Nonprofit Law Blog

Nonprofit Tweets of the Week - May 25, 2012

2012-05-25T05:00:00-07:00

Here are some of my favorite posts of the week in the areas of nonprofit organizations, corporate governance, philanthropy, and social enterprises:

Adin Miller: Amen! Lucy Bernholz hits a home-run w/ this great post: http://bit.ly/KYowKm calling for evolutionary transformation of philanthropic institutions
Emily: New study finds that 41% of U.S. nonprofits w/ $1M+ annual budgets report $0 expenses on fundraising. - Nonprofit Quarterly - http://bit.ly/KEEqqP
Philantopic: Questions Raised by Report That Nonprofits Claim Zero Fundraising Expenses - http://owl.li/b5c6Z
Patrick Sternal: Yikes!:Tax Payers Cannot Deduct $23k Contribution to Church That Failed to Give Proper Acknowledgment - http://bit.ly/LencmK (TaxProf Blog)
Stephanie Strom: Nonprofits getting abused -- again. NYTimes: Public Money Finds Back Door to Private Schools - http://nyti.ms/Lg3nLO
D5 Coalition: D5 releases its second State of the Work report: a roadmap to greater diversity equity & inclusion in philanthropy - http://bit.ly/Jwd4bp
Debra Beck: Great post by Sarah Mackey - Questions Nonprofit Board Members Should Ask - http://bit.ly/K51fH8
Stanford Law: Money, politics and Citizens United’s fate -- Lyle Denniston SCOTUS blog http://bit.ly/KDKuRb
Law For Change: JOBS Act: Law Firm and Lawyer Resources - http://law4.ch/Kwo5Tq
Stanford Social Innovation Review: New Net Impact study: Employers who give workers ways to make a positive impact will find it pays off: http://ow.ly/b8cgt - Liz Maw
Jereme Bivins: 8 Rules For Creating A Passionate Work Culture - http://bit.ly/MDmK3H

For more interesting tweets, follow me and Emily on Twitter.

Nonprofit Tweets of the Week - May 18, 2012

2012-05-18T06:55:26-07:00

Here are some of my favorite posts of the week in the areas of nonprofit organizations, corporate governance, philanthropy, and social enterprises:

Emily: California's $15.7 billion deficit: Brown Proposes Drastic Cuts to Calif. Social Programs, Education via Nonprofit Quarterly - http://bit.ly/J8HaAr
Sustainable Law Group: New NY nonprofit rules limit executive compensation & impose new reporting requirements - timesunion.com/l
Foundation Center DC: Nice summary of yesterday's House hearing on NPOs: http://ow.ly/aYCoy
Nonprofit Times: The Top 10 Nonprofit Risks - http://bit.ly/JAoy9U [Ed. Short and simple and so important to consider.]
Gene: Make sure your Form 990 can withstand scrutiny - "Many Nonprofits Misreporting Solicited Donations" - http://j.mp/ITELWP
Gayle Gifford: My advice to biz people joining nonprofit boards - http://bit.ly/J2bola
Debra Beck: New post: 10 ways presidents really lead #nonprofit boards - http://bit.ly/Kk9gFw
Omidyar Network: 'ReCoding Good: Part 5'. Rob Reich & Lucy Bernholz explore use of private resources for public good - http://bit.ly/L1rR84 (Stanford Social Innovation Review)
Rob Reich: Inside story on Citizens United at the Supreme Court: John Roberts' fingerprints everywhere. New Yorker - http://nyr.kr/McwNMS
Nonprofit Quarterly: Rich Cohen's recommendations for a new regime of transparency & disclosure in the nonprofit & philanthropic sectors - http://owl.li/aQW3F

And some bonus tweets from the CEB presentation: California's New Social Purpose Corporate Entities presented by Todd Johnson, Susan MacCormac & David Levitt:

Social & environmental shareholder resolutions filed under SEC 14a-8 up 50% in last 10 years; 400 in 2010 & 2011.
Sustainability Accounting Standards Board (SASB) indicators are coming sooner or later; be prepared.
Pass-throughs LLCs owned by nonprofits - unrelated business activities still get attributed to nonprofit (not ideal).
LLC, while very flexible for socent purposes, not ideal for institutional investors.Possible to create a charitable trust in flexible purpose & benefit corporations. Be careful in drafting.
Choice of State is very important for benefit corporations - great variations (CA may have 3rd party suit risks).
Uncertainty re: risks of director liability with new governance standards. Expect higher D&O insurance costs for benefit corporations.

