501c Suite

Starting in 2027, individual donors who give to a qualifying scholarship-granting organization can receive up to $1,700 in annual tax credits, but only if the organization is properly registered, structured, and operating within a tightly defined set of rules.In this episode, Olivia Froedge is joined by Charitable Allies attorney Justin Fromke to break down exactly what those rules are : from the 90% scholarship spend rate and state opt-in requirements to student eligibility criteria, internal policy documents, and the disqualified person restrictions that catch a lot of organizations off guard. With state submission deadlines approaching and IRS proposed regulations already out, the window to get this right before the program launches is quickly approaching.Things You Will Learn:What a scholarship-granting organization is under the new law, which states have opted in, and what the registration process looks like at both the state and federal level.How the 90% spend rate requirement works, why many organizations are creating a separate SGO entity to meet it, and what the IRS safe harbor provides for newer organizations.What internal documents and policies an SGO needs to have in place before granting scholarships, and why getting those wrong creates both compliance and legal exposure.Tools & Frameworks Covered:The Three-Category Eligibility Framework: Organizes the SGO qualification requirements into organizational basics, operational structure, and student eligibility so leaders can evaluate their readiness at each level before moving to the next.The Scholarship Policy and Application System: The two internal documents every SGO needs to operate compliantly: a board-level scholarship policy governing how decisions are made, and a student application that captures the eligibility data the program requires.The Disqualified Person Check: A pre-grant review process that screens scholarship applicants against the organization’s directors, officers, and substantial contributors to prevent private benefit violations before they happen.#NonprofitLaw #501c3 #NonprofitGovernance #NonprofitLeadership #CharitableAllies✅ SUBSCRIBE so you never miss an episode:YouTube: https://www.youtube.com/@charitableallies/podcastsApple Podcast: https://podcasts.apple.com/us/podcast/501c-suite/id1854799490Spotify: https://open.spotify.com/show/18IVmECOQ1MMOOthGrSkRhWant more help with your nonprofit’s bylaws?Visit https://charitableallies.org/

The IRS has updated its rules for group exemptions, and if your nonprofit holds one, you have until January 22, 2027 to get compliant. That goes for denominations with local churches, national associations with chapters, and networks thinking about applying for the first time.In this episode of the 501c Suite podcast, Olivia Froedge talks with Robert Miller, Managing Attorney of Charitable Allies, about what changed, who it affects, and what to do before the deadline. They cover how the IRS now expects central organizations to oversee their members, the new filing requirements, and the $3,500 fee for new applications, all in plain, practical terms.Things You Will Learn:What a group exemption actually is, how it works, and which types of organizations typically use one.What existing group exemption holders must do differently under the new rules and what legacy protections they still have through grandfathering provisions.What it takes to file a brand new group exemption under the 2026 regulations, including the minimum requirements the IRS now mandates before they will even consider an application.Tools & Frameworks Covered:The Affiliation, Supervision, and Control Framework: The three-part structure the IRS now uses to evaluate whether a central organization is properly overseeing its subordinates, and why Robert recommends meeting all three even when only one is technically required.The Uniform Purpose Statement Requirement: A new standard for new group exemption filers that distinguishes a legal organizational purpose from a public-facing mission statement, and why getting this wrong at the document level creates downstream compliance problems.The Supplemental Group Ruling Information Form (SGRI): The formalized annual filing that replaces the old letterhead-based process for managing which organizations are on or off a group exemption letter, and why the shift to a standardized form matters for central organizations.#NonprofitLaw #NonprofitGovernance #501c3 #NonprofitCompliance #CharitableAllies✅ SUBSCRIBE so you never miss an episode:YouTube: https://www.youtube.com/@charitableallies/podcastsApple Podcast: https://podcasts.apple.com/us/podcast/501c-suite/id1854799490Spotify: https://open.spotify.com/show/18IVmECOQ1MMOOthGrSkRhWant more help with your nonprofit’s bylaws?Visit https://charitableallies.org/

