Nonprofit Law Matters

Monthly Archives: May 2013

Less is More: A Proposal for Tax Simplification for Exempt Organizations’ Political and Lobbying Activities

Posted in Tax Treatment of Lobbying & Political Activities, Unions, Associations, Clubs & Other Tax-Exempt Organizations

Recent press coverage of the IRS’s review of exemption applications, and Washington’s reactions to it, has shone a spotlight on a problem that tax-exempt practitioners have been talking about for years:  the need to clarify standards surrounding political and lobbying activity by exempt organizations, and to make compliance with the law easier, for the IRS… Continue Reading

Let’s Improve 501(c)(4)s, Not Eradicate Them: Rosemary Fei on Bloomberg News

Posted in Formation & Tax Exempt Status, Tax Treatment of Lobbying & Political Activities, Unions, Associations, Clubs & Other Tax-Exempt Organizations

Earlier this week, Gregory Colvin and Rosemary Fei reported on the current scandal at the IRS concerning the Service’s improper review of certain tax-exemption applications, particularly those applications from conservative and Tea Party groups seeking recognition as 501(c)(4) social welfare organizations.  Since the news came out, some commentators have proposed eliminating the 501(c)(4) social welfare category… Continue Reading

A Bad Week for the IRS: Improper Scrutiny of Organizations Applying for Tax-Exempt Recognition

Posted in Formation & Tax Exempt Status, Tax Treatment of Lobbying & Political Activities, Unions, Associations, Clubs & Other Tax-Exempt Organizations

Five of our attorneys, Rob Wexler, Ingrid Mittermaier, Susan Dawson, and the two of us, were in the audience at the American Bar Association Exempt Organizations Committee meeting in Washington, D.C., on May 10. We heard the remarks from Lois Lerner, head of Exempt Organizations at the IRS, apologizing for how the exemption applications of… Continue Reading

Some Restrictions Apply: Donating Restricted Stock

Posted in Charitable Gift Planning

Congratulations!  Your startup is finally going public/being acquired/experiencing some other “liquidity event,” and those shares you have been earning are actually going to be worth something!  Your taxable income is probably going to spike this year, and you may be thinking about offsetting it with a large donation to your favorite public charity.  Your most… Continue Reading

California May Introduce Social Impact Bonds

Posted in Grantmaking & Social Investing, Private Foundations, Social Enterprise

Social impact bonds (“SIBs”), sometimes referred to as “pay-for-success” financing, may arrive in California.  A bill introduced in the legislature, SB9, would establish the Office of Social Innovation and Entrepreneurship Development.  The purpose of this governor’s office would be “to establish partnerships with government agencies, private investors, nonprofit organizations, and for-profit service providers to facilitate the… Continue Reading