Legal Financial Matters

Dennis Yoder covers the legal and tax duties of nonprofit school boards, focusing on donations, payroll, housing, and required filings.

1. Donations — Unconditional transfers under organizational control; scholarship funds vs. designated gifts; proper receipt requirements (including contemporaneous issuance and the “no goods or services” statement).

2. Payroll — Teachers are employees, not 1099 contractors; volunteers cannot receive cash or gift cards; mileage rates differ for employees and volunteers.

3. Housing and benefits — Fair-market value of housing is generally taxable; de minimis non-cash gifts may not be.

4. Reporting — Form 990 (and when church-controlled organizations are exempt); Form 5578 racial nondiscrimination certification; 1099 thresholds and royalty rules.

5. Additional notes on Section 529 plans, conflict-of-interest policies, and salary/scholarship policies.

Presented by Dennis Yoder at CASBI 2026, Strasburg Mennonite Church, Strasburg, Virginia.