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A nonprofit went quiet. Everyone got busy, the work stopped, and somewhere along the way it got "dissolved." Now you're ready to bring it back. Is that even possible? Meghan and I tackle a layered listener question that delves into a really misunderstood issue in the nonprofit world. We also get into what really happens when a founder-led org goes dark, why so many nonprofits stall out in their first few years, and what it actually takes to bring one back from the dead. Real Listener Question: "I was an officer for a small nonprofit that the president unilaterally decided to dissolve about a year ago. The org had been on pause while the board was busy with life stuff, and the president just did the dissolution herself. I really want to get back to the work. How do I revive the corporation? And do we have a leg up on getting our 501(c)(3) status again since we've already done it once?" Meghan and I dig into what "dissolved" actually means, how a nonprofit might secretly still be alive, and the people side of reviving a mission that someone else already laid to rest. What You'll Learn: Why so many new nonprofits stall out in their first few years The difference between truly dissolving and just abandoning a nonprofit How to check if your org still exists with the state and the IRS Why you don't lose tax exemption for missing a single 990 Why the IRS gives you no special leg up for having been approved before The messy interpersonal drama that can arise when you're dealing with passionate people Bottom line: Startup energy doesn't last forever, and pausing or closing a nonprofit doesn't make you a failure. But before you reanimate a dissolved org, check what's actually still alive, and tread carefully with the people who were there the first time around. Resources from this Episode Previous Episode: https://birkenlaw.com/charity-therapy-podcast/ct174-public-charity-private-foundation Episode Transcript: https://birkenlaw.com/wp-content/uploads/2026/10/CT175_Transcript.pdf Connect with Us Jess Birken: https://www.linkedin.com/in/jessbirken/ Meghan Heitkamp: https://www.linkedin.com/in/meghan-heitkamp-829254115/ Listen & Engage Listen on Apple Podcasts | Spotify | YouTube | Amazon Music Rate & Review on Apple Podcasts: Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: https://birkenlaw.com/podcast/#podcast-story   Stay Connected Sign up for the Birken Law Email list: https://birkenlaw.com/signup/   Follow us on Facebook, Instagram, Twitter

You got your 501(c)(3) letter, so you're all set... right? Not so fast. There's a second designation buried in that letter, and if it's not correct it could derail your grant applications, your tax filings, and your whole plan. Meghan and I break down one of the most misunderstood distinctions in the nonprofit world: public charity versus private foundation. Both are 501(c)(3)s, but the difference between them changes how you file, what grants you qualify for, and how you're allowed to operate. We tackle two listener questions from founders who accidentally ended up in the wrong bucket without even knowing it. Real Listener Question: "One founder gives a lot of money to the nonprofit they started because it makes financial sense, and now their CPA is warning that this could turn the org into a private foundation. What does that mean? Another founder did all the paperwork themselves, got their 501(c)(3) letter, and then had a grant application rejected because they're "not a public charity." They're confused. Doesn't the letter say 501(c)(3)?" Meghan and I dig into the public support test, why funding your own nonprofit can accidentally make you a private foundation, and how to check your real status before it comes back to bite you. What You'll Learn: What the 501(c)(3) status actually is and why it has subcategories The difference between a public charity and a private foundation What the public support test is and why you need a third of your money from public sources How to look up your real status using the IRS exempt organization search Why private foundations file a 990-PF, not a regular 990 Bottom line: It's not "public charity good, private foundation bad." It's about which one fits the work you're actually trying to do. Know your real status and don't let a DIY paperwork shortcut haunt you three years down the line. Resources from this Episode Previous Episode: https://birkenlaw.com/charity-therapy-podcast/ct173-money-when-nonprofit-closes Episode Transcript: https://birkenlaw.com/wp-content/uploads/2026/09/CT174_Transcript.pdf Connect with Us Jess Birken: https://www.linkedin.com/in/jessbirken/ Meghan Heitkamp: https://www.linkedin.com/in/meghan-heitkamp-829254115/ Listen & Engage Listen on Apple Podcasts | Spotify | YouTube | Amazon Music Rate & Review on Apple Podcasts: Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: https://birkenlaw.com/podcast/#podcast-story   Stay Connected Sign up for the Birken Law Email list: https://birkenlaw.com/signup/   Follow us on Facebook, Instagram, Twitter

