I absolutely love this man because I started my own nonprofit and I tell you listening to the videos encouraged me because I began to understand the things I needed to do and that were being done for me.
Hi, here’s my Question: you continue to mention how powerful and how amazing it is to invest $ in nonprofits. How is that powerful when you’re not paying taxes, yet the money no longer belongs to you? But more of a legacy. This doesn’t increase your value. You cant have equity in a nonprofit. You’re handing that money away, tax free, but it’s handed off. Not to mention the new tax laws have changed on charitable donations. Thanks for the info btw.
Good day You are correct. The main purpose behind non-profits is to devote its resources to a certain charitable cause, while, at the same time, pave the road for potential tax benefits for persons donating to the cause or providing essential services to the cause. Non-profit is not designed to directly boost your personal net worth or to help you to increase the value of a personal portfolio. However, a smart tax plan, including in some cases planning involving a charitable cause, may have an effect on your personal net worth or value of other assets. If you simply looking for better access to profits or cash, then non-profit is usually not a tool to assist you in that. But it can help you to increase the value by reducing taxable burden in some cases. Thank you.
@@TobyMathis Hi Toby, I think you're brilliant as well and thanks for helping people understand this. Am I correct in thinking Melissa may also be overlooking the fact that countless Nonprofits often pay their employees who run the company very reasonable and often quite comfortable salaries, which would then be deducted from the nonprofit's actual income, or gross gains? At least that's been my understanding, but please correct me if I'm wrong. And if I'm correct in thinking this, my next question is: Can a Board Member or "Trust" member as head of the non-profit actually be paid a managerial salary? IOW, are board members allowed to be paid for their services, or is there some statute mandating board members be volunteers? Knowing this would certainly be helpful to many making a decision on whether or not they feel confident they can get others involved in the growth and vibrancy of their nonprofit corporation. Thanks again for all you do, and I'm certain choosing you are another professional as qualified as you will be a no-brainer for many who are thinking about doing this and wanting to be sure it's done correctly.
Doesn't an LLC provide protection for individual board members that a Corp doesn't? It was my understanding that members of a Limited Liability Corporation couldn't be sued beyond the holdings of the organization &, therefore, "protected" the personal assets of its members (i.e. personal residence, personal savings & individual retirement accounts) from being attacked through litigation. Whereas, if sued, a successful litigant could petition for those personal assets to "attach" in a punitive settlement if dealing with just a Corporate organisation. An well-known example of this would be the assets of Enron executives that were seized to satisfy a portion of the judgements levied vs Boy Scouts of America going bankrupt without the executives being held personally liable. I don't know that BSoA was an LLC, but...you get my drift.
An LLC would not necessarily have a board, as a corporation would, unless it specifically chose to do that. In states that allow it punitive damages are usually reserved for cases where the defendant's conduct is beyond merely negligent or intentional; the conduct must be reckless, malicious, fraudulent, wanton, outrageous, or otherwise more deserving of punishment in the eyes of the judge or jury. It is not determined or controlled by entity structure.
@@TobyMathis Since you said states that allow punitive action. What states don't allow punitive actions. What exactly does this mean and how does it benefit the persons.
Hi L. Obrien, I know this is a couple year old question you had, but still wondered if the following has been considered: 1. Since you are comparing a For-profit corporation (Enron), to a hypothetic non-profit- such as being discussed in this video, would it be fair to say there may be different rules for liability pertaining to each type of organization's board members? 2. If you hypothetically reversed the situation, would the board members for Boy Scouts of America (assuming it's non-profit) be held liable in a civil suit filed against them by Enron for the same types of action, or non-action? I haven't looked into that specific case, but right off the bat, it appears there may be comparing some apples to oranges. And also wondering if you've had any more thoughts or experience with this? Interesting question.
I absolutely love this man because I started my own nonprofit and I tell you listening to the videos encouraged me because I began to understand the things I needed to do and that were being done for me.
So how is it going now? Was there anything major he didn't cover that surprised you?
"LLC is a creature of state" -T.M.
