2023-11-07T15:35:00-06:00 2022-12-31 352123203 KSM BUSINESS SERVICES INC PO BOX 40857 INDIANAPOLIS IN 46240 990 2022-01-01 351615544 CHARITABLE ALLIES INC CHAR 4632290229 9100 PURDUE RD 115 INDIANAPOLIS IN 46262 ZACHARY KESTER CEO 4632290229 2023-10-11 1 ZACHARY KESTER 999009999 0 CASSE TATE P01271193 3175802000 2023-10-11 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z ZACHARY KESTER 9100 PURDUE RD 115 INDIANAPOLIS IN 46262 1706058 0 X WWW.CHARITABLEALLIES.ORG X 1984 IN TO PROVIDE, AT GREATLY REDUCED RATES (LOW BONO) OR FOR FREE (PRO BONO), EXCELLENT LEGAL AND LEGAL EDUCATION SERVICES TO NONPROFIT ORGANIZATIONS AND THEIR STAKEHOLDERS (I.E., FOUNDERS, DIRECTORS, MEMBERS AND DONORS) THROUGH OUR CHARITABLE LEGAL AID AND EDUCATIONAL PROGRAMMING. 11 10 20 10 0 0 39383 36531 1468011 1665750 0 1564 1472 2213 1508866 1706058 0 0 0 0 884476 1077342 0 0 57758 723906 699309 1608382 1776651 -99516 -70593 465266 571738 385357 568380 79909 3358 X TO PROVIDE, AT GREATLY REDUCED RATES (LOW BONO) OR FOR FREE (PRO BONO), EXCELLENT LEGAL AND LEGAL EDUCATION SERVICES TO NONPROFIT ORGANIZATIONS AND THEIR STAKEHOLDERS (I.E., FOUNDERS, DIRECTORS, MEMBERS AND DONORS) THROUGH OUR CHARITABLE LEGAL AID AND EDUCATIONAL PROGRAMMING. 0 0 731201 1049423 PROVIDING LEGAL AID LITIGATION REPRESENTATION. MANY NONPROFIT ORGANIZATIONS ARE UNABLE TO AFFORD EXCELLENT, EXPERIENCED NONPROFIT LEGAL SERVICES. CHARITABLE ALLIES PROVIDES THESE SERVICES AT GREATLY REDUCED (LOW BONO) RATES GENERALLY, AND FOR FREE (PRO BONO) WHEN THE CASE/MATTER IS IN SPECIFIC FURTHERANCE OF THE PUBLIC INTEREST AND RELATED TO THE CORE ISSUES OF GOVERNANCE, TAX EXEMPTION AND BOARD LIABILITY. OUR CLIENTS RANGE THE NONPROFIT SPECTRUM, FROM THE ENTITIES WORKING IN THE HUMAN SERVICES SPACE TO CHURCHES, FROM COMMUNITY CENTERS TO SOCIAL SERVICE AGENCIES AND FROM MEMBERSHIP ORGANIZATIONS TO SOCIAL WELFARE ENTITIES, AMONG MANY OTHERS. IN THIS LITIGATION-RELATED PROGRAM WE PRE-LITIGATION NEGOTIATION, LITIGATION, REGULATORY INVESTIGATIONS, CONTRACT DISPUTES AND NEARLY ANY OTHER COMMON LEGAL ISSUE FOR WHICH A NONPROFIT ORGANIZATION WOULD REQUIRE LITIGATION-RELATED REPRESENTATION. 336585 566355 PROVIDING LEGAL AID TRANSACTIONAL AND GOVERNANCE REPRESENTATION. MANY NONPROFIT ORGANIZATIONS ARE UNABLE TO AFFORD EXCELLENT, EXPERIENCED NONPROFIT LEGAL SERVICES. CHARITABLE ALLIES PROVIDES THESE SERVICES AT GREATLY REDUCED (LOW BONO) RATES GENERALLY, AND FOR FREE (PRO BONO) WHEN THE CASE/MATTER IS IN SPECIFIC FURTHERANCE OF THE PUBLIC INTEREST AND RELATED TO THE CORE ISSUES OF GOVERNANCE, TAX EXEMPTION AND BOARD LIABILITY. OUR CLIENTS RANGE THE NONPROFIT SPECTRUM, FROM THE ENTITIES WORKING IN THE HUMAN SERVICES SPACE TO CHURCHES, FROM COMMUNITY CENTERS TO SOCIAL SERVICE AGENCIES AND FROM MEMBERSHIP ORGANIZATIONS TO SOCIAL WELFARE ENTITIES, AMONG MANY OTHERS. WE ASSIST WITH A WIDE VARIETY OF LEGAL NEEDS SUCH AS ACCREDITATION AUDITS, TAX EXEMPTION AND GOVERNANCE, REAL ESTATE TRANSACTIONS, EMPLOYMENT LAW, CONTRACT ANALYSIS, AND NEARLY ANY OTHER COMMON LEGAL ISSUE FOR WHICH A NONPROFIT ORGANIZATION WOULD REQUIRE TRANSACTIONAL AND GOVERNANCE LEGAL REPRESENTATION. 