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Tuesday, August 28, 2012

Checklist For Starting a 501(c)(3) Foundation Or Non-Profit

Below are some notes for those wishing to start a foundation, charity, or non-profit organization. We put these ideas together and wanted to share it with others. This is not an exhaustive or complete list, but covers many issues that you might want to think about when starting your non-profit - and planning your events.

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Type of Non-Profit

Some of the most frequently asked questions from those interested in non-profit organizations, foundations, and charities are:

Checklist For Starting a 501(c)(3) Foundation Or Non-Profit

"What is the difference between a Public Charity and a (Public) Foundation?" "Is there a difference between a Public Foundation and a Private Foundation?"

Here are some answers.

Public Charities and Foundations

For the most part, there is no real difference between a public charity and a public foundation. Both types of organizations work for the public good, created to support good causes and other unrelated non-profits. If the non-profit is a 501(c)(3) exempt organization, they will have a "determination letter" from the IRS. This means that the entity is exempt from federal income tax under Internal Revenue Code (IRC) 501(c)(3) and donations to the charity or foundation are tax deductible.

Public charities and foundations must receive at least one-third of their support from the general public, including gifts, grants, and fees. In addition, not more than one-third of their support can come from investment income. In essence, it must be publicly supported with a diverse supply of gifts and grants and should not rely on its asset size or investment income.

Private Foundations

On the other hand, a private foundation normally has one main source of support or revenue. For example, a private foundation might be started with a large endowment from a family and never solicit support again. For the most part, you will know if you are a private foundation because you will be setting up the foundation as the main donor. In general, private foundations have less tax benefits than public charities.

Create Entity

Now that you have a clearer picture of the type of non-profit you want to create, your first step is to create a legal entity to give your founders, directors, and trustees protection. The type of legal entity for a not-for-profit varies by state, so don't jump the gun. You may have heard about corporations, S-corporations, or limited liability companies (LLC).

However, some states have specific legal entities for non-profit organizations such as a "Non-Profit Corporation." Check with your local and state authorities. Many of them have very helpful websites. You may want to check with legal counsel or people knowledgeable about non-profit and legal issues. There is normally some nominal fee involved with creating the entity and filing with the Secretary of the State or other appropriate offices.

501(c)(3) Status

After you organize the non-profit corporation as dictated by your state, you may want to apply for 501(c)(3) status with the IRS. As mentioned above, this gives your organization tax-exempt status and ensures donors that contributions to your non-profit will be tax deductible. The 501(c)(3) determination letter from the IRS adds much-needed credibility to your organization.

The application form may seem daunting, but the filing and number of pages look worse than they actually are. In general, the forms are designed to ensure that the non-profit is truly set up for the public good and that there are checks and balances for goodness and righteousness. In addition, the rules and regulations focus on proper disbursement of charitable contributions - and the types of causes that are appropriate. For instance, non-profits should not be established for lobbying or political purposes.

Again, there are certain professionals who can help complete this task, which involves completing an IRS Form 1023 - Application for Recognition of Exemption under Section 501(c)(3) of the IRC. The application fee for the Form 1023 is currently 0 or 0, depending on the non-profit's gross receipts over a four-year period.

The IRS is expected to release a Cyber Assistant to help complete Form 1023 sometime in 2010. Once completed, the Cyber Assistant fee will be 0, or 0 for those filing the regular form by mail.

Liability

In addition to liability for the principals, directors, and trustees - you should consider liability for the organization as it conducts business. Many states have good "liability laws" for non-profits that offer solid "Good Samaritan" protection. Please check with legal counsel or other professionals in your area for more information.

You will want to study and understand the non-profit liability laws in your state. As your organization grows, you may want to look into various options and / or additional protection.

Annual Filings

Non-profit organizations are required to complete annual filings with the IRS to maintain their tax-exempt status. This typically means the IRS Form 990 series. Private foundations file a Form 990-PF and have more stringent requirements, on average.

Public charities file a Form 990 or variations of this form such as a Form 990-EZ, depending on gross proceeds and assets. Small tax-exempt organizations with gross proceeds of less than ,000, may file an electronic postcard, called Form 990-N.

