Perlman & Perlman

SUMMER 2010

Charity Navigator Expands Rating Methodology
Charity Navigator is adding a new accountability and transparency dimension to its rating system. The new information will focus on whether the charity makes available information regarding its governance practices, finances, effectiveness, and results, based on information available on the organization’s website and Form 990.
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New Federal Bill Could Give Nonprofits a Voice in Government
Congress is looking to create a new council that would establish a formal structure between the federal government and the nonprofit sector. The first of its kind, the council would be composed of leaders from nonprofits, foundations, businesses, and all levels of government, and would be tasked with identifying high-priority issues and making formal recommendations to the federal government on the nonprofit sector.
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Companies Are Partnering With Charities in Wake of Federal Ban on Earmarks
The New York Times recently reported that some for-profit companies have created new charities in order to circumvent Congress’ ban on earmarks to for-profit companies.
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BBB Announces Top Reasons Charities Fail Its Standards
The Better Business Bureau Wise Giving Alliance (BBB) released a list of the top reasons national charities fail to meet its 20 Standards for Charity Accountability. According to the BBB, most groups fail to comply with the Standards relating to transparency, board activity, and effectiveness assessment.
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Unpaid Internships May Generate Liability
The U.S. Department of Labor has recently announced a crackdown on illegal unpaid internships, and if you are not sure what is legal, you may be in for a big surprise.
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UPMIFA Legislation Awaits New York Governor’s Signature
The New York State Assembly and Senate recently passed virtually identical versions of the New York Prudent Management of Institutional Funds Act. The legislation, originally introduced over one year ago, is now awaiting delivery to Governor Paterson.
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China Foundation Center Aims To Increase Transparency of Country’s Charitable Sector
A new organization in China has been established to help increase transparency among Chinese charities and combat public perceptions of corruption and mismanagement. The China Foundation Center will work to encourage greater participation in philanthropy by making information on Chinese foundations’ activities publicly available.
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IRS is Surveying Public’s Experience with 1023 Process
The IRS, in an attempt to improve its service, is randomly surveying individuals who have recently submitted 1023 applications for tax-exempt status.
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Notable State Legislation
In June, Louisiana adopted Senate Bill 318 to regulate disclosures on donation receptacles that are run by entities other than charitable organizations.
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Legislative Developments on New Legal Forms for Social Enterprises
Maryland and Vermont became the first two states in the country to recognize a new type of corporation called a “benefit” corporation.
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Recommended Resources

Is the “benefit corporation,” now a legal corporate form in Maryland and Vermont, the advent of a new way of doing business? Allen Bromberger answers “yes” in his blog at LawForChange.com.

Allen Bromberger will present "The L3C: Anatomy of the New Limited Liability Company" for the NBI Institute Teleconference. Participants will explore structural fundamentals and benefits of choosing the L3C as a business entity on August 20, 2010.

Cliff Perlman joins a panel of experts on the law of electronic solicitation for the workshop "You, the Internet, Money and Your Privacy" at the Direct Marketing Association's upcoming 2010 Nonprofit Conference in New York City on August 24, 2010.

Seth Perlman will join a panel of professionals exploring Cause Marketing, Internet Fundraising, Text Messaging and Facebook at the 2010 NAAG/NASCO Annual Conference "Charities and Regulators: Doing More With Less During Hard Economic Times." The panel will discuss the creation and regulation of innovative fundraising strategies for nonprofits during a down economy on October 4, 2010.

Cliff Perlman will present "Do Good While Doing Well: Integrating Philanthropy with Sweepstakes, Contests and Promotions" at the American Conference Institute's 4th Annual Focus on Sweepstakes, Contests and Promotions on September 24, 2010 in New York City.

The Entertainment Industry Foundation, Hollywood's leading charity, will air its historic fundraising event in support of Stand Up To Cancer (SU2C) simultaneously on CBS, NBC, ABC, Fox and many cable channels on September 10, 2010, at 8PM EST & PST / 7PM CT. The star-studded event focuses on raising public awareness and donations to fund cutting-edge collaborative cancer research.
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Feed The Children, one of the world's largest nonprofit organizations dedicated to helping hungry children, has received an $8.5 million grant from the USAID as part of a 5-year, $20 million project for orphans and vulnerable children that will improve food security and access to nutrition, education, clean water, sanitation and income generation for 40,000 households impacted by HIV/AIDS in Malawi.
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