For more interesting tweets, follow me and Emily on Twitter.

Nonprofit Tweets of the Week - May 11, 2012

2012-05-11T04:30:00-07:00

Here are some of my favorite posts of the week in the areas of nonprofit organizations, corporate governance, philanthropy, and social enterprises:

Philanthropy: Congressional Hearing to Examine Nonprofit Tax Issues: Rep. Charles Boustany, who says he wants the IRS to be mo... http://bit.ly/LT1qXJ
Nonprofit Quarterly: Has your nonprofit assessed its level of risk recently? Here’s how to get started. http://owl.li/aOfjF
Debra Beck: 10 ways to: Transform nonprofit board meetings - http://bit.ly/KDF0dm
LawForChange: The NCN reviews the top 10 policy issues nonprofits faced in 2011. http://law4.ch/J2JJ48 [National Council of Nonprofits]
AFJ Bolder Advocacy: Today AFJ officially launches Bolder Advocacy -- giving nonprofits confidence in their policy work: http://bolderadvocacy.org/
Emily: Citizens Dis-United: Justices May Take Another Look at Campaign Finance Case via ABA Journal - http://bit.ly/Iz6f3O
Emily: Informative materials from NASCO on state laws re: fundraising via social media, commercial fundraisers & more: http://bit.ly/JdNv9s
Gene: Fiscal sponsorship: 6 Ways To Do It Right - http://www.fiscalsponsorship.com/ by Greg Colvin & 6 Ways To Do It Wrong - http://bitly.com/apBfUP
Nonprofit Finance Fund: What's the right way for a nonprofit to use a line of credit? Informative article by our Barbara Libove in New York Nonprofit Press - http://bit.ly/Kmwlpu
Patrick Sternal: Episcopal Church is rightful owner of properties, court rules http://latimesblogs.latimes.com/la | Consistent with 2009 Cal Sup Ct church property case

For more interesting tweets, follow me and Emily on Twitter.

Nonprofit Tweets of the Week - May 4, 2012

2012-05-04T05:00:00-07:00

Here are some of my favorite posts of the week in the areas of nonprofit organizations, corporate governance, philanthropy, and social enterprises:

Foundation Center: Developing a Contract or Written Agreement for Your Nonprofit Collaboration - http://bit.ly/J9P0nw
Jim Fruchterman: Clara Miller's fabulous article: The Looking Glass World of Nonprofit Money. http://bit.ly/IFOYHb Still fresh and true after 7 years!
Gene: New valuable resource! "Recurring Accounting Issues Noted and Related Best Practices for Nonprofits" - http://bit.ly/K53qta - Burr Pilger Mayer
Chronicle of Philanthropy: Dispelling 4 myths about endowments - http://ow.ly/aEuni
Gene: Real Estate Acquisition and Development for Nonprofit Organizations - http://www.orgspaces.org/wp from Coblentz
Emily: International Trademark Association presentations and discussion notes on understanding U.S. trademark law and proper use of trademarks - http://bit.ly/JLwU25
C. Garber Siegrist: Whoa! IRS study find $170mill diverted from 285 nonprofits in '09 http://bit.ly/JwwPup
Debra Beck: 10 ways to launch a successful nonprofit board term - http://bit.ly/IzO3dN
Nonprofit Quarterly: Who "owns" your nonprofit? Specifying moral ownership is an essential aspect of nonprofit board governance - http://owl.li/aBp1W
Nonprofit Law News: Proposed Regulations provide helpful new examples of “program-related investments [PRI] - http://bit.ly/IZ0jBS
Centre Social Impact: Social Impact Bonds & Government Contracting: http://ow.ly/aGOsO
Law for Change: What is #crowdfunding? If you want to issue stock online, it is what Congress and the SEC say it is. http://law4.ch/JwgNmG
Living Cities: Philanthropy & the Digital Public Dialogue. Great piece by Jeff Stanger in Stanford Social Innovation Review - http://bit.ly/IhrT0J
California Association of Nonprofits: Exciting day! Check our new site at CalNonprofits.org and the Vote With Your Mission campaign.

For more interesting tweets, follow me and Emily on Twitter.

