Exempt Org. Resource

http://www.ExemptOrgResource.com

ExemptOrgResource.com is an online resource for information and insight on the unique legal issues impacting nonprofit organizations. The site is designed to keep the nonprofit, tax-exempt organization community up-to-date on legal developments, changing regulations and good practices.

Recent Blog Posts

  • IRS to Update 1967 Revenue Ruling Relating to Change of Domicile The Internal Revenue Service (the “IRS”) has announced plans to update Revenue Ruling 67-390, which requires an organization to “re-apply” for  tax-exemption if it changes its corporate structure, including in situations where an exempt organization reincorporates under the laws of another state (even where there is no change in corporate/charitable purposes).  In that revenue ruling, the IRS reasoned that the change resulted in the creation of a new legal entity, and every new legal entity must seek recognition of its... More
  • Court Dismisses Challenge to New York Donor Disclosure Requirement On August 29, 2016, the United States District Court for the Southern District of New York dismissed in its entirety a complaint against the New York Attorney General filed by Citizens United and Citizens United Foundation, challenging the Attorney General’s policy of requiring charities to disclose the names, addresses, and total contributions of their donors in connection with registration to solicit funds in New York.  The plaintiffs maintained, among other arguments, that this disclosure requirement was unconstitutional under the First... More
  • Fall into the GAAP: New Not-for-Profit Financial Reporting Standards Issued As we previously reported, in April 2015 the Financial Accounting Standards Board (“FASB”) circulated a series of proposed changes to generally accepted accounting principles applicable to certain not-for-profit entities in order to provide clearer information to donors, creditors, and other users of financial statements.  On August 18, FASB issued the related accounting standards update.  The new standard is meant to improve the way not-for-profit organizations present and disclose information about net asset classes, expenses, investment return, liquidity and availability of... More
  • New governance requirements for committees and subcommittees of Delaware nonstock corporations A recently passed Delaware law contains new voting and quorum requirements for committees and subcommittees of nonstock corporations.  Specifically, the law amends the Delaware General Corporation Law (the “DGCL”) to define a quorum of a committee or subcommittee as a majority of the directors then serving on such committee or subcommittee and to define an act of a committee or subcommittee as the vote of a majority of its members at a meeting at which a quorum is present (previously, the... More
  • PATH Act 501(c)(4) Matters Update #2: Notification Requirement Clarified; Temporary Regulations and Notification Form Issued As specified in Notice 2016-09 (discussed in our recent blog post on the PATH Act), the IRS has issued temporary regulations describing new notification procedures and a notification form for certain (current and prospective) Section 501(c)(4) organizations.   Background   Section 506 of the Internal Revenue Code (the “Code”), enacted on December 18, 2015, as part of the PATH Act, imposes notification requirements on certain newly established (and already existing) Section 501(c)(4) organizations.   Section 506(a) requires an organization described in Section 501(c)(4) to notify the... More
  • Keep Calm and Carry On: Philanthropy After Brexit On June 23, the people of the United Kingdom voted to leave the European Union.  The decision to leave—commonly known as “Brexit”—has dominated headlines, rattled financial markets, and triggered political uncertainty in the United Kingdom and throughout the world.  Although the United Kingdom has not yet formally initiated the two-year process to leave the European Union, political, financial, and legal experts are actively working to determine Brexit’s short- and long-term implications.   Market-moving events like Brexit can have an impact on the... More
  • NPRA Redux: Proposed NPCL Amendments Approved by Senate and Assembly The New York State Assembly and Senate have passed a bill that, if signed by the Governor, would amend the Not-for-Profit Corporation Law (the “NPCL”) and the Estates, Powers and Trusts Law (the “EPTL”) to clarify and refine some of the changes to both laws effected as part of the 2013 New York Non-Profit Revitalization Act (the “NPRA”).  Bill No. A. 10365B/S. 7913 was introduced on May 24, 2016.  It passed the Assembly on June 15 and the Senate on... More
  • FTC Oversight May Be Extended To Include Charities We have recently written about the increasing importance of cybersecurity as an aspect of risk management for nonprofits in light of the proliferation of data security breaches across different sectors.  (See here and here.)  A bill recently introduced in the House of Representatives would, if passed, give nonprofits even more reason to focus on this issue.   The Federal Trade Commission (the “FTC”) is the agency charged with protecting consumers and the marketplace against deceptive or unfair business practices.  Over the past ten... More
  • New DOL Overtime Rule Changes the Landscape for Nonprofits, Too On May 18, 2016, the U.S. Department of Labor’s Wage and Hour Division (“DOL”) issued a final rule modifying overtime eligibility under the Fair Labor Standards Act.  The final rule increases the salary threshold for overtime eligibility for exempt executive, administrative, and professional employees to $47,476 per year.  It also increases the salary requirement for the “highly compensated” exemption to $134,004 per year. The DOL calculates that this will extend overtime pay eligibility to 4.2 million workers currently classified as... More
  • Proposed Disregarded Entity Regulations: Potential Implications for Charities On May 10, 2016, the Internal Revenue Service (“IRS”) published proposed regulations that would impose additional reporting and record-keeping requirements on domestic “disregarded entities” that are wholly owned (directly or indirectly) by a foreign person (e.g., a U.S. limited liability company the sole member of which is a foreign corporation or individual).  If the regulations are finalized, the domestic disregarded entity would be required to file IRS Form 5472 to disclose any “reportable transactions” with the foreign parent entity and... More