92851 49972 CHARITABLE ALLIES PROVIDES EDUCATIONAL TRAINING TO HELP CLIENTS UNDERSTAND AND COMPLY WITH COMPLEX TAX-EXEMPT ORGANIZATION LAWS AND SOURCES OF LIABILITY FOR NONPROFITS AND THEIR STAKEHOLDERS. WE OFTEN PARTNER WITH OTHER NONPROFIT SERVICE PROVIDERS OR CONVENERS (SUCH AS COMMUNITY FOUNDATIONS, PROFESSIONAL ASSOCIATIONS, AND INSURANCE PROVIDERS) TO PRESENT CONTINUING EDUCATION AND PROFESSIONAL DEVELOPMENT EVENTS ON TOPICS SUCH AS CHANGES OR DEVELOPMENTS IN THE LAW, INDIVIDUAL LIABILITY, AND LABOR-EMPLOYMENT POLICIES THAT AFFECT THE DAILY OPERATION OF EVERY NONPROFIT. WE ALSO REGULARLY CONTRIBUTE ARTICLES AND OTHER MATERIALS TO PUBLICATIONS DIRECTED AT THE NONPROFIT SECTOR. 1160637 1 1 0 0 0 0 0 0 1 0 1 0 1 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 0 0 1 1 0 0 0 1 15 0 1 20 1 0 0 0 0 0 0 0 0 0 0 0 0 X 11 10 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 IN X OLIVIA CLOER 4632290229 9100 PURDUE ROAD SUITE 115 INDIANAPOLIS IN 46268 ZACHARY KESTER DIRECTOR, CEO 40.00 X X 269737 0 10700 ROBERT MILLER TRANSACTIONAL TEAM LEAD/PROG DIR 40.00 X 131295 0 7548 MICHAEL NELSON DIRECTOR, CHAIR 1.00 X X 0 0 0 TINA CLOER DIRECTOR, VICE CHAIR 1.00 X X 0 0 0 ASHLEY GARRY DIRECTOR, VICE CHAIR 1.00 X X 0 0 0 RIMA SHAHID DIR, VICE CHAIR, THRU JAN 2022 1.00 X X 0 0 0 TINA WHITTINGTON DIRECTOR 1.00 X 0 0 0 TED BATSON DIRECTOR 1.00 X 0 0 0 MELISSA COLEMAN DIRECTOR 1.00 X 0 0 0 MEAGHAN HALLER DIRECTOR 1.00 X 0 0 0 MEGAN MCGUIRE DIRECTOR 1.00 X 0 0 0 MATT MCINTYRE DIRECTOR 1.00 X 0 0 0 KIMBERLY WILLIAMS-PUIFER DIRECTOR THRU JAN 2022 1.00 X 0 0 0 401032 0 18248 2 0 1 0 0 36531 36531 LEGAL SERVICES 541100 1665750 1665750 1665750 1564 1564 2213 2213 2213 1706058 1665750 0 3777 280437 98153 168262 14022 665779 599202 53262 13315 60627 56883 713 3031 70499 62744 4935 2820 15376 7688 5535 2153 50370 50370 79759 79759 34950 17475 12582 4893 44840 44840 24389 18534 4391 1464 64758 58282 5181 1295 56262 52324 3938 8770 4385 3157 1228 2812 1406 1012 394 22702 20432 1589 681 61215 30608 22037 8570 BAD DEBT EXPENSE 86685 86685 EDUCATION MATERIALS 76391 76391 CLIENT EXPENSES 39729 39729 LICENSES, PERMITS & SUB 12237 6119 4405 1713 18064 10282 5603 2179 1776651 1160637 558256 57758 9780 64637 1185 16202 129603 131478 19151 22515 104059 40469 78338 63590 84971 79013 142238 194303 465266 571738 77732 119973 0 53898 142238 114712 29550 0 135837 279797 385357 568380 X 68806 3358 11103 0 79909 3358 465266 571738 -70593 -5958 0 X X 0 1 X 1 0 X 55818 1009467 53919 35826 36531 1191561 