Non-Profits
What federal law covers nonprofits? Give the code and the section.
Internal Revenue Code Section 501(c)(3)
What are the basic elements of a contract?
Offer, acceptance, consideration, capacity, and legality.
Who can be tenants by the entirety?
Married couples
Name three types of corporations
- Sole proprietorship
- Partnership
- Joint venture
- C Corp
- S Corp
- LLC
Where did Professors Auffant and Saul go to law school?
Professor Saul: Columbia Law School
Which New Jersey statute covers nonprofit corporations?
Title 15A
How can a contract offer be terminated?
- Lapse of time
- Rejection (including counteroffer)
- Revocation of offer
- Death or incapacity of offeror
What is a use and occupancy agreement?
A use and occupancy agreement is an agreement allowing a real estate purchaser to use and occupy a residential property in New Jersey before closing or the real estate seller to remain in the property after closing.
What are partners liable for in a partnership?
In a general partnership, each partner has unlimited personal liability. Partners have joint liability for the firm's debts. This means that each partner is liable for the whole balance of the firm's debts.
What Food Network show did Professor Saul win?
Cutthroat Kitchen
What is the difference between a nonprofit and a not-for-profit corporation?
- Tax-exempt status
- Financial reporting obligations
- Purpose/Mission
What court are New Jersey state contract disputes filed in?
The Superior Court of New Jersey
What is the difference between a Bulk Variance and a Use Variance in New Jersey?
A Bulk Variance allows the owner to use the land in a way that is not permitted by the dimensional or physical requirements of the zoning law. A use variance, on the other hand, is a variance that allows the owner to use the property in a way that is not permitted under the zoning law.
What happens to a partnership when one of the partners dies?
Unless the partners have made an agreement that the partnership will continue intact after a partner dies, the general partnership dissolves after the death of a partner.
What season of that Food Network show did Professor Saul win?
Season 3
Are nonprofits tax exempt?
If a nonprofit organization is incorporated and operating as a nonprofit corporation, the nonprofit corporation is exempt from the New Jersey Corporation Business Tax.
To be tax exempt from federal taxes, a nonprofit has to file for tax exempt status and fulfill the requirements under 501(c)(3)
Is breaking a contract illegal?
Strictly speaking, no. Although contracts aren’t laws and breaking them isn’t strictly “illegal,” signing on the dotted line does create legally-binding obligations. You can't be thrown in jail for breaking a contract, but you can be sued for “breach of contract” by the other side if they lost money because of your actions (or inactions).
What is the difference between joint tenants and tenants in common?
Tenants in common may have unequal shares and different ownership interests. Joint tenants must obtain equal shares of the property with the same deed, at the same time. One of the main differences is the right of survivorship. When a property is owned by joint tenants, the interest of a deceased owner gets transferred to the remaining surviving owners. Tenants in common have no rights of survivorship. Unless the deceased owner's will or other instrument specifies that their interest in the property is to be divided among the surviving owners, a deceased person's interest belongs to the estate.
What does "pass-through entity" mean in the context of businesses?
A pass-through entity refers to a business that does not pay income tax of its own. Its income, losses, credits, and deductions “pass-through” to each business owner's personal tax return, where its profits are taxed according to each owner's individual income tax rate. This is beneficial because the taxes are paid once instead of being paid as corporate income tax and personal income tax.
Name three boards or committees Professor Auffant has served on.
- Chair of the Board of Essex Newark Legal Services
- Initial Board member of Newark’s Civilian Complaint Review Board
- Trustee of the Newark Public Library
Can nonprofit organizations lobby?
Yes, but nonprofits cannot devote a substantial part of their activities/funds to lobbying. If a substantial part of its activities is attempting to influence legislation, the nonprofit will not qualify for section 501(c)(3) status.
What is the difference between arbitration and mediation?
In mediation, the parties engage a neutral third party Mediator to facilitate productive conversation between them and help each side clarify its interests and concerns. The parties retain control over the entire process. Mediators do not make decisions or rulings. The agreement, when signed by each party, is a binding contract.
In arbitration, the private judge is in control of the process and the outcome, whereas in mediation, the disputing parties maintain control. The Arbitrator serves as a private judge to listen to the evidence and make rulings to determine the outcome of the dispute.
What happens to a mortgage when the responsible person passes away?
Federal law requires lenders to allow family members to assume a mortgage if they inherit a property. However, there is no requirement that an inheritor must keep the mortgage. They can pay off the debt, refinance or sell the property. If they do not keep the property, debt is recouped from the estate prior to the heirs getting any money.
LLCs. C-Corps, S-Corps, and nonprofit corporations all offer protection from personal liability for the corporate entity's debts and liabilities. Sole proprietorships and partnerships do not protect from personal liability.
What is Professor Auffant's favorite ice cream spot in Newark?
Nasto's Ice Cream in the Ironbound