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

  • New OFAC General License Clarifies Ability to Engage in Humanitarian Aid in Ukraine and Russia In connection with the war in Ukraine, the United States has significantly enhanced its sanctions against the Russian Federation.  However, the Department of the Treasury’s Office of Foreign Asset Control (“OFAC”) recently issued a new General License, General License No. 27, which clarifies that the sanctions do not apply to certain humanitarian work in Ukraine and the Russian Federation.  Thus, nongovernmental organizations (“NGOs”) (including 501(c)(3) nonprofit charitable organizations) may engage in certain activities, either directly or by transferring funds in... More
  • Accelerating Charitable Efforts Act Reaches the House Proposals to significantly change the rules surrounding donor advised funds (“DAFs”) and private foundations have been introduced in the House of Representatives.  The Accelerating Charitable Efforts Act (the “Act”), which was previously introduced in the Senate on June 9, 2021, was introduced in the House on February 3, 2022 by Representatives Chellie Pingree (D-ME), Tom Reed (R-NY), Ro Khanna (D-CA), and Katie Porter (D-CA).  The House Bill proposes the same legislative changes as the Senate bill introduced last year.  Like... More
  • Supreme Court Invalidates California Schedule B Disclosure Law On July 1, the Supreme Court issued a major decision concerning nonprofit donor disclosure laws and the First Amendment.  In Americans for Prosperity Foundation v. Bonta, No. 19-251, the Court held that a California law requiring charitable organizations to file their annual I.R.S. Form 990 Schedule Bs with the State—and thus disclose the names and addresses of major donors—is facially unconstitutional because it violates the First Amendment right to free association.  The Court reasoned that disclosure of donor information has... More
  • Senate Bill Proposes Dramatic Changes for Donor Advised Funds and Private Foundations On June 9, 2021, United States Senators Angus King (Ind.-ME) and Charles Grassley (R-IA) introduced the “Accelerating Charitable Efforts Act” or the “ACE Act” (the “Act”) which, if adopted, would implement significant changes with respect to the rules surrounding donor advised funds (“DAFs”) and private foundations.  The proposed changes, already being hotly debated in the philanthropic community, would mandate, among other things, operational changes for DAF sponsoring organizations and offer financial incentives (in the form of both excise taxes and... More
  • COVID-19 Employment Law Updates Our colleagues in Patterson Belknap’s Employment Law and Employee Benefits & Executive Compensation practices have published a number of recent alerts on employment law and employee benefits considerations stemming from the Coronavirus pandemic. These updates are linked below for your convenience. New Federal and State Guidance Regarding Vaccinated Employees (May 20, 2021) New York Imposes New Workplace Safety Measures with Passage of the HERO Act (May 7, 2021) The EEOC Has Announced a New Deadline for Employers to Submit Workplace Diversity Data (April... More
  • Paycheck Protection Program Act Update: Consolidated Appropriations Act, 2021 The Consolidated Appropriations Act, 2021 (the “Act”), which was signed into law on December 27, 2020, includes several updates to the Paycheck Protection Program (the “PPP”) originally established by the Coronavirus Aid, Relief, and Economic Security Act (as modified by the Paycheck Protection Program Flexibility Act of 2020, the “CARES Act”).  The Act appropriates $284,450,000,000 for PPP loans (including second draw PPP loans for prior recipients, as described below), allows for certain prior recipients of PPP loans to apply for... More
  • Paycheck Protection Program Act Updates Since our last update describing changes made to the Paycheck Protection Program (the “PPP”) by the Paycheck Protection Program Flexibility Act of 2020 (the “PPPFA”), which was signed into law by President Trump on June 5, 2020, the U.S. Small Business Administration (the “SBA”) has published numerous revisions to prior interim final rules (“IFRs”) it had released to govern implementation of the PPP with respect to eligibility requirements, disbursement, loan forgiveness and loan review to conform to the PPPFA and clarify certain... More
  • CARES Act: Paycheck Protection Program Guidance Our colleagues in Patterson Belknap’s Corporate and Tax-Exempt Organizations practices have published a number of recent alerts on the CARES Act's Paycheck Protection Program. These updates are linked below for your convenience. Paycheck Protection Program Act Updates (July 6, 2020) Paycheck Protection Program Flexibility Act and Updates on Foreign Affiliates and Loan Forgiveness (June 8, 2020) CARES Act: Paycheck Protection Program Loan Forgiveness Application Released (May 22, 2020) CARES Act: Paycheck Protection Program Guidance Updated (May 15, 2020) CARES Act: Additional Guidance on the Paycheck... More
  • Proposed 4960 Excise Tax Regulations Issued On June 5, 2020, the Internal Revenue Service (“IRS”) issued proposed regulations on the excise tax on excess tax-exempt organization executive compensation under Section 4960 of the Internal Revenue Code (the “Excise Tax”).  This tax, which was enacted as part of tax reform in 2017, applies to certain tax-exempt organizations (or related organizations) that pay annual remuneration in excess of $1 million or so-called “excess parachute payments” to certain “covered employees” (generally, employees who were among the five highest-compensated employees... More
  • Paycheck Protection Program Flexibility Act and Updates on Foreign Affiliates and Loan Forgiveness The Paycheck Protection Program Flexibility Act of 2020 (the “PPP Flexibility Act”) was signed into law by President Trump on June 5, 2020, which provides Paycheck Protection Program (the “PPP”) loan borrowers additional time to incur costs that count towards PPP loan forgiveness, reduces the portion of such costs that must be payroll costs, provides an additional exemption from the CARES Act’s loan forgiveness reduction provisions and extends the deadline to rehire workers in order to remain qualified for full forgiveness. ... More