Council on Foundations 2012 Annual Conference

2012-05-03T04:55:00-07:00

The Council on Foundations 2012 Annual Conference was held in Los Angeles on April 28 - May 2. Once again I was a virtual attendee through the valuable blogs and tweets of others. Here are some my favorites:

Recap

Sixteen Lessons this Next Gen-er Walked Away with from my Time in Los Angeles (RE: Philanthropy) - Michele Frix

Sessions

A “Paradigm Shift” for Corporate Philanthropy (RE: Philanthropy) - Rick Cohen - “'How does business provide that leadership' to solve social problems…and 'how does corporate philanthropy help provide that leadership?'”

Foundations Urged to Do Better at Influencing the Public (The Chronicle of Philanthropy) - Maria di Mento - "One sign of how little foundations interact with the public, he said: Just 50 of the roughly 7,600 foundations in the United States participate in Glasspockets, a Foundation Center project designed to make it easy for anybody to find out what foundations do with their money."

Paving the Way for Philanthropic and Public Policy Partnerships (RE: Philanthropy) - Rick Cohen - "Reed proposed that private foundations partner and establish endowments with community foundations, entrusting them with the advocacy and lobbying agendas that private foundations might not be able to pursue on their own."

Are You Being Left Behind as Technology Ushers In a Whole New Approach to Philanthropy? (Beth's Blog) - Larry Eason and Shelley Wenk - “With or without the knowledge or approval of organizational leaders, social behavior is beginning to happen” and that “Everyone in the organization – not just one department – is engaged in these conversations.”

Tweets

@CaseFoundation: "Foundations have to be a little more fearless. We have this extraordinary privilege to experiment." - @mrsmithDC
@knightfdn: "Don't caught up in the technology, get caught up in how you enter the conversation. - @mrsmithDC
@p2173: “@pewinternet: The New Environment for Foundations: Slides are up for @lrainie's talk from #cdicof/#cofla http://pewrsr.ch/ID0BiM”
@knightfdn: If you missed out on #cdicof #COFLA session on #philanthropy & the digital dialogue, get caught up! http://bit.ly/IE5Mkp via @jeffcdi
@NCRP: New guide to corporate #philanthropy. Here's what we think http://bit.ly/IqmMtc #COFLA @Alliancemag
@aapip: Just released: "Emerging Opportunities: Giving/Participation by Silicon Valley Asian Am Cmties" http://ow.ly/azn65
@QuixoteTilts: Emmett Carson: Marriage equality=civil rights issue of our generation. Whatever the justification, discrimination is discrimination.

Nonprofit Tweets of the Week - April 27, 2012

2012-04-27T04:30:00-07:00

Here are some of my favorite posts of the week in the areas of nonprofit organizations, corporate governance, philanthropy, and social enterprises:

Emily: Common Cause releases IRS complaint alleging ALEC [American Legislative Exchange Council] is not a 501(c)(3) & under reporting lobbying; ALEC responds - http://flpbd.it/gLM6K
Gene: Need to understand the 2011 Form 990 & Schedules - Here's an annotated version from PWC - http://bit.ly/IcLfo3
Gene: Nonprofit doesn't report compensation of executive if paid by third party - Hmm ... http://ow.ly/aqJOh ht GOOD (Special Olympics & Coke)
Nonprofit Issues: New story posted - Is Driver Asked to Take Kids Home from Nonprofit Event a “Volunteer”? http://bit.ly/7OMEbt
Debra Beck: First of nonprofit governance series posted: 10 ways to better board recruitment strategies - http://bit.ly/ItyQry
Emily: Nonprofit Law Prof Blog: IRS Study - Correlation Between Nonprofit Governance and Tax-Exempt Compliance - http://flpbd.it/KO7tk
Alice Korngold: What will it take to build a more effective nonprofit sector? http://bit.ly/5w6A3U Fast Company
Independent Sector: Want to see what a completed Charting Impact report looks like? Check out Independent Sector's report here: http://bit.ly/IFooxJ [Ed. BBB Wise Giving Alliance, GuideStar USA, and Independent Sector developed Charting Impact as a common presentation that allows staff, boards, stakeholders, donors, volunteers, and others to work with and learn from each other; it complements planning, evaluation, and assessment that organizations already undertake.]
Gene: Technology: we have sacrificed conversation for mere connection; changes not only what we do, but who we are - http://j.mp/I3hzt6 ht Lucy Marcus
Emily: Nonprofit Social Media Policy Workbook by Idealware - informative & good conversation starter for your org. Free download: http://bit.ly/KgEQD6
Hub Bay Area: Ben Rattray, founder of Change & former Hub Bay Area member joins Jon Stewart on Daily Show. Awesome to see this - http://bit.ly/K6BkLu
Bainbridge Graduate Institute: Here's an article on social purpose corporations in WA State, from our friends at Geek Wire - http://ow.ly/auwIY [Ed. The law authorizing this new corporate form will be in effect on June 7, 2012.]
Nonprofit Quarterly: What derailed the Kony 2012 actions of April 20th runs deeper than any single explanation http://owl.li/axbNj

For more interesting tweets, follow me and Emily on Twitter.

