Nonprofit Law Matters

Erik Dryburgh

Posts by Erik Dryburgh

Good News for CRATs!

Posted in Charitable Gift Planning, IRS

A charitable remainder annuity trust (“CRAT”) is a trust that pays a fixed amount to a beneficiary (typically the donor) for his/her life or a term of years, and then pays the remainder to one or more charities.  The fixed amount is generally defined as a percentage of the initial value of the asset(s) contributed… Continue Reading

Good News on the Investment Front!! California Passes AB 792, Harmonizing Investment Standards for Nonprofits in California

Posted in Charitable Gift Planning, Private Foundations, Public Charities, Religious Institutions

The stock market may be in shambles, but California charities have reason to celebrate.  Historically, charities formed as California nonprofit public benefit corporations have had to satisfy two state law investment standards:  Corp. Code Section 5240 and UPMIFA (found at Probate Code section 18501 and following).  Corp. Code Section 5240(b) provides that in making investments, a… Continue Reading

An Ethical Issue for Estate Planning Attorneys Who Sit on Charity Boards — Take Heed!

Posted in Charitable Gift Planning

The Maryland State Bar Association’s Committee on Ethics issued an opinion in 2003 regarding an attorney who served on his church’s “Legacy Committee.”  The attorney asked whether he could prepare estate planning documents free of charge for parishioners who wanted to leave a bequest to the church.  The Ethics Committee found that this arrangement would constitute… Continue Reading

CRT Disclosure

Posted in Charitable Gift Planning

We have good news and bad news.   The IRS Form 990 (filed by tax-exempt organizations) includes a number of schedules, including Schedule R: “Related Organizations and Unrelated Partnerships,”  which was rolled out for tax years beginning in 2008.  The 2010 instructions for Schedule R clarified that charities should report charitable remainder trusts (CRTs) that are “related”… Continue Reading

Revised CGA Rates

Posted in Charitable Gift Planning

The American Council on Gift Annuities (ACGA) held its semi-annual meeting on November 7, 2011. The board reviewed the current assumptions that underlie the gift annuity rate schedules and, recognizing the significant changes in the economic environment, approved a new schedule of suggested rates.  These new rates will become effective January 1, 2012.   As you… Continue Reading

Governor Signs Amendment to California Professional Fiduciaries Act

Posted in Charitable Gift Planning

California’s Governor signed AB 997 into law on September 26, 2011.  AB 997 amends the California Professional Fiduciaries Act (the “Act”), which provides for the licensing and regulation of professional fiduciaries via the Department of Consumer Affairs.  Prior law.  The Act defined professional fiduciaries to include a person who serves as trustee for more than… Continue Reading