Tag Archive for Banking

Why International Nonprofits Should Consider Incorporation

"Registration Desk Sign" by NHS Confederation

“Why or why not should one be incorporated?” is the question American lawyer Don Kramer asked in his Weekly E-Newsletter back in 2010.

For Mr. Kramer, the question is a legal one. The pros and cons that he outlines deal with personal liability and procedural/substantive questions. His fantastically succinct answer refers to state statute and case law.

For some, incorporation is relevant not because of legal concerns but rather taxation benefits. Others might contemplate incorporation through the lense of fundraising and its effects on donors. And yet to others, the act of incorporation or registration is simply a question of time and money — lacking either of the two might automatically render incorporation as an unwarranted expense.

As a banker, and more specifically, as a banker that deals with international nonprofits, I’m interested in easing a charity’s ability to open and manage a bank account.

So like any good Jew, I’ll answer a question with a question. When seeking to solve the riddle of “Should I incorporate?” I ask the following: Will your charity operate internationally?

If the answer is yes, then incorporate. It will make banking a whole lot easier.

6 Reasons "Friends of" Orgs Should Bank Abroad

The fiscal requirements of an American charity have become more complicated in recent years. Increased scrutiny from the IRS, more intricate tax documentation, the recent economic crisis, and donors’ need for transparency, are just a few of the challenges facing the sector. When a charity operates internationally these difficulties are only exacerbated. These global organizations are expected to be familiar with regional and global charity regulations, comfortable working in foreign languages and cultures, able to cope with inherent increased expenses, and capable of forging new relationships – all while maintaining a high level of accountability.

A powerful tool in helping a “Friends of” organization cope is an additional account abroad in the country in which it operates. When used to its potential, this kind of account is invaluable.

Weekly Roundup: December 12

Links to the great articles that I have reviewed and posted to Twitter between December 1 – December 12. This week’s Nonprofit topics include: U.S. Tax & Law • Israeli & Jewish Nonprofits • Strategy & Governance • Marketing & Fundraising • Potpourri.

Guest Post: Lessons from a Short-Lived Nonprofit

Guest Post: Recently, within a matter of months, I opened and then proceeded to close a amutah [Hebrew referring to a registered charity in Israel] here in Israel. I wanted to open up a seminary [religious school] and, with the advisement of experts in the field, decided it would be best for the seminary to run under its own administrative body. Unfortunately, we did not come to this understanding until late into the process of developing the seminary, which meant that we were rushed to register the amutah, file in the tax authorities, and open a bank account. I learned many things in this process that perhaps can help others looking to start their own non-profit organizations.

Weekly Must-Reads: May 16

A list of great articles from around the web that I posted to Twitter from May 2 – May 15, 2010. This week’s topics include: Strategy & Governance; Social Media & Internet >> Fundraising; Social Media & Internet >> Recreation; Israel; Banking & Economy; and Potpourri.

The New Jersey Scandal, Pt. 1: The Facts

Last week (July 23) in New Jersey, an undercover police operation revealed a rainbow of criminal dealings. The implications of the scandal vis-à-vis charities are too vast and far-reaching to be dealt with in one post. Over the next day or two I will address the pertinent issues. Questions and comments are welcome.

Understanding Credit in Israel, Pt 2: Bridge Loan vs. Line of Credit

In a previous post, I mentioned that a loan and a line of credit serve the same purpose. While that may be true in a broad sense, they actually can be quite different. Hence, the different names. The bank will look at both types of credit the same way, evaluating the amount of credit requested against the amount and type of collateral offered. The customer, however, only cares about one thing, which option is cheaper.