Many nonprofit founders begin with passion, a clear mission, and very little else. What separates the organizations that survive from the ones that struggle often comes down to the lessons learned along the way.In this episode, Olivia Froedge sits down with social impact strategist, nonprofit founder, and content creator Amber Melanie Smith to explore her journey from a college student volunteering across the country to launching and leading Activate Good, a nonprofit that mobilized thousands of volunteers in North Carolina.Together, they discuss the realities of startup funding, board leadership, founder burnout, delegation, and how nonprofit leaders can identify funding strategies that actually fit their mission. Amber also shares why understanding your personal mission can help you navigate leadership transitions and build impact that extends beyond any single organization.Things You Will Learn:How nonprofit founders can identify funding strategies that align with their mission, audience, and organizational strengths.Why delegation is one of the most important growth decisions a nonprofit leader can make.How spending time with the people you serve leads to stronger programs and more meaningful impact.Tools & Frameworks Covered:Finding Your Best Fit Funding Model: helps nonprofit leaders identify fundraising approaches that fit their organization, rather than chasing every revenue opportunity.Community Immersion Approach: helps founders design programs based on real needs rather than assumptions.Personal Mission Exercise: helps leaders maintain clarity and direction through growth, transition, and career changes.Zero to $100,000 Nonprofit Fundraising System#NonprofitLeadership #NonprofitStartup #FundraisingStrategy #SocialImpact #CharitableAllies✅ SUBSCRIBE so you never miss an episode:YouTube: https://www.youtube.com/@charitableallies/podcastsApple Podcast: https://podcasts.apple.com/us/podcast/501c-suite/id1854799490Spotify: https://open.spotify.com/show/18IVmECOQ1MMOOthGrSkRhWant more help with your nonprofit’s bylaws?Visit https://charitableallies.org/

Somewhere along the way, a myth took hold that nonprofits are not supposed to make money, and it is costing organizations real sustainability. The truth is that charging for services, goods, and even intellectual property is not only legal for nonprofits. It is often essential to mission longevity.In this episode of 501c Suite, Olivia Froedge is joined by Charitable Allies attorney Justin Fromke for a practical breakdown of program service revenue: what it is, what qualifies, where organizations tend to get tripped up, and when unrelated business income tax enters the picture.From thrift stores and adoption fees to licensing curriculum and renting out buildings, they walk through the most common scenarios nonprofit leaders face and explain what the IRS actually looks for when evaluating whether revenue is mission-aligned.If your organization has ever hesitated to charge for something it provides, this episode gives you the clarity to move forward with confidence.Things You Will Learn:What program service revenue actually is and why so many nonprofit leaders misunderstand what they are allowed to charge for.How to determine whether a revenue-generating activity is related enough to your mission to avoid triggering unrelated business income tax.What steps to take before licensing intellectual property, renting organizational assets, or offering services outside your core exempt purpose.Tools & Frameworks Covered:The Comparability Analysis: Evaluates what other nonprofits and for-profits charge for similar services so organizations can set rates that are reasonable, mission-aligned, and defensible to the IRS.The Related vs. Unrelated Revenue Test: A practical framework for assessing whether a revenue-generating activity furthers the organization's exempt purpose or risks triggering UBIT.The IP Licensing Agreement: A formal structure for nonprofits sharing curriculum, trademarks, or other intellectual property that protects ownership, limits unauthorized use, and guards against providing excess benefit to outside entities.#NonprofitLaw #501c3 #NonprofitGovernance #NonprofitLeadership #CharitableAllies✅ SUBSCRIBE so you never miss an episode:YouTube: ⁠https://www.youtube.com/@charitableallies/podcasts⁠Apple Podcast: ⁠https://podcasts.apple.com/us/podcast/501c-suite/id1854799490⁠Spotify: ⁠https://open.spotify.com/show/18IVmECOQ1MMOOthGrSkRh⁠Want more help with your nonprofit’s bylaws?Visit ⁠https://charitableallies.org/⁠

Performance reviews do not have to feel like a reckoning. And if they do, that is a signal that something broke long before the meeting ever started. When leaders treat reviews as isolated events rather than part of an ongoing feedback culture, employees are left guessing for months, and organizations absorb the consequences in morale, retention, and legal exposure.In this episode, Olivia Froedge of Charitable Allies walks nonprofit leaders through how to build a performance review process that actually serves the people in the room, covering review frequency at every stage of employment, how to structure goal-setting around objective and observable behaviors, what questions to ask and which ones to drop entirely, and how documentation from reviews can protect your organization when difficult employment decisions arise.Things You Will Learn:When to schedule performance reviews based on where an employee is in their tenure, and why defaulting to annual-only leaves critical gaps in communication and development.How to build review rubrics around measurable behaviors and outcomes so that feedback is grounded, fair, and harder to dispute.Which common review practices quietly undermine trust, and what to do instead to keep the conversation productive and legally sound.Tools & Frameworks Covered:The Job Description Standard: Anchors performance measurement to what the employee originally agreed to, keeping evaluations fair and defensible from the very first review.The Dual Submission Review Process: Has both the manager and employee complete the same rubric independently before meeting, then compares responses together to generate honest, unfiltered dialogue.The Behavioral Evidence Rule: Requires managers to bring specific, observable examples to every review rather than impressions or attitudes, keeping feedback actionable and protecting the organization from claims of favoritism or discrimination.#NonprofitLeadership #NonprofitHR #PerformanceManagement #NonprofitGovernance #CharitableAllies✅ SUBSCRIBE so you never miss an episode:YouTube: https://www.youtube.com/@charitableallies/podcastsApple Podcast: https://podcasts.apple.com/us/podcast/501c-suite/id1854799490Spotify: https://open.spotify.com/show/18IVmECOQ1MMOOthGrSkRhWant more help with your nonprofit’s bylaws?Visit https://charitableallies.org/