Public charities are also required to file a Schedule A, which ensures that the non-profit receives most of its support from the general public. This is done because public charities or public foundations enjoy certain tax-related benefits over private foundations.

Fundraiser Logistics and Costs

The purpose of a non-profit is typically to raise funds to serve the public good. As you plan various fundraisers and events to raise money, here is a quick list of items to think about. You want to minimize costs - and maximize exposure and effectiveness.

In many cases, local organizations such as businesses or schools may be willing to donate items ranging from the venue, to printing costs, entertainment, gifts / prizes, etc. Please scan the list below to help you in your planning process:

Vision and planning. Have a vision and use good judgment for what you expect of the event. Plan ahead and think of ticket pricing, possible attendees, attendance, and other logistics. Theme of event: participatory or entertainment. Venue. Based on your vision and theme, what kind of venue can you obtain? Will the venue be made available at a discounted rate or donated? Printing and other costs (posters, flyers, tickets, programs). Try to obtain sponsors. Marketing. Think of all the methods available: poster, flyers, cards, and more. Direct mail and advertising. And people! People. Get others involved. Community members may be helpful, as well as the local press. Think of schools (parents, PTAs, principals, superintendents), churches, and businesses. This is for a good cause so hopefully people will be helpful. Helping hands. You will need actual hands to help at the event (collect tickets, money, ushers and guides). Get help early so that everyone can feel a part of the effort that much sooner. This will help with "word of mouth" and "getting the word out." Depending on the fundraising event, a photographer can help to publicize the event and at the least, ensure lasting and good memories for all involved.

We hope you found this information helpful. Please contact us with other useful thoughts.

Checklist For Starting a 501(c)(3) Foundation Or Non-Profit

Rose W. Chin is the founder of "Play It For Good," a 501(c)(3) non-profit which combines Rose's business skills with her interests in character development, education, and volunteerism. Rose is a finance professional with more than 15 years of corporate finance and business planning experience. Rose held various positions of leadership within Fortune 100 Companies: Head of Beverage Finance at Campbell Soup, Executive Director of Business Planning at Avon Products, and VP of Strategic Development at Avery Dennison Corporation.

She is currently a Board Member, advisor and consultant to non-profits, small businesses, and corporations. Rose holds an MBA in Finance from The Wharton School, and serves as a member of the University of Pennsylvania Alumni Secondary School Committee which interviews applicants.

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Sunday, August 26, 2012

What is the Role of a Grand Jury in the Judicial System?

The judicial system of the United States is clearly outlined in Article three of the constitution. The role of a grand jury is explicitly defined in the fifth amendment of the Bill of Rights. A grand jury is assembled in the event of an indictment for a capital or infamous offense. Such a jury is assembled for the purpose of evaluating prosecutory evidence.

Once the evidence is assessed, it is the job of the grand jury to rule on whether or not there is sufficient grounds to continue on to a trial. This is the initial step in the justice systems method of bringing an individual to trial for an offense. The process of assembling this jury begins with a summons from the assignment judge for the hearing. Jurors are chosen to sit on a grand jury through many different methods.

They may be chosen through a random pick by a computer or through drawing numbers similar to that of a lottery system. The number of selected jurors varies depending upon the trial classification. For civil trials there are typically eight individuals who will be seated as grand jurors. With a criminal trial, the number of jurors is most likely to be 14 in number.

What is the Role of a Grand Jury in the Judicial System?

Regardless of the whether the potential case is civil or criminal in nature, there are alternate jurors that must be readily available in the event that a selected juror is excused from the jury. The two main types of grand jury cases involve criminal and civil cases. For cases that fall under the criminal category, the jury may hear evidence and testimony regarding capital offenses such as murder. Anyone accused of a criminal offense has the right under the constitution to a trial by jury.

A criminal court proceeding requires more substantial proof through evidence due to the serious nature of the alleged crime. Grand juries in criminal cases are scrutinized much more closely because the liberty of another person is at stake. In a civil case, the jury is assembled to hear evidence for disputes involving complaints not of a criminal nature. A civil case usually involves two parties, a plaintiff and a defendant.

