As you know from our previous post, the IRS has increased its scrutiny of nonprofit organizations engaging in political activity (as it does every 4 years during the presidential election cycle). This is because while 501(c)(4) organizations are allowed to engage in lobbying without limit, they are not allowed to act in favor of or …
Posts Tagged: non-profits
Boy Scouts Board Member Resigns Over Discrimination
A board member of the Boy Scouts of America (BSA) recently resigned to protest a scout leader’s termination based on her sexuality. The board member stated that although BSA explained its standing policy to bar gay leaders, he still believed the act was “wholly discriminatory.” (Read his entire letter here.) Courts have already reviewed and …
Increased IRS Oversight of Organizations with Foreign Assets
Does your nonprofit have foreign assets? If so, a new federal law will soon require it to submit a new report. Nonprofits are already subject to FBAR. In 2013, the Foreign Account Tax Compliance Act will require nonprofits to file an annual form listing foreign assets such as financial accounts, securities, and interests in foreign entities. …
How Would You Steal From Me?
That’s the question a former state regulator recently told nonprofit leaders to ask their staff members. He reasoned that because staff members are familiar with the organization, they are the best source to point out the charity’s weaknesses and vulnerabilities and to suggest improvements. While many nonprofit leaders will not feel comfortable with this approach, …
Clawbacks Lose Ground
Does your organization conduct thorough due diligence before accepting donations? If not (and you’re not alone), your nonprofit may find itself having to repay donations later determined to have been made from funds associated with illegal activities. But Minnesota Gov. Mark Dayton is trying to change that. He recently signed legislation that will help shield …
Attorney General Takes Action
In most states, the Attorney General has the authority to govern organizations that administer or solicit charitable funds. While the authority varies by state, most Attorneys General require initial registrations as well as annual updates. But the Attorney General plays another important role. It acts on complaints about abuses and misuses of charitable assets. Corrective …