Nonprofit Law Matters

David A. Levitt

Posts by David A. Levitt

The Election Is Over. Now What?

Posted in Tax Treatment of Lobbying & Political Activities

Before the election on November 8, you were well aware that your 501(c)(3) charity could not endorse candidates for public office or otherwise intervene in any election.  You carefully monitored your organization’s activities over the course of the campaign to comply with this requirement of your charity’s tax-exempt status.  The election is over, and Donald… Continue Reading

Final PRI Regulations Released

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

The Treasury Department and Internal Revenue Service yesterday released final regulations on private foundation program-related investments. These regulations put in final form nine examples of investments that qualify as PRIs, initially proposed by the IRS in 2012. The White House has been enthusiastic about impact investing as a tool to further social and charitable objectives,… Continue Reading

New York College Cannot Change Its Name in Return for a Proposed Donation

Posted in Charitable Gift Planning, IRS, FTB & Attorney General Controversies, Public Charities

Paul Smith’s College, “the College of the Adirondacks,” was established in 1937 and remains the only baccalaureate-degree-granting institution in Adirondack Park, New York.  Paul’s son, Phelps Smith, bequeathed the bulk of his estate to create a college in his father’s name, and his bequest required that the college “be forever known” as Paul Smith’s College of… Continue Reading

Philanthropic Facilitation Act Encourages Program-Related Investments

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

The Philanthropic Facilitation Act recently was introduced in the House of Representatives by co-sponsors Cory Gardner (R-CO) and Jared Polis (D-CO).  The Act would amend the Internal Revenue Code to create a voluntary review process by which the Internal Revenue Service would determine whether specific investments qualify as a private foundation program-related investment (PRI). Expedited approval… 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

The Election Is Over. Now What?

Posted in Tax Treatment of Lobbying & Political Activities

Before the election on November 6, you were well aware that your 501(c)(3) charity could not endorse candidates for public office or otherwise intervene in any election.  You carefully monitored your organization’s activities over the course of the campaign to comply with this requirement of your charity’s tax-exempt status.  The election is over.  Now what?… Continue Reading

New Guidance from the IRS on Program-Related Investments

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

Yesterday, the Internal Revenue Service released proposed regulations providing new guidance to private foundations regarding program-related investments.  The regulations offer nine new examples illustrating a wide range of investments that can qualify as PRIs.  These nine new examples illustrate certain general principles, such as the following:   Charitable purposes that may be accomplished through a PRI are broad… Continue Reading

Automatic Excess Benefit Transactions

Posted in IRS, FTB & Attorney General Controversies, Nonprofit Governance & Ethics, Public Charities

Did you know that if a 501(c)(3) public charity or a 501(c)(4) social welfare organization fails to properly substantiate payments that it makes to its insiders as either compensation or reimbursement, those payments may be subject to significant excise taxes?  Under Internal Revenue Code Section 4958, the IRS may impose intermediate sanctions on any “excess… Continue Reading