Most nonprofit teams are not struggling because of bad intentions. They are struggling because no one is clearly saying what needs to be said. In this episode, Olivia Froedge of Charitable Allies explains why consistent, clear feedback is one of the most practical tools nonprofit leaders have to strengthen performance, reduce confusion, and protect their organization from unnecessary risk.Through real examples and a simple, repeatable framework, she shows how to give both positive and corrective feedback without creating fear, why avoiding feedback actually damages trust, and how building this habit removes surprises from performance reviews. If you lead people, this episode will help you communicate in a way that supports your team and your mission at the same time.Things You Will Learn:Why avoiding feedback creates uncertainty and weakens team performance over time.How to give feedback that is direct, useful, and focused on behavior rather than personality.How consistent feedback reduces legal risk and prevents breakdowns during performance reviews.Tools & Frameworks Covered:Ask Permission - Describe Behavior - Describe Impact - Give Feedback: it helps leaders deliver feedback that is clear, grounded, and actionable.No-Surprise Review Principle: ensures performance reviews reflect ongoing conversations.Feedback Frequency Tracking: helps managers build consistency and avoid long gaps without communication.Helpful ResourcesThe Effective Manager Book#NonprofitLeadership #NonprofitManagement #EmployeeFeedback #TeamPerformance #CharitableAllies✅ SUBSCRIBE so you never miss an episode:YouTube: https://www.youtube.com/@charitableallies/podcastsApple Podcast: https://podcasts.apple.com/us/podcast/501c-suite/id1854799490Spotify: https://open.spotify.com/show/18IVmECOQ1MMOOthGrSkRhWant more help with your nonprofit’s bylaws?Visit https://charitableallies.org/

Most nonprofit leaders do not realize how vulnerable their organization is until one preventable incident puts the entire mission at risk. In this episode of 501c Suite, Olivia Froedge talks with Quentin Collins, Director of Volunteer Operations at Trout Unlimited, about how nonprofit leaders can think more clearly and proactively about risk management before something goes wrong.Using real examples from youth camps, volunteer-led programs, and outdoor events, they break down how to identify risk through population, activity, and location, how practical safeguards, waivers, and insurance work together, and why strong preparation protects not just participants, but also staff, volunteers, and the future of the organization.Things You Will Learn:How to identify nonprofit risk by evaluating the population you serve, the activities you run, and the locations where they happen.Practical steps that make nonprofit programs safer, including training, waivers, and insurance working together.How to make better leadership decisions by weighing both the likelihood and the consequences of a risk.Tools & Frameworks Covered:PAL Framework (Population, Activity, Location): helps nonprofit leaders identify where risk is most likely to show up inside programs and events.Three-Layer Risk Prevention Stack: helps organizations reduce exposure through practical risk management, legally sound waivers, and insurance.Likelihood vs. Consequence Risk Matrix: helps leaders decide which risks are acceptable, which need mitigation, and which should be avoided entirely.Helpful ResourcesPreventing Liability and Risk for Nonprofit LeadersTrout Unlimited: Volunteer with TU#NonprofitLaw #NonprofitLeadership #501c3 #NonprofitRiskManagement #CharitableAllies✅ SUBSCRIBE so you never miss an episode:YouTube: https://www.youtube.com/@charitableallies/podcastsApple Podcast: https://podcasts.apple.com/us/podcast/501c-suite/id1854799490Spotify: https://open.spotify.com/show/18IVmECOQ1MMOOthGrSkRhWant more help with your nonprofit’s bylaws?Visit https://charitableallies.org/