288686 508769 986605 1468011 1665750 4917821 344504 1518236 1040524 1503837 1702281 6109382 2050 5085 3740 10875 0 2050 5085 3740 10875 6098507 10 1 1564 1575 10 1 1564 1575 1472 2213 3685 344504 1518246 1040525 1505309 1706058 6114642 0.99740 0.99560 0.00030 0.00110 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 142238 560071 587597 114712 1 X 31959 8920 23039 72100 31549 40551 63590 INVESTMENT IN ALLIES 4 GOOD, INC 79013 F 79013 CLIENT FUNDS HELD IN TRUSTS 114712 OPERATING LEASE RIGHT OF USE ASSET 79591 194303 PROMISSORY NOTE 62154 DUE TO RELATED ENTITY 132117 LEASE LIABILITY 85526 279797 X 1791829 -5958 91729 85771 1706058 0 1706058 1868380 91729 91729 1776651 0 1776651 PART IV, LINE 2B: CHARITABLE ALLIES IS A LEGAL AID LAW FIRM. ITS CLIENTS PAY LOW BONO RATES, AND OFTEN PREPAY DEPOSITS/RETAINERS FOR PROJECTS, WHICH ARE KEPT IN IOLTA ACCOUNTS AS REQUIRED BY THE RULES OF ETHICS. PART X, LINE 2: CHARITABLE ALLIES IS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE, THOUGH IT IS SUBJECT TO TAX ON INCOME UNRELATED TO ITS EXEMPT PURPOSE, UNLESS THAT INCOME IS OTHERWISE EXCLUDED BY THE INTERNAL REVENUE CODE. IN ADDITION, CHARITABLE ALLIES HAS BEEN DETERMINED BY THE INTERNAL REVENUE SERVICE NOT TO BE A PRIVATE FOUNDATION WITHIN THE MEANING OF SECTION 509(A) OF THE INTERNAL REVENUE CODE. THERE WAS NO UNRELATED BUSINESS INCOME TAX FOR THE YEAR ENDED DECEMBER 31, 2022 AND 2021. THE ORGANIZATION FILES U.S. FEDERAL AND INDIANA INFORMATION RETURNS. THE ORGANIZATION IS NO LONGER SUBJECT TO U.S. FEDERAL AND STATE INCOME TAX EXAMINATIONS BY TAX AUTHORITIES FOR YEARS BEFORE 2019. MANAGEMENT BELIEVES THAT THE ORGANIZATION'S INCOME TAX FILING POSITIONS WILL BE SUSTAINED ON AUDIT AND DOES NOT ANTICIPATE ANY ADJUSTMENTS THAT WILL RESULT IN A MATERIAL CHANGE. X X X X 0 0 0 0 0 0 0 0 0 ZACHARY KESTER DIRECTOR, CEO 269737 0 0 0 0 0 0 0 10700 0 280437 0 0 0 KESTER LAW FIRM LLC DIRECTOR AND CEO, ZACHARY KESTER 100 IN-KIND PART-TIME LEGAL STAFF 0 SCHEDULE L, PART IV RELATIONSHIP BETWEEN THE ORGANIZATION AND ITS DIRECTOR'S CLOSELY-HELD LAW FIRM, WHEREBY THE STAFF IS PERMITTED TO ASSIST MR. KESTER WITH HIS PRIVATE ADOPTION CASES. THE STAFF KEEP TIME LOGS, SO AN ACCURATE ALLOCATED VALUE CAN BE ASSIGNED TO THE RELATIONSHIP. THE BOARD OF DIRECTORS IS AWARE OF THE RELATIONSHIP AND HAS APPROVED THE RELATIONSHIP. THIS ARRANGEMENT IS PART OF THE OVERALL COMPENSATION PACKAGE TO BE PAID TO MR. KESTER. MR. KESTER'S PRIVATE ADOPTION PRACTICE HAS WOUND DOWN; NO NEW CASES WERE TAKEN IN 2020 OR 2021 AND WORK PERFORMED WAS FOR CASES THAT HAD YET TO FINALIZE DUE TO CONTESTATION ISSUES. ONCE HIS OBLIGATION TO HIS PRE-EXISTING CLIENTS COMES TO AN END, THIS RELATIONSHIP BETWEEN THE TWO ORGANIZATIONS WILL CEASE AND MR. KESTER'S COMPENSATION PACKAGE WILL BE ADJUSTED ACCORDINGLY. FORM 990, PART III, LINE 1 