The grand jury decides, based upon the evidence provided, whether there is sufficient cause to pursue to trial. Prosecutors generally favor a grand jury in bringing a case to trial for the simple fact that if the jury determines there is enough evidence to take the case through to trial, there is a better chance that the trial jury will favor the prosecution due to the evidence. The role of a grand jury in the judicial system, as outlined above, gives a clear picture of the process by which a grand jury functions. The right to a fair trial cannot be preserved without the seating of a proper grand jury.

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Wednesday, August 22, 2012

Cyber Crime

Everyone who works on a computer must be familiar with the term "Cyber Crime". Initially, when man invented computer and then the technology for communicating between computers was evolved, he would have never thought that the cyber space he is creating could be flooded with any crime i.e. cyber crime. But now almost all of us might have heard the term computer crime, cyber crime, e-crime, hi-tech crime or electronic crime which is nothing but an activity done with a criminal intent in cyber space. Simply put, it is an activity which is generally criminal in nature, where a computer or network is the source, tool, target, or place of a crime. To say in one line, "Cyber crime refers to all the activities done with criminal intent in cyberspace."

Such crime involves an information technology infrastructure, including illegal access (unauthorized access), illegal interception (by technical means of non-public transmissions of computer data to, from or within a computer system), data interference (unauthorized damaging, deletion, deterioration, alteration or suppression of computer data), systems interference (interfering with the functioning of a computer system by inputting, transmitting, damaging, deleting, deteriorating, altering or suppressing computer data), misuse of devices, forgery (ID theft), and electronic fraud.

This article intends to give an overview of Cyber Crimes since in e-life (of which we all are a part of) conventional crimes like extortion, forgery etc. are being done with the help of computers; which most of us are using for online monetary transactions.

Cyber Crime

In today's e-Age, 'Crime' has extended itself beyond physical assault or mental torture; now it also affects our e-life. E-Life means our existence & living in the cyber world. Every one of us is a part of this cyber world, directly or indirectly, since computers & internet are now an integral part of our personal & professional life. Just like any other invention, Computers & Internet are a boon to human kind if used in a right way and to the advantage of the society. However, as we all know, everything has its pros and cons and so computers & internet are not an exception. If we consider 'Cyber Crime' as virus then it won't be untrue to say this virus is corrupting man's significant development (computers and internet) which is responsible for developing civilized society for men. Cyber Crime is a menace all over the world and is the one of the most difficult & challenging to detect & investigate. You will find it interesting to note that even the official website of the Cyber Crime Investigation Cell of Crime Branch Mumbai quotes "The invisible criminal is dangerous than the visible one".

You may be wondering why one should know about Cyber Crime?

Most of us are using internet and computers for online transactions where we transmit personal information and possibly do monetary transactions. If your personal information goes in wrong hands and you become bankrupt or you start receiving absurd mails or your e-mail account gets flooded with unwanted mails; means you have become a victim of Cyber Crime.

Cyber Crime has various forms which may include hacking (illegal intrusion into a computer system without the permission of owner), phishing (pulling out the confidential information from the bank / financial institutional account holders by deceptive means), spoofing (getting one computer on a network to pretend to have the identity of another computer in order to gain access to the network), cyber stalking (following the victim by sending e-mails or entering the chat rooms frequently), cyber defamation (sending e-mails to all concerned / posting on website the text containing defamatory matters about the victim), threatening (sending threatening e-mails to victim), salami attacks (making insignificant changes which go unnoticed by the victim), net extortion, pornography (transmitting lascivious material), software piracy (illegal copying of the genuine software / programs), email bombing, virus dissemination (sending malicious software which attaches itself to other software), IPR theft, identity theft, data theft, etc.

Hacking, destroying files and data through spreading virus are the largest number of offences in the cyber world.

"Russia, China and Brazil are world leaders in cyber crime. India is fast emerging as a major hub of cyber crime, however our legal system is already in place to tackle this menace of cyber crime and to control it and punish the guilty. Cyber Crime, which we may define as "an unlawful act wherein the computer is either a tool or a target or incidental to the crime", has both civil as well as criminal remedies.

So let's talk about the remedies available against such crimes. In India, the offence of Cyber Crime is covered under Information Technology Act 2000 and under the Indian Penal Code.