Hi, here’s my Question: you continue to mention how powerful and how amazing it is to invest $ in nonprofits. How is that powerful when you’re not paying taxes, yet the money no longer belongs to you? But more of a legacy. This doesn’t increase your value. You cant have equity in a nonprofit. You’re handing that money away, tax free, but it’s handed off. Not to mention the new tax laws have changed on charitable donations. Thanks for the info btw.
Good day
You are correct. The main purpose behind non-profits is to devote its resources to a certain charitable cause, while, at the same time, pave the road for potential tax benefits for persons donating to the cause or providing essential services to the cause. Non-profit is not designed to directly boost your personal net worth or to help you to increase the value of a personal portfolio. However, a smart tax plan, including in some cases planning involving a charitable cause, may have an effect on your personal net worth or value of other assets. If you simply looking for better access to profits or cash, then non-profit is usually not a tool to assist you in that. But it can help you to increase the value by reducing taxable burden in some cases.
Thank you.
Anderson Business Advisors ok. thank you
@@TobyMathis Hi Toby, I think you're brilliant as well and thanks for helping people understand this. Am I correct in thinking Melissa may also be overlooking the fact that countless Nonprofits often pay their employees who run the company very reasonable and often quite comfortable salaries, which would then be deducted from the nonprofit's actual income, or gross gains? At least that's been my understanding, but please correct me if I'm wrong. And if I'm correct in thinking this, my next question is: Can a Board Member or "Trust" member as head of the non-profit actually be paid a managerial salary? IOW, are board members allowed to be paid for their services, or is there some statute mandating board members be volunteers?
Knowing this would certainly be helpful to many making a decision on whether or not they feel confident they can get others involved in the growth and vibrancy of their nonprofit corporation.
Thanks again for all you do, and I'm certain choosing you are another professional as qualified as you will be a no-brainer for many who are thinking about doing this and wanting to be sure it's done correctly.
Hey do all non profit s have to make there tax records public?
No. Churches do not even have to file.
I've had an EIN number when I was married and we divorced and I gave him the business now he's passed, do I file for a new EIN number?
Good video. Had a professor that was Milton Hershey orphan, great leader. These entities can do great things over time.
Want to register a nonprofit organisation. Thank you very much for your advice.
💕this Brilliance
Amazing video! Thanks!
@Matthew Guzman glad you found it helpful. Thank you for your comment.
Doesn't an LLC provide protection for individual board members that a Corp doesn't?
It was my understanding that members of a Limited Liability Corporation couldn't be sued beyond the holdings of the organization &, therefore, "protected" the personal assets of its members (i.e. personal residence, personal savings & individual retirement accounts) from being attacked through litigation. Whereas, if sued, a successful litigant could petition for those personal assets to "attach" in a punitive settlement if dealing with just a Corporate organisation. An well-known example of this would be the assets of Enron executives that were seized to satisfy a portion of the judgements levied vs Boy Scouts of America going bankrupt without the executives being held personally liable. I don't know that BSoA was an LLC, but...you get my drift.
An LLC would not necessarily have a board, as a corporation would, unless it specifically chose to do that. In states that allow it punitive damages are usually reserved for cases where the defendant's conduct is beyond merely negligent or intentional; the conduct must be reckless, malicious, fraudulent, wanton, outrageous, or otherwise more deserving of punishment in the eyes of the judge or jury. It is not determined or controlled by entity structure.
@@TobyMathis Since you said states that allow punitive action. What states don't allow punitive actions. What exactly does this mean and how does it benefit the persons.
Hi L. Obrien, I know this is a couple year old question you had, but still wondered if the following has been considered:
1. Since you are comparing a For-profit corporation (Enron), to a hypothetic non-profit- such as being discussed in this video, would it be fair to say there may be different rules for liability pertaining to each type of organization's board members?
2. If you hypothetically reversed the situation, would the board members for Boy Scouts of America (assuming it's non-profit) be held liable in a civil suit filed against them by Enron for the same types of action, or non-action?
I haven't looked into that specific case, but right off the bat, it appears there may be comparing some apples to oranges. And also wondering if you've had any more thoughts or experience with this?
Interesting question.