When a nonprofit closes its doors, it opens up a bunch of questions. What happens to the mission? Are there other organizations or groups doing this work? And a big one – what do we do with everything that's left over?   No individual gets to keep the money or assets leftover when a nonprofit dissolves. So what happens now, and how do you honor everything your organization stood for? Meghan and I tackle a bittersweet listener question from an executive director who chose to close a nonprofit with dignity rather than run it into the ground. Now they're sitting on a substantial amount of leftover funds, ready to play Fairy Godmother. Real Listener Question: "Our nonprofit is dissolving, and I want to be a good steward of the leftover funds. I worked with an attorney to dissolve properly and now I'm ready to give away a substantial amount. How do I choose who to give the money to? Do I give a big gift to a few orgs or smaller amounts to many? What would you do?" Meghan and I dig into what the law actually requires when a nonprofit dissolves, why this ED already knows the answer, and why the paralysis they're feeling has a lot more to do with grief than with grant strategy. What You'll Learn: The legal requirements you need to follow in a nonprofit dissolution Why a bigger gift to fewer orgs makes a far greater impact What you actually need to check before giving Why over-vetting the successor organization is a common hurdle to dissolving nonprofits What makes that final gift ACTUALLY difficult (and it's not the reason you think) Bottom line: There is no perfect formula that will make the end of a nonprofit hurt less. Do your due diligence, give the best gift you can, and let yourself grieve. Resources from this Episode Previous Episode: https://birkenlaw.com/charity-therapy-podcast/ct172-board-basics-by-a-teenager Episode Transcript: https://birkenlaw.com/wp-content/uploads/2026/09/CT_Ep173_Transcript.pdf Connect with Us Jess Birken: https://www.linkedin.com/in/jessbirken/ Meghan Heitkamp: https://www.linkedin.com/in/meghan-heitkamp-829254115/ Listen & Engage Listen on Apple Podcasts | Spotify | YouTube | Amazon Music Rate & Review on Apple Podcasts: Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: https://birkenlaw.com/podcast/#podcast-story   Stay Connected Sign up for the Birken Law Email list: https://birkenlaw.com/signup/   Follow us on Facebook, Instagram, Twitter

What happens when you ask a 14 year-old to give advice to a bunch of board members who can't get along? Well, sometimes your local teenager might just give you the BEST take on the situation. I'm joined by a very special guest this episode: my kid, Max. We start with a crash course on what a nonprofit board is, why board members are volunteers, and what the typical officer titles really mean. Then Max puts on his guest expert hat and helps me untangle a board drama that's threatening to sink an entire organization. Real Listener Questions: Becoming a volunteer at my nonprofit requires a majority board vote, and becoming a full board member requires a unanimous vote. Now our president is trying to impose veto power so he can overturn our votes if he disagrees. Other board members and I think he's trying to become a dictator instead of a leader. How do I make him understand he doesn't own the nonprofit and doesn't get to call all the shots? Max and I dig into what's really going on here, why veto power isn't how healthy boards work, and why the answer to almost every board conflict comes back to one thing: communication. What You'll Learn: What a nonprofit board is and why members are unpaid volunteers Why volunteer status comes with legal liability protection What the president, treasurer, and secretary actually do How to handle board recruitment through policy instead of power plays Why community and togetherness are what keep an all-volunteer org alive Bottom line: You can't hammer your will through a board with veto power and expect the organization to survive. Communication, being heard, and a real sense of community are what keep a nonprofit standing. And sometimes a teenager can see that more clearly than anyone. Resources from this Episode Previous Episode: https://birkenlaw.com/charity-therapy-podcast/ct171-fundraising-myths-patrick-kirby Episode Transcript: https://birkenlaw.com/wp-content/uploads/2026/09/CT_Ep172_Transcript.pdf Connect with Us Jess Birken: https://www.linkedin.com/in/jessbirken/ Listen & Engage Listen on Apple Podcasts | Spotify | YouTube | Amazon Music Rate & Review on Apple Podcasts: Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: https://birkenlaw.com/podcast/#podcast-story   Stay Connected Sign up for the Birken Law Email list: https://birkenlaw.com/signup/   Follow us on Facebook, Instagram, Twitter