Cyber Crime Cells have been established by law in major cities. These Cells function directly under the Commissioner of Police of respective cities. Central Bureau of Investigation (CBI) already has a cyber crime wing operational since 1999.

The Government has established "The Cyber Regulations Appellate Tribunal" under the Information Technology Act, 2000. The Tribunal has the same powers as are vested in a Civil Court for requiring the discovery and production of documents, receiving evidence on affidavits. But the decisions of the Tribunal can be contested by the High Court. The Information Technology Act not only applies to the offence committed in India, but it can also be used to bring offenders from foreign countries to India for trial.

Powers of Cyber Crime Cells:

Any police officer, not below the rank of a Deputy Superintendent of Police, or any other officer of the Central Government or a State Government authorised by the Central Government in this behalf may enter any public place and search and arrest without warrant any person found therein who is reasonably suspected or having committed or of committing or of being about to commit any offence under this Act.

Punishment for Cyber Crime:

A person found guilty of cyber crime shall be punishable with imprisonment for a term which may extend to three years or with fine or with both.

Salient features of the Information Technology (Amendment) Act, 2008:

The Information Technology (Amendment) Act, 2008 was enacted in October 2009.

The term "digital signature" has been replaced with "electronic signature" to make the Act more technology neutral. A new section has been inserted to define "communication device" to mean cell phones, personal digital assistance or combination of both or any other device used to communicate, send or transmit any text video, audio or image. A new section has been added to define "cyber café" as any facility from where the access to the internet is offered by any person in the ordinary course of business to the members of the public.

There is an addition of several new offences into the Act. Section 66 has now been expanded to include sections 66A, (offensive messages) 66B, (Receiving stolen computer) 66C, (Identity theft), 66D (Impersonation), 66E (Voyeurism) and 66 F (Cyber Terrorism). Section 67 has been expanded to include Sections 67A (Sexually explicit content), 67 B (Child Pornography),

In short about Cyber Terrorism:

Cyber terrorism is the premeditated use of disruptive activities, or the threat thereof, against computers and/or networks, with the intention to cause harm or further social, ideological, religious, political or similar objectives, or to intimidate any person in furtherance of such objectives.

Cyber terrorism can have a serious large-scale influence on significant numbers of people. It can weaken countries' economy greatly, thereby stripping it of its resources and making it more vulnerable to military attack.

Cyber Crime

CS. Monika Bhardwaj - B.Com (H), ACS, LL.B (I) - Gurgaon

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Saturday, August 11, 2012

The Psychology of Crime

On the different dimensions of criminal behavior and understanding the mind of the criminal

Criminals have distinct psychological features and are either exceptionally calm and composed or overtly aggressive and temperamental. Some criminals are extraordinarily intelligent whereas many criminals are of average and low intelligence. However criminal behavior is not caused by aggression alone as there are several other factors that add to criminal behavior. Biologists have tried to provide a genetic explanation of criminal tendencies suggesting that crime may run in the family or hardcore criminals have chromosomal/genetic aberrations. The change in the levels of neuro-chemicals in the body can lead to criminal behavior as some neuro-chemicals such as dopamine and serotonin are directly associated with aggression and psychopathic behavior.

Cyber Law

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However the main and direct cause of criminal behavior in individuals would be family/ immediate environment and schools / social groups, personality, and moral development.

The Psychology of Crime

This is explained with the help of social-personal-moral dimensions of criminal behavior.

Social (Family/Environment) - Aggressive and criminal behavior is largely shaped by society and social groups, by friends, family and other people. Children who are encouraged to behave aggressively towards other people and also towards their parents can grow up to become criminals in later life. If parents and friends encourage aggressive behaviour or if a child always gets his way by shouting and crying, he will in most cases grow up to become a criminal. Extreme control or too much freedom given to a child can cause severe harm to the proper social and moral development of the child. The immediate social environment and the culture in which children are brought up are responsible for the development of criminal behavior so if a child associates with other people who engage in criminal offenses or if he has a violent and aggressive family environment, criminal behavior is again likely. Sometimes children learn to take drugs or alcohol or carry weapons as they try to follow certain group behaviors and this is the foundation of crimes. Disorganized societies and environment as in case of broken homes, disruptive family environment, war zones, conflict torn areas are highly susceptible to crime and criminal activities. The social group or friends introduce the children to either the good things of life such as arts, knowledge and culture or to the negative side of life such as drugs, crime and alcohol and this is the process of social learning. Finally it is the individual who chooses which direction of life s/he will take and this decision largely depends on individual personality.

