On May 6, 2019, the New York and New Jersey Attorneys General filed a lawsuit against the U.S. Department of the Treasury (the “Treasury Department”) and its bureau the Internal Revenue Service (the “IRS”) for failing to respond records requests made pursuant to the Freedom of Information Act (“FOIA”). The requests sought records and information concerning the development and implementation of Revenue Procedure 2018-38 (the “Revenue Procedure”), which contains procedures modifying the information to be…

On July 19, 2018, the New York Attorney General announced a settlement with Tennessee-based charity Operation Troop Aid Inc. (“OTA”) for failure to properly oversee donations received as part of a commercial co-venture. OTA operated for the stated purpose of sending care packages to military service members, primarily during deployment. From at least 2012 to December 31, 2017, the charity engaged in a commercial co-venture relationship with Harris Originals of NY and affiliated retailers collectively…

Internal Revenue Service Notice 2018-67 (the “Notice”) sets forth interim guidance relating to Internal Revenue Code § 512(a)(6) Special rule for organization with more than one unrelated trade or business. Enacted on December 22, 2017 as part of Public Law 115-97 (the “Tax Cuts and Jobs Act”), Code § 512(a)(6) provides that in the case of any organization with more than 1 unrelated trade or business— unrelated business taxable income, including for purposes of determining…

Effective October 9, 2018, New York Labor Law § 201-G requires all New York state employers—including nonprofit organizations—to maintain a sexual harassment prevention policy and conduct an interactive sexual harassment prevention training program that meets certain minimum standards set forth in models provided by the Department of Labor. Employers may adopt the models promulgated by the Department, or establish a sexual harassment prevention policy and training program that equals or exceeds the minimum standards provided…

Click here to read our Client Advisory explaining why nonprofit organizations are particularly vulnerable to cyber-attacks, describing common cyber threats and applicable privacy and data breach laws and regulations, and providing recommended best practices for nonprofits.…