Dan Pallotta blew the roof off at TED 2013 with his talk about why The Way We Think About Charity is Dead Wrong (over 850,000 views and counting). Dan spoke passionately about the inability of the nonprofit sector to solve some of the society's greatest problems (e.g., poverty has been...
CURRENT AFFAIRS & OPINION
An Introduction to the Nonprofit Sector
As a law student with a desire to help and work with nonprofit organizations, I began working as a legal assistant with the NEO Law Group last summer. While I still have much to learn about the legal issues facing nonprofits, thus far, I have been most intrigued...
Compilation of Nonprofit Sector Predictions for 2013
I always find it interesting to read predictions for the new year. Here are some of my favorites: Ch-Ch-Changes: Nonprofit Sector Predictions for 2013 - Nonprofit Quarterly As the activities of nonprofit and for-profit organizations continue to blur with the commercialization of charities and the growth of socially...
Transitional Relief for Small Organizations – End of Year Deadline
When the Internal Revenue Service announced in June 2011 that approximately 275,000 exempt organizations had lost their exempt status under a provision of the Pension Protection Act of 2006 for a failure to file three consecutive annual information returns, it also provided guidance for organizations seeking to obtain reinstatement...
Contributions to Charity-owned LLCs
The IRS has finally confirmed that a contribution to a disregarded single member LLC ("SMLLC") wholly owned by a U.S. charity that otherwise qualifies under Section 170 of the Internal Revenue Code will be treated as a charitable contribution to a branch or division of the charity. Notice 2012-52...
The University of Virginia Debacle – A lesson in being responsible about your responsibilities
One of the most important responsibilities of a board of directors is to oversee and, when circumstances dictate, terminate the chief executive officer. Boards should recognize that proper procedures, tact and management of potential interpersonal conflicts will be critical in managing any termination of an organizational leader. However, according...
Should Charities Be Protected from the Claws of Fraudulent Transfer Laws? – The Nonprofit Quarterly
I recently wrote for The Nonprofit Quarterly on a bankruptcy trustee’s ability to recover charitable contributions that were made with corrupt funds obtained through a Ponzi scheme. Recovery of these contributions to charitable and religious organizations is generally achieved through a legal action commonly referred to as a clawback...
Corporate Apologies Should be Supported by Community Actions
Another stumble by a big corporation followed by a weak apology and statement that it will do better. The mistakes will happen. What remains distressing, however, is the typical corporation's response, and all eyes should go to the Board of Directors for the tone it establishes by such response....
Attorneys and Startup Nonprofits: PTIN Requirement
Attorneys who are compensated for preparing all or substantially all of the IRS exemption applications (Forms 1023 or 1024) must have a Preparer Tax Identification Number (PTIN) for 2012. Pro bono attorneys who help startup nonprofits are not required to have a PTIN if they prepare such Forms without...
California Benefit Corporation and Flexible Purpose Corporation
California Governor Jerry Brown announced today that he signed into law AB 361 (Benefit corporations) and SB 201 (Flexible purpose corporations). These laws will provide social entrepreneurs with two additional forms of legal entities to consider when creating their social enterprises and represents a tremendous step forward for businesses...