Category: Nonprofit
IRS Says Benefit Corporations May Treat Payments to Charity as a Business Expense
The IRS just released Information Letter 2016-0063, confirming that a “benefit” corporation may deduct payments to charity as an ordinary business expense. This is newsworthy for two principal reasons. First, it confirms that payments made to a charity may be fully deductible … read more
New York Court Upholds Governor Cuomo’s Arbitrary Restrictions on Executive Compensation
In January 2012, Governor Cuomo issued Executive Order #38 (“EO #38”) (9 NYCRR 8.38) which limited compensation and administrative expenses at state-funded non-profit organizations. Undoubtedly, this was the Governor’s knee-jerk reaction to high profile revelations of what appeared to be large compensation … read more
Political Activity and Nonprofits – 501(c)(3)s Beware!
As November approaches, more and more people will get involved in the political process. They will comment on Facebook, knock on doors, help register voters, or donate money to their preferred candidate(s). 501(c)(3) organizations have to be careful, however – under IRS rules, … read more
The Supreme Court Upholds Race-Conscious Admissions Programs
On June 23, 2016, the U.S. Supreme Court upheld the race-conscious admissions program at the University of Texas at Austin (“UT”). Prior to its decision, the constitutionality of the program remained in doubt because Justice Kennedy, a frequent swing vote on the … read more
What will the CHARITY Act do for charity?
On April 6, 2016, Senator John Thune (R-SD) introduced the Charities Helping Americans Regularly through the Year Act (CHARITY Act) on behalf of himself and Senator Ron Wyden (D-OR). If passed, the Act would modify several Internal Revenue Code (IRC) provisions relating … read more
It’s 2016 – Do You Know Where Your Data Is?
Do you recall the old television public announcement that posed the question: “It’s 10 o’clock, do you know where your children are?” The announcement was not really an admonishment, but rather a reminder of the importance of oversight and active engagement. If … read more
Form 990-PF Filers Beware! The Tricky Double Negative of Part VII-B
Paying compensation to directors of tax exempt private foundations can be a delicate matter, especially for relatively modest family foundations. Most foundation managers are aware that such compensation is generally permissible under the Internal Revenue Code, as long as the compensation is … read more
Restricted Funds – Administrative Expenses are Sometimes Permissible
Many of my clients receive much of their funding in the form of restricted gifts designated for specific purposes or programs. I find that many of them unnecessarily pay for the administration of their restricted funds with general operating revenue – sometimes … read more