Fundraising doesn't have to be intimidating, jargon-filled, or a total drag. I'm joined by Patrick Kirby, the nonprofit and fundraising consultant behind Do Good Better Consulting and a self-described human exclamation mark. Patrick brings so much energy and joy to fundraising that it's genuinely contagious. We tackle three listener questions, bust some persistent fundraising myths, and Patrick goes on a rant that you will not want to miss. Real Listener Questions: What do you do when your software is getting in the way of your marketing? How do you keep the faith when what you're trying just isn't working? Patrick and I dig into what actually drives donations, why software is never the silver bullet, and why losing a program that made you almost no money might be the best thing that ever happened to your fundraising. What You'll Learn: Why "this is the way we've always done it" kills good ideas before they start How to be purposeful with your calls to action instead of always asking for money Why a CRM helps but won't magically fix your fundraising for you How to keep your motivation up when donor outreach feels like a grind Why a thank-you voicemail counts as a real, meaningful touchpoint How to make your fundraising about the donor and the community you serve Bottom line: You're doing more impact than you think. Let the old ways go, focus on great stories and real relationships, and remember that you're part of the solution to problems the government can't fix on its own. Resources from this Episode Check out Do Good Better Consulting: https://www.dogoodbetterconsulting.com Previous Episode: https://birkenlaw.com/charity-therapy-podcast/ct170-fire-your-board/ Episode Transcript: https://birkenlaw.com/wp-content/uploads/2026/08/CT_Ep171_Transcript.pdf Connect with Us Jess Birken: https://www.linkedin.com/in/jessbirken/ Patrick Kirby: https://www.linkedin.com/in/fundraisingdad/ Listen & Engage Listen on Apple Podcasts | Spotify | YouTube | Amazon Music Rate & Review on Apple Podcasts: Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: https://birkenlaw.com/podcast/#podcast-story   Stay Connected Sign up for the Birken Law Email list: https://birkenlaw.com/signup/   Follow us on Facebook, Instagram, Twitter

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: https://birkenlaw.com/charity-therapy-podcast/ct169-nonprofit-retirement-christopher-tipper/ Episode Transcript: https://birkenlaw.com/wp-content/uploads/2026/08/CT_Ep170_Transcript.pdf Connect with Us Jess Birken: https://www.linkedin.com/in/jessbirken/ Meghan Heitkamp: https://www.linkedin.com/in/meghan-heitkamp-829254115/ Listen & Engage Listen on Apple Podcasts | Spotify | YouTube | Amazon Music Rate & Review on Apple Podcasts: Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: https://birkenlaw.com/podcast/#podcast-story   Stay Connected Sign up for the Birken Law Email list: https://birkenlaw.com/signup/   Follow us on Facebook, Instagram, Twitter

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 Christopher Tipper of Hunter Benefits Consulting Group 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 https://hunterbenefits.com/ Watch Christopher's videos: https://www.youtube.com/@Hunter_Benefits Previous Episode: https://birkenlaw.com/charity-therapy-podcast/ct168-flat-org-structre-pablo-otaola Episode Transcript: https://birkenlaw.com/wp-content/uploads/2026/07/CT169_Transcript.pdf Connect with Us Jess Birken: https://www.linkedin.com/in/jessbirken/ Christopher Tipper: https://www.linkedin.com/in/christophertipper/ Listen & Engage Listen on Apple Podcasts | Spotify | YouTube | Amazon Music Rate & Review on Apple Podcasts: Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: https://birkenlaw.com/podcast/#podcast-story   Stay Connected Sign up for the Birken Law Email list: https://birkenlaw.com/signup/   Follow us on Facebook, Instagram, Twitter

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 Dr. Pablo Otaola, CEO of Thriving Culture LLC, 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: https://www.thrivingculturellc.com/ Previous Episode: https://birkenlaw.com/charity-therapy-podcast/ct167-directors-officers-insurance-cody-wiswasser/ Episode Transcript: https://birkenlaw.com/wp-content/uploads/2026/07/CT168_Transcript.pdf Connect with Us Jess Birken: https://www.linkedin.com/in/jessbirken/ Dr. Pablo Otaola: https://www.linkedin.com/in/pablootaola/ Listen & Engage Listen on Apple Podcasts | Spotify | YouTube | Amazon Music Rate & Review on Apple Podcasts: Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: https://birkenlaw.com/podcast/#podcast-story   Stay Connected Sign up for the Birken Law Email list: https://birkenlaw.com/signup/   Follow us on Facebook, Instagram, Twitter