DESCRIPTION OF SERVICES AND EXPLANATION OF PUBLIC CHARITY STATUS: CHARITABLE ALLIES (CA) SERVES TAX-EXEMPT ORGANIZATIONS AND/OR THEIR KEY STAKEHOLDERS (I.E., MEMBERS, OFFICERS, DIRECTORS, TRUSTEES, OR DONORS) WITH ANNUAL GROSS RECEIPTS AT OR BELOW $10 MILLION OR ASSETS WITH A VALUE BELOW $100 MILLION. IF A POTENTIAL CLIENT'S REVENUE AND ASSETS EXCEED THESE LEVELS, CA WILL ONLY REPRESENT THAT ORGANIZATION IF: (1) IT LACKS LIQUID ASSETS TO PAY LEGAL COUNSEL GENERALLY; (2) IF OTHER LAW FIRMS WITH DEEP TAX-EXEMPT ORGANIZATION EXPERIENCE WERE CONFLICTED OFF OF REPRESENTATION; (3) IF THE CLIENT ONLY NEEDS THE SERVICES OF CA AS "BACK UP OR SUPPORT COUNSEL TO THEIR GENERAL COUNSEL LAW FIRM OR IN-HOUSE COUNSEL; OR (4) THE CLIENT CAN DEMONSTRATE, THROUGH SOME OTHER COMPELLING FACTOR, THAT IT IS A MEMBER OF A CHARITABLE CLASS. THE PROVISION OF LEGAL AND EDUCATIONAL SERVICES AS DESCRIBED ON PAGE 2, PART III, LINES 4A AND 4B IS CHARITABLE BECAUSE THE CLIENTS THEMSELVES SERVE TAX-EXEMPT PURPOSES; THEY LACK ADEQUATE REPRESENTATION IN THE PRIVATE SECTOR AND ARE GENERALLY UNABLE TO PAY MARKET RATES FOR SOPHISTICATED, UNIQUE EXEMPT-ORGANIZATION LEGAL SERVICES THAT REQUIRE SPECIALIZED KNOWLEDGE; AND THEY ARE SO NUMEROUS AND INDEFINITE THAT AIDING THEM BENEFITS THE WHOLE COMMUNITY AND NOT PRIVATE INTERESTS. CA'S ESSENTIAL PURPOSE IS TO SERVE A CHARITABLE CLASS MADE UP OF TAX-EXEMPT ORGS (BELOW A CERTAIN SIZE OR OTHERWISE NEEDY) AND THEIR STAKEHOLDERS IN HELPING THEM FULFILL THEIR EXEMPT PURPOSE. CA PROVIDES THESE SERVICES GENERALLY AT REDUCED RATES (LOW BONO - CALCULATED AS AT OR BELOW 50% OF FMV) AND SOMETIMES FOR FREE. CA DOES NOT COMPETE WITH OTHER PRIVATE LAW FIRMS. THE MOST COMPARABLE ARE (1) AND EXEMPT ORGANIZATION (EO) GROUP WITHIN A LARGE LAW FIRM; (2) A BOUTIQUE LAW FIRM THAT FOCUSES ON EO REPRESENTATION; AND (3) A SMALL LAW FIRM THAT PROVIDES EO LEGAL SERVICES MOSTLY TO CLIENTS WHO ARE UNABLE TO AFFORD THE MARKET RATES OF THE FIRMS DESCRIBED IN (1) AND (2). HOWEVER, MOST ATTORNEYS AND/OR FIRMS IN GROUP (3), AS WELL AS SOME IN GROUPS (1) AND (2), LACK THE DEPTH OF EO EXPERIENCE AND KNOWLEDGE OF THE ATTORNEYS AT CA; AND THEY ARE DISTINGUISHABLE ON THE GROUNDS THAT THEY ARE NOT SUBJECT TO NONPROFIT GOVERNANCE REQUIREMENTS AND RESTRICTIONS ON OWNERSHIP THAT APPLY TO NONPROFIT LAW FIRMS. CA MANAGEMENT ANSWERS TO A BOARD OF DIRECTORS. SALARIES FOR ATTORNEYS ARE SET USING COMPARABLE RATES PAID TO LAWYERS IN OTHER TYPES OF NONPROFIT WORK; AND ATTORNEYS DO NOT SHARE IN THE OWNERSHIP OR SUCCESSES OF CA EXCEPT THROUGH A MODEST, PRE-APPROVED, FIXED BONUS STRUCTURE NOT TIED TO LEGAL SERVICE REVENUE. ATTORNEYS OPERATING IN FOR-PROFIT LAW FIRMS DO NOT HAVE THESE RESTRICTIONS. ULTIMATELY, CA CHARGES RATES THAT ARE BASED ON THE CLIENTS LIMITED ABILITY TO PAY. CA IS ALSO FRUGAL IN INFRASTRUCTURE AND