your headphones and join us for a lively chat about transforming how nonprofits communicate their spending to donors. We promise some laughs, a few rants, and a whole lot of practical advice. And remember, it's okay to spend money on things that keep your nonprofit running well! Let's rethink the way we tell our financial stories and embrace the true costs of running an amazing organization. In this episode, you will hear: Why you need to delete that outdated nonprofit overhead pie chart Whether pro bono is the right way to go with your employment law needs Some of our recommendations for tools to keep up with all the changing HR rules The real relationship between the back-office and your direct mission programming How you can REALLY communicate success to your donors What your fiduciary duties really have to do with all our worries about “overhead” Resources from this Episode Propel Article - A Graphic Re-Visioning of Nonprofit Overhead: The Five Whys: Sign up for the Birken Law Email list: Facebook page: 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 . 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 Let them know we sent you. /episode/index/show/charitytherapy/id/37137855

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