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 Community Partners Insurance Group, 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 https://communitypartnersins.com Previous Episode: https://birkenlaw.com/charity-therapy-podcast/ct166-strategic-planning-perry-monastero/ Episode Transcript: https://birkenlaw.com/wp-content/uploads/2026/05/CT167_Transcript.pdf Connect with Us Jess Birken: https://www.linkedin.com/in/jessbirken/ Cody Wiswasser – reach out at: [email protected] Listen & Engage Listen on Apple Podcasts | Spotify | YouTube | Amazon Music Rate & Review on Apple Podcasts: Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: https://birkenlaw.com/podcast/#podcast-story   Stay Connected Sign up for the Birken Law Email list: https://birkenlaw.com/signup/   Follow us on Facebook, Instagram, Twitter

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 R. Perry Monastero, owner of RPM Consulting Group, 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: https://rpmcg.com BoardSource: https://boardsource.org National Council of Nonprofits: https://www.councilofnonprofits.org Standards for Excellence Institute: https://standardsforexcellence.org Episode Transcript: https://birkenlaw.com/wp-content/uploads/2026/06/CT166_Transcript.pdf Connect with Us Jess Birken: https://www.linkedin.com/in/jessbirken/ R. Perry Monastero: https://www.linkedin.com/in/perrymonastero/ Listen & Engage Listen on Apple Podcasts | Spotify | YouTube | Amazon Music Rate & Review on Apple Podcasts: Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: https://birkenlaw.com/podcast/#podcast-story   Stay Connected Sign up for the Birken Law Email list: https://birkenlaw.com/signup/   Follow us on Facebook, Instagram, Twitter

So you've submitted your IRS application and you're anxiously awaiting the letter in the mail with their response. But what if it just… never comes?? Meghan and I tackle a listener question from a new nonprofit that did everything right – they got their tax-exempt status (yay!) but still can't find the actual letter. What do you do? Real Listener Question: "My org got approved as a 501(c)(3) according to the IRS bulk list for my state. But I never actually received the determination letter and it's not on the website. Is this common? I know that many grants ask for the actual letter, so I'm not sure what to do." Meghan and I break down what a determination letter is, why it might not have arrived yet, and what to do if you need a replacement (for any reason). What You'll Learn: What a determination letter is and why it matters for your nonprofit Why your letter might not have arrived even though your status is real How to use the IRS Tax Exempt Organization Search and what it actually shows When to wait it out vs when to request a replacement letter How to request a replacement determination letter from the IRS for free Bottom line: The IRS moves SLOWLY sometimes. You can request a new determination letter anytime, but remember that every new request is another filing that will take time to complete. Take a deep breath and be ready to wait. Resources from this Episode IRS Tax Exempt Organization Search tool: https://apps.irs.gov/app/eos/ Request a replacement determination letter from the IRS: https://www.irs.gov/pub/irs-pdf/f4506b.pdf Learn about the leadership fiasco at the IRS: https://birkenlaw.com/charity-therapy-podcast/ct139 Episode Transcript: https://birkenlaw.com/wp-content/uploads/2026/04/CT165_Transcript.pdf Connect with Us Jess Birken: https://www.linkedin.com/in/jessbirken/ Meghan Heitkamp: https://www.linkedin.com/in/meghan-heitkamp-829254115/ Listen & Engage Listen on Apple Podcasts | Spotify | YouTube | Amazon Music Rate & Review on Apple Podcasts: Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: https://birkenlaw.com/podcast/#podcast-story   Stay Connected Sign up for the Birken Law Email list: https://birkenlaw.com/signup/   Follow us on Facebook, Instagram, Twitter