MATERIALS COSTS AND PAYS A LOWER SALARY THAN THE PRIVATE SECTOR. MANY OF THE STAFF ATTORNEYS TAKE ADVANTAGE OF INCOME-BASED REPAYMENT AND LOAN FORGIVENESS PROGRAMS FOR SCHOOL LOANS. CA DOES NOT AIM TO COMPETE WITH PRIVATE, FOR-PROFIT LAWYERS. ITS WORK IS PROVIDING A SERVICE TO CLIENTS THAT ATTORNEYS IN PRIVATE PRACTICE CANNOT AFFORD TO REPRESENT. CA ULTIMATELY PROVIDES SERVICES THAT REQUIRE A HIGH LEVEL OF KNOWLEDGE AND SKILL AND ITS WORK IS DESIGNED TO HELP ITS CLIENTS DO THEIR TAX-EXEMPT WORK AND TO OPERATE MORE EFFECTIVELY. THE WORD "SPECIALIZED" IS USED ABOVE IN THE RULE OF ETHICS 1.1 COMPETENCY SENSE, NOT IN THE RULE 7.2 SENSE. FORM 990, PART VI, SECTION A, LINE 2 ZACHARY KESTER, HAS SEVERAL BUSINESS RELATIONSHIPS WITH OTHER DIRECTORS OF CHARITABLE ALLIES THROUGH HIS WORK WITH THE ORGANIZATION. ASCENT 121 IS ALSO A CLIENT OF CHARITABLE ALLIES. MATT MCINTIRE IS THE CEO OF BRACKETS FOR GOOD, WHICH IS A CLIENT OF CHARITABLE ALLIES. RIMA SHAHID IS THE EXECUTIVE DIRECTOR OF WOMEN4CHANGE OF INDIANA, WHICH IS A CLIENT OF CHARITABLE ALLIES. TINA CLOER IS THE CEO OF CHILDREN'S BUREAU A/K/A FIREFLY CHILDREN & FAMILY ALLIANCE. IT IS IMPORTANT FOR CHARITABLE ALLIES TO HAVE CLIENT REPRESENTATION ON ITS BOARD AND THESE ARE SUCH REPRESENTATIVES. FORM 990, PART VI, SECTION B, LINE 11B EACH MEMBER OF THE BOARD OF DIRECTORS IS GIVEN A COPY OF THE 990 PRIOR TO FILING SO THAT THEY MAY REVIEW AND PROVIDE FEEDBACK. FORM 990, PART VI, SECTION B, LINE 12C BOARD MEMBERS ARE REQUIRED TO DISCLOSE ANY POTENTIAL CONFLICTS OF INTEREST AT EACH BOARD MEETING AND ARE SUBJECT TO SANCTIONS FOR FAILURE TO DISCLOSE A POTENTIAL CONFLICT. PRIOR TO ELECTING ANY BOARD MEMBER, THE EXECUTIVE DIRECTOR REVIEWS ANY PAST EMPLOYMENT HISTORY THAT MAY BE A CONFLICT OF INTEREST. THE EXCUTIVE DIRECTOR ALSO LOOKS INTO ANY CHANGE OF EMPLOYMENT OR OUTSIDE ACTIVITIES FOR CONFLICTS WHEN THESE THINGS OCCUR. FORM 990, PART VI, SECTION B, LINE 15 COMPARABILITY DATA WAS EXAMINED THOROUGHLY WHEN DETERMINING THE EXECUTIVE DIRECTOR'S COMPENSATION. THE BOARD ALSO REVIEWED AND APPROVED THE COMPENSATION STRUCTURE FOR THE KEY EMPLOYEES AND THE BOARD REVIEWS ANY RAISE OR BONUS STRUCTURE FOR THE EXECUTIVE DIRECTOR AS WELL. FORM 990, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE NOT CURRENTLY AVAILABLE TO THE PUBLIC. PART XII, LINE 2C THE BOARD OF DIRECTORS IS RESPONSIBLE FOR THE SELECTION, MONITORING AND EVALUATION OF AN INDEPENDENT AUDIT FIRM AND OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS. THERE WAS NO CHANGE IN THIS PROCESS FROM THE PRIOR YEAR. FISCAL SPONSORSHIP ALLIES INC 9100 PURDUE ROAD SUITE 115 INDIANAPOLIS IN 462681190 850839183 FISCAL SPONSORSHIP SERVICES IN 501(C)(3) LINE 12A, I CHARITABLE ALLIES INC 1 0 1 1 1 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 FISCAL SPONSORSHIP ALLIES INC D 132117 CASH