Personal (Personality/ Dispositions) - Personality disorders have been found to be closely associated with criminal behavior and the criminal is often a psychopath or an antisocial given to mental instability, irritability or extreme aggression and argumentativeness. Some psychopaths are soft spoken and apparently charming and non-aggressive yet are capable of performing the most heinous crimes. Some personality patterns are more vulnerable to criminal behavior than some others. All these people have one thing in common, through their criminal behavior they try to escape reality and vent their frustrations by performing antisocial acts. The escape route is through the crimes and all criminals suffer from an avoidant/escapist personality pattern as they kill or steal because for a few moments they escape reality and its consequences and live in a hazy unreal world comprising only of their unconscious desires and thoughts. Performing a criminal act is like performing a play on a stage and when engaging in a crime, criminals are in a different mental state altogether, which is not exactly normal. As excessive alcohol also induces this mental 'haze', crime rates are often high in alcoholic conditions. Suicide is also a sort of crime although suicide happens when this mental confusion in one's life is prolonged and is often associated with mental illnesses and depression. Manic hyper aroused conditions lead to crimes towards others and depression often leads to crime towards self.

Moral (Conformity/ Rationality) - Moral development of individuals is closely related to conforming to certain norms and standards of society, and control of antisocial or negative behavior is absolutely necessary in preventing delinquent behavior. However the stages of moral development should be understood to delineate the positive or negative impact of non conformity. After compete moral development, individuals may choose to not conform to social standards and try to move beyond norms. This is not always negative and would be associated with novelty and creativity. However when moral development is hindered at an early stage of life when children ignore moral values and ethics of society for their own selfish pursuits and there is a complete lack of external control, the moral development is truncated and lead to criminal behavior in later life. A restraining factor in crime is rational thinking and if individuals can rationalize, reflect and understand the seriousness of crimes, they would be deterred from engaging in crimes and would thus in turn aid their own moral and personal development. According to psychoanalysis we all have criminal/aggressive tendencies but a criminal is the one who directs the basic urges of aggression towards other people and the external world. Moral development of children would be dependent on several factors and according to psychologist Lawrence Kohlberg the first stage of moral reasoning is of obedience and avoiding punishment, the second stage is keeping up to expectations of family members and the final stage is moving beyond social conventions. Criminals are people who have incomplete moral development as their behavior may by motivated by a desire to break the law and challenge obedience and punishment, and this is largely different from mature nonconformity that is at times constructive. A criminal is thus recognized by his destructive and negative personality.

From this we move to the discussion on what exactly goes on in the mind of a criminal and what are the motivations that drive people to criminal activity. Some of the reasons for which people engage in crime would be jealousy/envy, frustration, necessity (for example: extreme poverty), mental disorder (delusion), social disorganization, personal failures, social groups, family environment, influence of drugs/alcohol or neurochemical imbalance. Individual circumstances are as important as the other general factors along social, personal and moral dimensions and criminal behavior could be more impulse / act oriented or planning /mind oriented. The 'impulse oriented' crime acts are impulsive and happen spontaneously when for example, a man kills another in a fit of rage. The 'planning oriented' criminal could be a psychopath or a normal person although the common aspect would be their ability to plan the criminal act as a venture.

Unbelievable that it may sound, a moment of crime is a moment of indifference as the criminal does not concentrate on his own feelings but on the act itself. Thus a criminal can become detached in the moment of crime. In fact this is the strength and the weakness of the criminal, as detachment makes crime easy as the criminal divorces himself from the crime to prevent feelings of guilt and this same ability to get detached could be utilized positively, to develop detachment from the material aspects of life. Criminals if rehabilitated and properly trained can be great sources of strength for the society as all criminals are also capable of devotion, determination and detachment and could be successful religious leaders, social / humanitarian workers and counselors.

The Psychology of Crime

Reflections in Psychology - Part I - by Saberi Roy (2009)
http://www.lulu.com/content/5865445

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