Most founders assume they need 501(c)(3) status before they can raise a single grant dollar. But there is a legal pathway that changes everything. Fiscal sponsorship allows mission-driven organizations to accept tax-deductible donations and apply for grants, long before completing the IRS process, and understanding how it works can save emerging nonprofits months of lost momentum.In this episode, host Olivia Froedge sits down with Gavin Funkhouser, Program Manager, Sponsorship Allies (FSA), to demystify the world of fiscal sponsorship from the inside out. Together, they break down the two primary models - Model A and Model C - exploring how each affects autonomy, fees, and day-to-day operations, and walk through real examples of who fiscal sponsorship is actually for, including seasonal charities, for-profit companies with charitable arms, and community startups that need a running start.Things You Will Learn:How fiscal sponsorship works as a legal bridge for organizations not yet holding 501(c)(3) status, and why it is not just for startups.The key differences between Model A and Model C fiscal sponsorship, including how fees, autonomy, and administrative support vary between them.How to evaluate and choose a fiscal sponsor, including what questions to ask about IP ownership, fundraising minimums, and grant compatibility.Tools & Frameworks Covered:Model A vs. Model C Framework: helps organizations understand the trade-offs between full administrative integration and independent charitable operations when choosing a fiscal sponsor.Fee Percentage Analysis: helps nonprofits calculate the real cost of fiscal sponsorship against grant income, comparing sponsor rates (typically 4–15%) to determine financial fit before signing an agreement.Fiscal Sponsorship Agreement Review: helps organizations protect their programs and intellectual property by understanding the ownership, autonomy, and exit provisions written into their sponsorship contract before signing.Helpful ResourcesCharitable Allies: Fiscal Sponsorship OverviewFiscal Sponsorship Allies (FSA)#NonprofitLaw #FiscalSponsorship #501c3 #NonprofitLeadership #CharitableAllies✅ SUBSCRIBE so you never miss an episode:YouTube: https://www.youtube.com/@charitableallies/podcastsApple Podcast: https://podcasts.apple.com/us/podcast/501c-suite/id1854799490Spotify: https://open.spotify.com/show/18IVmECOQ1MMOOthGrSkRhWant more help with your nonprofit’s bylaws?Visit https://charitableallies.org/

Hiring too early can strain a nonprofit, but waiting too long can stall the mission. In this episode, host Olivia Froedge breaks down how nonprofits can tell when it’s truly time to hire their first employee. She explains the three key factors to evaluate before making the leap: work, money, and support, then walks through what hiring actually looks like in practice, from compensation research and payroll realities to board approval and compliance setup.Things You Will Learn:How to tell whether your nonprofit needs more volunteers or its first employee.How to calculate the real cost of hiring beyond base salary.How to prepare your nonprofit legally and operationally for its first hire.Tools & Frameworks Covered:Work, Money, Support framework: helps determine if your nonprofit is truly ready to hireComparable compensation research: helps set fair, realistic pay for nonprofit rolesPEO and payroll software options: help nonprofits manage payroll, taxes, and HR setup more confidently👉 Can I make my nonprofit my full-time job? - https://charitableallies.org/can-i-make-my-nonprofit-my-full-time-job/#NonprofitLaw #NonprofitLeadership #501c3 #NonprofitHiring #CharitableAllies✅ SUBSCRIBE so you never miss an episode:YouTube: https://www.youtube.com/@charitableallies/podcastsApple Podcast: https://podcasts.apple.com/us/podcast/501c-suite/id1854799490Spotify: https://open.spotify.com/show/18IVmECOQ1MMOOthGrSkRhWant more help with your nonprofit’s bylaws?Visit https://charitableallies.org/

Political activity is one of the easiest places for nonprofits to get confused and one of the riskiest places to get it wrong. In this episode, Olivia Froedge is joined by Katie Buckner, nonprofit attorney at Charitable Allies, to break down what 501(c)(3) organizations can and cannot do in election years, from voter education and lobbying to candidate involvement, issue advocacy, and the difference between (c)(3) and (c)(4) entities.They unpack the fine lines nonprofit leaders need to understand, explain how lobbying rules actually work, and share practical guidance for staying compliant while still protecting your mission and speaking up on the issue that matter.Things You Will Learn:How to tell the difference between permitted issue advocacy and prohibited partisan political activityHow to evaluate whether your nonprofit’s lobbying activity is compliant and trackableHow to decide when a (c)(3), a (c)(4), or a dual-entity structure may make senseTools & Frameworks Covered:Direct vs. Grassroots Lobbying: helps nonprofits understand what type of advocacy they are actually doingSubstantial Part Test vs. 501(h) Election: helps leaders measure lobbying limits with more clarityc3 vs. c4 Structure Comparison: helps organizations choose the right compliance path for advocacy goalsAdditional Resource:501(c)(3) Lobbying Limits: What Nonprofits Need to Know Before Advocating - https://charitableallies.org/501c3-lobbying-limits-what-nonprofits-need-to-know-before-advocating/#NonprofitLaw #501c3 #NonprofitLeadership #NonprofitGovernance #PoliticalActivity✅ SUBSCRIBE so you never miss an episode:YouTube: https://www.youtube.com/@charitableallies/podcastsApple Podcast: https://podcasts.apple.com/us/podcast/501c-suite/id1854799490Spotify: https://open.spotify.com/show/18IVmECOQ1MMOOthGrSkRhWant more help with your nonprofit’s bylaws?Visit https://charitableallies.org/