Do you know who your organization has reported to the IRS as its responsible party? Your organization should make sure the IRS has the current information by the February 28, 2014 deadline. According to the Instructions to IRS Form 8822-B: Beginning January 1, 2014, any entity with...
CURRENT AFFAIRS & OPINION
Top 10 Events in 2013
Here is a list of our top 10 events of 2013 affecting the American nonprofit sector: IRS Exempt Organizations Division controversyIRS Issues Initial Report And Action Plan Following Tax Exempt Organization Scandal, Forbes;IRS Controversy: scrutiny of tax exempt applications, Independent Sector. Federal government shutdownGovernment Shutdown Hurting Nonprofits,...
Holiday Thanks!
Thank you to all our readers. We wish you a very happy holiday season! Here are just a few tips on giving thanks: Make sure your “thank you” receipts to donors are in the form they need to take a deduction. If you make commitments when giving thanks,...
Proposed Guidance for 501(c)(4) Social Welfare Organizations
On November 29, 2013, a Notice of Proposed Rulemaking by the Internal Revenue Service was published in the Federal Register containing proposed regulations that provide guidance to tax-exempt social welfare organizations on political activities related to candidates that will not be considered to promote social welfare. A 501(c)(4) social...
Hearing on the IRS Exempt Organizations Division Post-TIGTA Audit
The House Ways and Means Oversight Subcommittee held a hearing on September 18 to review the audit of the Internal Revenue Service Exempt Organizations Division and question the acting chief of the IRS Danny Werfel. Here are some links and excerpts of articles covering the hearing: Rep. (R-LA)...
Delaware Public Benefit Corporation Signed Into Law
Yesterday, Delaware Governor Jack Markell signed Senate Bill 47, creating a new corporate form called the public benefit corporation. Delaware is the 19th state to enact benefit corporation legislation, which enables business leaders to consider public interest and societal impact in addition to profit when making business decisions. Delaware...
Overhead Myth: Thoughts from a Nonprofit Attorney
On June 17, 2013, the CEOs of GuideStar, Charity Navigator, and BBB Wise Giving Alliance signed a letter to the Donors of America denouncing the “overhead ratio” as a valid indicator of nonprofit performance. Leading commentators applauded the move even while some noted that charity ratings organizations, like...
All Eyes on Delaware’s Public Benefit Corporation Legislation
Last month, with great fanfare, Delaware’s governor Jack Markell introduced legislation providing for the creation of public benefit corporations. Enjoying broad, bipartisan support, the new law is expected to be quickly approved and put into effect as early as August 1, 2013. That Delaware has decided to legislatively...
Treasury Inspector General Report on IRS “Scandal”
On May 14, 2013, the Treasury Inspector General for Tax Administration released its report on the IRS targeting of conservative groups in reviewing applications for exemption under Section 501(c)(4) of the Internal Revenue Code. The report, Inappropriate Criteria Were Used to Identify Tax-Exemption Applications for Review, and problems will...
IRS/EO apologizes for improperly targeting conservative groups
Earlier today, Lois Lerner, the director of the Internal Revenue Service Exempt Organizations division, apologized for the acts of its employees in singling out the exemption applications of Tea Party and other conservative groups for extra scrutiny. The IRS added in a statement that such mistakes "were in no way...