Chapter 3

Non-Profit Laws and Regulations

“In America, the law is a relatively weak force in the realm of charity operations. Within broadly bounded charitable purposes, and subject only to a general proscription against insider self-dealing, no laws tell the entity or its managers how to ‘do’ charity” (Brody, 2006, 243). This statement is, however, only partially true because there are a variety of laws and regulations that affect non-profits’ operations and their management.

American non-profits are the creatures of state laws. However, in terms ...

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