[Rowena]

You can start by automating the repetitive parts of nonprofit verification. Such parts include checking registration details, tax-exempt status, and basic organizational information. Using an API can help you verify multiple nonprofits quickly without manually searching each organization. For a small budget, I’d recommend starting with the Pactman Nonprofit Check Plus API, Zeffy API, or ProPublica Nonprofit Explorer. Make sure you check out the pros and cons of each API before deciding.

[Rowena]

The distinction between “interested person” and “disqualified person” is an important one that nonprofits should understand when developing conflict-of-interest policies. The IRS sample policy can be a useful starting point, but organizations should tailor their policies to address broader regulatory and industry-specific requirements. For healthcare nonprofits especially, considering issues such as Stark Law and the False Claims Act alongside IRS requirements can provide more comprehensive governance protection.

[Rowena]

Thank you Sara for the response and suggestions. I will definitely look them up.

[Rowena]

Your board member is correct on the interest rate, but the fix isn’t necessarily Vanguard specifically, it’s matching your cash to your cash-flow timeline. Keep 2-3 months of near-term operating cash in your checking/liquid account. Consider shifting the “extra” seasonal cushion (the amount over what you’ll need before revenue picks back up) to an FDIC-insured high-yield savings or money market at your bank. That gets you most of that yield without leaving your operating funds exposed to market or liquidity risk. Before moving anything I’d encourage the board to adopt a short cash/investment policy first (target liquidity levels, approved account types, who can move funds) so this becomes a documented decision rather than an ad hoc one.

[Rowena]

Fiscal sponsorship generally only works when the sponsored activity furthers the 501(c)(3)’s own charitable/exempt purpose, so sponsoring a 501(c)(7) social club is unusual and would need very careful structuring (and IRS scrutiny) since social/recreational activities typically don’t qualify as charitable use of the 501(c)(3)’s resources. You’d want a nonprofit attorney to review this before proceeding, as the risk is jeopardizing the sponsor’s own tax-exempt status.