Tax-Exempt Organizations Bulletin

Blog Authors

Latest from Tax-Exempt Organizations Bulletin

New York Attorney General and PayPal Charitable Giving Fund Enter Into Agreement to Address Lack of Transparency in Charitable Giving Campaign

January 22, 2020

On January 14, 2020, the New York Attorney General entered into an Assurance of Discontinuance (the “Settlement”) with PayPal Charitable Giving Fund (“PPGF”)—PayPal, Inc.’s charitable giving arm—to resolve issues raised during an investigation into PPGF’s 2016 giving campaign. The Settlement highlights the importance of adequate disclosure and vetting for third-party fundraising platforms that solicit charitable funds online. PPGF is a 501(c)(3) nonprofit corporation that does business throughout the United States. It functions as a third-party…

Tax-Exempt Organizations Bulletin

NY’s Stop Hacks and Improve Electronic Data Security Act (SHIELD Act) Takes Effect

By Ahsaki E. Benion

November 6, 2019

New York’s “Stop Hacks and Improve Electronic Data Security Act (SHIELD Act)” (the “Act”) officially took effect on October 23, 2019. In pertinent part, the Act amends New York General Business Law (“GBS”) § 899 to expand the scope of “private information” covered under existing data breach notification provisions, to more broadly define what constitutes a “breach” of data security, and to add new data security requirements. The Act applies to all businesses that collect…

Tax-Exempt Organizations Bulletin

Federal Court Invalidates New York Donor Disclosure Law

By Ahsaki E. Benion

October 24, 2019

A federal judge has invalidated a New York state Ethics Law requiring § 501(c)(3) and § 501(c)(4) tax-exempt organizations to publicly report their donors under certain circumstances. Background. Organizations exempt from taxation under Internal Revenue Code (“IRC”) § 501(c)(3) (charitable organizations) are expressly prohibited from participating in any political campaign activity for or against a candidate for public office. Such organizations are permitted to engage in lobbying, but lobbying activity may not constitute a “substantial…

Tax-Exempt Organizations Bulletin

New York Attorney General Releases Guidance on Solicitation Disclosure Requirements

By Ahsaki E. Benion

October 10, 2019

Effective March 2019, § 174-b of the New York Executive Law was amended to add a new requirement that any solicitation by or on behalf of a charitable organization—including any solicitation by a professional fundraiser or professional solicitor—must include a statement of the New York Attorney General’s website address (www.charitiesnys.com) and telephone number ((212) 416-8686) where an individual can receive more information about the charity. In August 2019, the Attorney General released guidance on the…

Tax-Exempt Organizations Bulletin

Court in Mayo Clinic v. U.S. Invalidates U.S. Treasury Regulation

By Ahsaki E. Benion

October 2, 2019

In what may be a bellwether for future challenges to existing U.S. Treasury Regulations, on August 6, 2019 the United States District Court for the District of Minnesota in Mayo Clinic v. United States invalidated Treasury Regulation § 1.170A-9(c) on the grounds that the Treasury Department exceeded the bounds of its statutory authority when it was promulgated. Background Mayo Foundation is an tax-exempt § 501(c)(3) organization that is the parent of several hospitals, clinics, and…

Tax-Exempt Organizations Bulletin

New Workplace Harassment Rules Increase Protections for Workers

By Ahsaki E. Benion

September 25, 2019

On August 12, 2019, Governor Andrew Cuomo signed into law S.6577/A.8421 (the “Act”), providing new workplace harassment protections for New York workers. While certain provisions of the previous law applied only to employers with four or more employees, the Act is applicable to all employers in the state—including nonprofits. Effective October 11, 2019, the Act amends the Executive Law to considerably lower the bar for workplace harassment claims. Under the new law, it is an…

Tax-Exempt Organizations Bulletin

IRS Issues Proposed Regulations and Notice in the Wake of Bullock v. IRS

By Ahsaki E. Benion

September 13, 2019

On September 10, 2019, the Internal Revenue Service issued proposed updates to the information reporting regulations applicable to tax-exempt organizations. The proposed regulations generally incorporate existing statutory amendments and IRS guidance provided since the current regulations were adopted. Among the proposals is a regulation that would put into effect the changes previously announced in Revenue Procedure 2018-38. That Revenue Procedure, and the new proposed regulations, provide that, for tax years ending on or…

Tax-Exempt Organizations Bulletin

Private Foundation Fraud Suit Allowed to Proceed

By Ahsaki E. Benion

September 5, 2019

A Manhattan Surrogate’s Court judge recently ruled that our client Radio Drama Network, Inc., a private foundation, could proceed with its lawsuit to invalidate testamentary instruments that deprived it of a $100 million bequest from its founder. For more on this case, click here.…

Tax-Exempt Organizations Bulletin

Court Reinstates Nonprofit Donor Disclosure Requirements

By Ahsaki E. Benion

August 27, 2019

On July 30, 2019, the court in Bullock v. IRS, No. CV-18-103-GF-BMM (D. Mont. July 30, 2019) invalidated IRS Revenue Procedure 2018-38 governing tax-exempt organizations’ disclosure of donor information on the grounds that it was promulgated without the required notice-and-comment period. Background As described in our previous blog post, prior to Revenue Procedure 2018-38 (“Rev. Proc. 2018-38” or the “Rev. Proc.”), all organizations exempt under Internal Revenue Code § 501(c) were required to report…

Tax-Exempt Organizations Bulletin

Tax Treatment of Charitable Contributions of Virtual Currency

By Ahsaki E. Benion

July 24, 2019

The Internal Revenue Service (“IRS”) defines virtual currency as “a digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value.” Virtual currency is not backed by a government-issued legal tender. Convertible virtual currency such as Bitcoin—by far the most popular—may be used to pay for goods or services, and purchased for, or exchanged into, U.S. dollars or other currency backed by a government. Several for-profit…

Tax-Exempt Organizations Bulletin

Blog Authors

New York Attorney General and PayPal Charitable Giving Fund Enter Into Agreement to Address Lack of Transparency in Charitable Giving Campaign

NY’s Stop Hacks and Improve Electronic Data Security Act (SHIELD Act) Takes Effect

Federal Court Invalidates New York Donor Disclosure Law

New York Attorney General Releases Guidance on Solicitation Disclosure Requirements

Court in Mayo Clinic v. U.S. Invalidates U.S. Treasury Regulation

New Workplace Harassment Rules Increase Protections for Workers

IRS Issues Proposed Regulations and Notice in the Wake of Bullock v. IRS

Private Foundation Fraud Suit Allowed to Proceed

Court Reinstates Nonprofit Donor Disclosure Requirements

Tax Treatment of Charitable Contributions of Virtual Currency

Stay Connected

Company

Support

New to the Network