Nonprofit Tweets of the Week - April 20, 2012

2012-04-20T05:00:00-07:00

Big news in the social enterprise space: San Francisco Supervisors unanimously voted to give city contract preferences to benefit corporations. This is on its way to becoming the first such law in the country. President of the Board of Supervisors David Chiu was responsible for introducing the legislation hailed by many social entrepreneurs but opposed by the California Association of Nonprofits (CAN). CEO of CAN and former Nonprofit Executive of the Year Jan Masaoka explained, “We’re not against the existence of these corporations. We’re against them getting nonprofit-like preferences, without nonprofit-like restrictions and oversight."

Here are some of my favorite posts of the week in the areas of nonprofit organizations, corporate governance, philanthropy, and social enterprises:

Emily: Benefit Corporations getting love from San Francisco! http://bit.ly/IRxJVj // Draft of ordinance (Apr. 11) http://bit.ly/IRA8iF
Emily: Washington Passes Social Purpose Corporations Bill to Permit Corps to Seek Social, Environmental-Oriented Goals http://bit.ly/ISKPAd
Patrick Sternal: IRS EO Director Lois Lerner: Data consistent with premise that "...good governance and tax compliance go hand in hand." http://www.irs.gov/pub/irs-tege/georgetown_04192011.pdf
Lois Fu: IRS EO Director Lois Lerner reports ... nonprofits who have full board review of Form 990 more likely to be compliant with IRS regs
Cecily Jackson: Treasury proposed regulations governing private foundation PRIs - including for-profit recipients http://1.usa.gov/I6oK1v
Nonprofit Quarterly: Is it time for the nonprofit sector to bury the hatchet with donor-advised funds? http://owl.li/anYnQ
Kivi Leroux Miller: New Post: Ten AFP Conference Insights from a Newbie http://ow.ly/1iQbRK
BoardSource: What should all board members know? - http://ow.ly/adDIx
Lucy Marcus: Greg Mortenson’s lessons for non-profit boards - Reuters Opinion http://reut.rs/HG9kD9 [Ed. Here's our take published in The Chronicle of Philanthropy - http://bit.ly/e3oCP7.]
Rick Hasen: “Five Myths About Super PACs”: Must-read Trevor Potter in Washington Post. http://goo.gl/fb/8jyPx [Ed. Potter is the attorney featured on The Colbert Report, explaining Super PACs to Stephen Colbert.]
Gene: California Senate Bill 1341 - failure to file AG registration; notice; revocation; $800 min tax - http://1.usa.gov/HXy6wE

For more interesting tweets, follow me and Emily on Twitter.

Should Charities Be Protected from the Claws of Fraudulent Transfer Laws? – The Nonprofit Quarterly

2012-04-19T13:33:55-07:00

I recently wrote for The Nonprofit Quarterly on a bankruptcy trustee’s ability to recover charitable contributions that were made with corrupt funds obtained through a Ponzi scheme. Recovery of these contributions to charitable and religious organizations is generally achieved through a legal action commonly referred to as a clawback suit under either federal or state fraudulent transfer laws. Many states differ from federal law with respect to the look-back period for undoing these contributions (i.e., statute of limitations). Federal law provides for a two-year statute of limitations, while many states allow for four or five years.

At the heart of this issue are competing hardships and losses between innocent recipients of corrupt funds and innocent victims of a Ponzi scheme. In the end, there are no easy answers. Minnesota recently experienced such policy debates when it enacted a law to reduce the statute of limitations as applied to charitable and religious organizations under state law from six to two years. As discussed in my article:

The aftermath of Ponzi schemes can be particularly difficult to stomach when viewed through the lens of policy debates. Minnesota not only hit the headlines for enacting the new clawback law, but also for the contentious debate prior to its enactment due to the effect it may have on the $3.65 billion Ponzi scheme orchestrated by Minnesota businessman Tom Petters. Although the clawback suits in that case were filed prior to the bill’s enactment, the Minnesota statute provides that it will apply retroactively to clawback suits currently being decided—a provision that Doug Kelley, the bankruptcy trustee for the Petters estate, estimates will result in only half of the $445 million he was seeking to be recoverable.

