Charitable assets held by a 501c3 organization are dedicated to the charitable purposes of the organization. Generally, this means if the nonprofit organization converts or merges into a for-profit social enterprise entity, like a benefit corporation, the charitable assets must either (1) be granted to another charity with consistent charitable purposes or (2) be sold for fair market value to the for-profit entity with the proceeds from such sale being granted to another charity with consistent charitable purposes. State laws will dictate the options for converting the nonprofit organization or merging it with a for-profit entity.

Lalawelsh, we at the Nonprofit Law Blog completely agree with you. This is terrible advice, but many of us have seen such advice given out regularly. We ask all our readers to consider the source of the information (see the photo of our guest poster).

Thanks, Doug. Credit really goes to Barbara Rhomberg, who is an expert in this area.

Form 1023 is not specifically identified in the regulation, but it is considered by the IRS as a "tax return" ("return of tax") for these purposes and is not specifically excluded by Notice 2011-6. See http://www.irs.gov/charities/charitable/article/0,,id=236908,00.html. The regulation imposes the requirement on "any person who prepares for compensation, or who employs one or more persons to prepare for compensation, all or a substantial portion of any return of tax or any claim for refund of tax under the Internal Revenue Code (Code)."

Thanks for the notice, Joseph. The link should work now.

Some nice feedback on Twitter: philosopher20: "hands down the most forward looking piece on the Three Cups of Tea Scandal" joannefritz: "Luv article ... Grt advice 4 NPOs" lucymarcus: "Gr8 piece" socialedge: "nice piece" GordonJayFrost: "You need to read GTak's [opinion]"

Thanks for the kind words! Readers, check out Meghan's Gifts that Give blog - http://giftsthatgive.wordpress.com/about/.

Thanks Jake! Readers should check it out.

Amy, unless your organization's governing documents (articles and bylaws) state otherwise, a CEO is not automatically a director on the board. It is possible, however, for some organizations to provide in their bylaws that the CEO (who might also go by the title President and/or Chairperson) is an ex officio director. Ex officio means that by virtue of being such an officer, he or she is also a director. Bylaws may also provide that certain officers must be directors. If they are not ex officio directors, the election of such officers would be open only to directors who are otherwise qualified to take on such officer roles. Such persons, if elected, will wear two hats with two different roles: one as a director and one as an officer.