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 Debbie Rabishaw, founder of HR consulting firm Next Step Advisory, 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 www.nextstepadvisory.us Previous Episode: Can a Religious Nonprofit Apply for Status with the IRS 1023-EZ Short Form?: https://birkenlaw.com/charity-therapy-podcast/ct163-religious-nonprofit-1023/ Episode Transcript: https://birkenlaw.com/wp-content/uploads/2026/04/CT164_Transcript.pdf Connect with Us Jess Birken: https://www.linkedin.com/in/jessbirken/ Debbie Rabishaw: https://www.linkedin.com/in/debbierabishaw/ Listen & Engage Listen on Apple Podcasts | Spotify | YouTube | Amazon Music Rate & Review on Apple Podcasts: Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: https://birkenlaw.com/podcast/#podcast-story   Stay Connected Sign up for the Birken Law Email list: https://birkenlaw.com/signup/   Follow us on Facebook, Instagram, Twitter

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: https://www.irs.gov/pub/irs-pdf/i1023ez.pdf File using our Do-It-Yourself 1023-EZ Tool: https://birkenlaw.com/diy-1023-ez Watch the Righteous Gemstones: https://www.hbomax.com/shows/righteous-gemstones/c3bd0a34-c4ce-4ca5-bd6c-820df7340671 Previous Episode: Are Nonprofit Startup Costs Tax-Deductible Donations for the Founder? https://birkenlaw.com/charity-therapy-podcast/ct162-nonprofit-startup-costs Episode Transcript: https://birkenlaw.com/wp-content/uploads/2026/03/CT163_Transcript.pdf Connect with Us Jess Birken: https://www.linkedin.com/in/jessbirken/ Meghan Heitkamp: https://www.linkedin.com/in/meghan-heitkamp-829254115/ Listen & Engage Listen on Apple Podcasts | Spotify | YouTube | Amazon Music Rate & Review on Apple Podcasts: Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: https://birkenlaw.com/podcast/#podcast-story   Stay Connected Sign up for the Birken Law Email list: https://birkenlaw.com/signup/   Follow us on Facebook, Instagram, Twitter

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 it started. We earned our 501c3 status that September. Does that startup cash count as a tax-deductible donation even though it happened before our status was official?" Meghan and I break down the IRS backdating rule, the chicken-and-egg problem of nonprofit startup costs, and what founders need to know before they file their taxes. What You'll Learn: Why starting a nonprofit costs more than most founders expect The IRS backdating rule and how it protects early donors and founders What the 27-month window means for your tax-exempt status How founders can get reimbursed for the startup costs Why you can't take a deduction AND get reimbursed later Bottom line: Nonprofits are businesses, and businesses have startup costs. Know your options before you file, and don't double dip. Resources from this Episode Watch the C.H.U.D. trailer: https://youtu.be/iNq2yPGhv1w?si=-BIOh_iP-WCv_L0B Previous Episode: Why Recording In-Kind Donations Matters For Your Nonprofit: https://birkenlaw.com/charity-therapy-podcast/ct161-recording-inkind-donations Episode Transcript: https://birkenlaw.com/wp-content/uploads/2026/03/CT162_Transcript.pdf Connect with Us Jess Birken: https://www.linkedin.com/in/jessbirken/ Meghan Heitkamp: https://www.linkedin.com/in/meghan-heitkamp-829254115/ Listen & Engage Listen on Apple Podcasts | Spotify | YouTube | Amazon Music Rate & Review on Apple Podcasts: Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: https://birkenlaw.com/podcast/#podcast-story   Stay Connected Sign up for the Birken Law Email list: https://birkenlaw.com/signup/   Follow us on Facebook, Instagram, Twitter

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: https://independentsector.org/research/value-of-volunteer-time/ Quickbooks for Nonprofits Facebook Group from Megan Genest Tarnow: https://www.facebook.com/groups/QB4NPs Previous Episode: Can Business Interruption Insurance Help Nonprofits Who Closed During ICE Raids? With Cody Wiswasser: https://birkenlaw.com/charity-therapy-podcast/ct160-nonprofit-business-insurance Episode Transcript: https://birkenlaw.com/wp-content/uploads/2026/03/CT161_Transcript.pdf Connect with Us Jess Birken: https://www.linkedin.com/in/jessbirken/ Meghan Heitkamp: https://www.linkedin.com/in/meghan-heitkamp-829254115/ Listen & Engage Listen on Apple Podcasts | Spotify | YouTube | Amazon Music Rate & Review on Apple Podcasts: Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: https://birkenlaw.com/podcast/#podcast-story   Stay Connected Sign up for the Birken Law Email list: https://birkenlaw.com/signup/   Follow us on Facebook, Instagram, Twitter