There was strong support for the law from groups such as the Minnesota Council of Nonprofits, which explained, “Funds given for charitable purposes are done so with specific program goals in mind, and often tied to spending in a specific time period. Re-claiming those resources after the fact is unreasonable, and can put nonprofit organizations in a position of serious financial hardship.” The victory for nonprofits, however, comes at a considerable cost. As the U.S. attorney for Minnesota described during the sentencing phase in the Petters case, “Innocent people have been traumatized. Lives have been ruined. Life savings of hard-working, decent men and women have been lost. The victims of this defendant’s criminal conduct are numerous and include the elderly, the infirm, and even the disabled.”

[Endnotes omitted.]

NPQ is interested in hearing your thoughts on whether charities should be afforded greater protection from clawback suits in the comments section to this NPQ article, “Should Charities Be Protected from the Claws of Fraudulent Transfer Laws?”

Nonprofit Webinar on Advocacy, Lobbying, Election-Related Activities

2012-04-17T21:37:39-07:00

Emily and I are presenting on "Nonprofit Advocacy: Lobbying and Election-Related Activities for 501(c)(3)s" for Nonprofit Webinars on April 18, 10 a.m. Pacific Time. Cost: Free.

Many nonprofits often desire certain legislative and public policy changes by our legislators and publicly elected officials to help further or achieve their charitable missions. Nonprofits, however, often avoid advocating for such changes because the IRS rules regarding nonprofit advocacy tend to be complex and commonly misunderstood. 501(c)(3) organizations in particular are often unsure or unaware of which advocacy activities are permissible and which advocacy activities may jeopardize their tax-exempt status. Additionally, nonprofit advocacy and compliance with IRS regulations is a common hot topic for other groups such as the media, public, and authorities, especially during election years. Given the increased attention and scrutiny to nonprofit lobbying and election-related activities that is to be expected this year, 501(c)(3) organizations would greatly benefit from becoming knowledgeable about nonprofit advocacy rules.

Takeaways:

IRS definitions related to lobbying
Lobbying limits and IRS reporting requirements
IRS definitions related to electioneering
Prohibition on political campaign activity
Permissible election-related activities

Nonprofit Tweets of the Week - April 13, 2012

2012-04-13T05:01:00-07:00

Here are some of my favorite posts of the week in the areas of nonprofit organizations, corporate governance, philanthropy, and social enterprises:

Gene: New MN law limits givebacks by charities that receive donations from frauds like Tom Petters' - http://www.startribune.com/p
GuideStarUSA: SO excited to announce Financial SCAN, 1st-ever platform that assesses nonprofit financial health: http://www.guidestar.org/rxg/p
Gene: Tweeting For a Better World: Essentials of Social Media Strategy for Smaller Nonprofits - http://www.bridgespan.org/t - Bridgespan Group
Ellis Carter: just posted Self-Declared Exempt Organizations – A Guide to Ensure IRS Compliance - http://charitylawyerblog.com/2
Lucy Bernholz: Updated - Governance in the 21st C - http://philanthropy.bl
BoardSource: What should all board members know? http://www.boardsource.org/K
BoardSource: Does Board Size Really Matter? Your Wednesday White Paper: http://www.boardsource.org/dl
Alex Todd: The Board Of Directors: Board Meetings - http://www.avc.com/a_vc
National Council of Nonprofits: Is evaluating the CEO on your nonprofit board's agenda? Resources to help with that task - http://www.councilofnonprofits.org/n
BoardSource: Take a walk down memory lane with Governance in 2011: The Year in Review - http://www.boardsource.org/D
Emily: Attn lawyers! Reasons to Join Nonprofit Board & Concerns to Address: http://www.law.com/jst | Ethics tips: http://www.dlapiper.com/f
Rob Reich: Are Nonprofits People Too? A Discussion of the nonprofit sector in the wake of Citizens United. http://www.ssireview.org/b - Stanford Social Innovation Review

For more interesting tweets, follow me and Emily on Twitter.