Proposed Legislation Would Require Nonprofit Organizations Participating in California Political Campaigns to Disclose the Identity of Their Donors
Posted in Governance, Political Campaign ActivityTwo new bills recently introduced in the California State Legislature would increase the disclosure requirements applicable to certain nonprofit organizations participating in California political campaigns and would strengthen the enforcement authority of the California Fair Political Practices Commission. Under current California regulations that went into effect this past May , nonprofit organizations such as Section… Continue Reading
IRS and Treasury Release Annual Priority Guidance Plan
Posted in Healthcare Organizations, IRS Filings, Private FoundationsThe IRS and Treasury Department have released their annual Priority Guidance Plan (the “Plan”) for the 2012-2013 fiscal year. The 35-page Plan is available here and includes thirteen projects directly related to Exempt Organizations. At least five other projects, such as final regulations under Section 170 regarding charitable contributions and guidance on Section 403(b) plans,… Continue Reading
Proposed Regulations Change Rules Governing Good Faith Determinations of a Foreign Organization’s Equivalence to a Public Charity
Posted in IRS Filings, Private FoundationsThe IRS recently issued proposed regulations amending the rules applicable to a private foundation’s good faith determination that that a foreign grantee is the foreign equivalent of a public charity or private operating foundation, grants to which will be “qualifying distributions” and not “taxable expenditures.” Most significantly, the proposed regulations expand the class of practitioners… Continue Reading
IRS Advisory Committee on Tax Exempt and Government Entities Recommends Significant Changes
Posted in Formation, IRS FilingsLast week, the IRS Advisory Committee on Tax Exempt and Government Entities (“ACT”) held a public meeting at which the panel submitted its latest round of recommendations to senior IRS executives. At the meeting, the ACT’s Exempt Organizations project team presented a report containing several recommendations intended to improve the application process for organizations seeking… Continue Reading
Proposed Regulations provide helpful new examples of “program-related investments”
Posted in Private FoundationsAs repeatedly promised in its work plan, the IRS recently issued Proposed Regulations containing several new examples of investments that qualify as a “program-related investment” (a “PRI”) for purposes of avoiding potential characterization as a “jeopardizing investment,” which could result in the imposition of excise taxes on a private foundation and its managers under Section… Continue Reading
IRS Extends Filing Deadline for Certain Tax-Exempt Organizations
Posted in IRS FilingsThe IRS has granted an automatic extension for certain tax-exempt organizations to file their annual returns electronically. The extension is being provided because the IRS’s electronic filing system (the “Modernized eFile system” or “MeF”) will not be available for filing Forms 990, 990-EZ, 990-PF, and 1120-POL from January 1, 2012 through February 29, 2012 (the “Suspension Period”). The extension is only available for organizations with filing due dates (whether original or extended) during the Suspension Period (“Affected Organizations”). Ordinarily, organizations with a fiscal year ending August 31 or September 30 would have filing deadlines during the Suspension Period. Under Notice 2012-4, Affected Organizations will automatically be granted an extension of time to file electronically to March 30, 2012.
Recent Changes in Delaware Law Governing Not-for-Profit Corporations
Posted in FormationIncorporating under Delaware law can be an attractive option for a not-for-profit organization because Delaware law often grants greater flexibility with respect to the governance and structuring of the organization. For example, under Delaware law, a corporation (whether organized for profit or not) is only required to have one director, whereas the majority of states require a not-for-profit organization to have at least three directors, and Delaware law does not require a corporation to have officers.
IRS Releases New FAQ Guidance on Reporting Governance Practices on Form 990
Posted in IRS FilingsThe IRS recently released a new list of FAQ and tips for Part VI of Form 990, which requires an exempt organization to provide certain information about its governing board and management, as well as its governance policies and disclosure practices. Of particular interest is the clarification that questions in Section B (about whether… Continue Reading
IRS Warns that Fringe Benefits Trigger Intermediate Sanctions
Posted in IRS FilingsAt a recent conference on nonprofit governance sponsored by Georgetown Law Center, an IRS official stated that fringe benefits have become the most common trigger of intermediate sanctions under Section 4958 of the Code. As most of you know, or should know, Section 4958 of the Code, enacted in 1996, imposes excise taxes on… Continue Reading
Proposed Regulations Expand IRS Authority to Disclose Charitable Organization Information to State Officials
Posted in IRS FilingsOn March 15, 2011, the Treasury published proposed regulations providing guidance on the IRS’s expanded authority to disclose information to appropriate state officers (“ASOs”) under Section 6104(c) of the Code, as amended by the Pension Protection Act of 2006 (the “Act”) . Section 6104(c) of the Code governs when the IRS may disclose certain information… Continue Reading