Crowdfunding Regulation in CA: What’s Next?

Crowdfunding for charitable purposes and beneficiaries has exploded in popularity in recent years. “It seems like a perfect marriage: the internet and charitable fundraising.” A lightning-speed way to pitch alerts about causes - often in times of emergency - for which generous people in your own backyard as well as around the globe can help with the click of a mouse. See, for instance, our earlier posts on Read More

Another Bungled College Closing

All around the United States, in recent years, small liberal arts college are facing tough choices resulting from increasing costs but declining enrollments. Part of this is the result of a demographic trend: the post World War II population explosion that produced huge student pools of baby boomers a few decades ago has receded as boomers, themselves, produced far few children.   For these colleges , there have Read More

Are Funders Ready to Throw the Overhead Myth Overboard?

Once upon a time - not so long ago - nonprofit organizations lived in an enchanted land where on the stroke of midnight a fairy godmother swooshed in, waved her magic wand, and - poof! - gone were all of the general operating expenses incurred that day.   Bright and early the next morning, the grateful trustees, executive directors, and fundraisers were free to - truthfully - tell all and sundry that their Read More

Court Rules Affiliated Nonprofits Protected from Creditors

The Eighth Circuit Court of Appeals recently issued an important ruling that has “major implications for nonprofit organizations” including the many groups around the nation that are organized - to a more or less degree - on the parent/subsidiary model. In re The Archdiocese of Saint Paul and Minneapolis, Case No. 17-1079 (April 26, 2018) involved a scenario now, sadly, all too familiar: a deluge of sex-abuse Read More

UBIT Transportation Rules: Interim Guidance

By the fall of 2017, GOP leaders of Congress were determined to pass a major tax overhaul before the end of the year. But much of the detail work had not yet been done. They moved draft legislation through each chamber so quickly that many lawmakers were unable to read all, or even a substantial part, of the proposed additions and amendments to the federal tax code before the scheduled votes. Nevertheless, The Read More

Foundation Law: Free Online Learning

Now, perhaps more than ever, there’s a need for more people in the philanthropy sector to learn the ins and outs of the law of nonprofit organizations. For example, funders want and need to know how they can participate in the social movements sweeping the nation. New and existing 501(c)(3)s are eager to understand what they can and cannot do in terms of advocacy along with how foundation funders can lawfully help Read More

Business Fundamentals: What is a “Sole Proprietorship”?

  We get this question all the time. Derived from the word “proprietor” – and first used in 1537 – a sole proprietorship offers the most flexibility and greatest freedom of all the business forms. However, it is not a separate entity and has no separate existence from that of it’s owner. Often times, businesses begin as sole proprietorships and graduate to more complex business forms as the business Read More

UBIT Transportation Rules: Interim Guidance

By the fall of 2017, GOP leaders of Congress were determined to pass a major tax overhaul before the end of the year. But much of the detail work had not yet been done. They moved draft legislation through each chamber so quickly that many lawmakers were unable to read all, or even a substantial part, of the proposed additions and amendments to the federal tax code before the scheduled votes. Nevertheless, The Read More

Troubled Waters at Several United Ways

“A … woman, a priest, two ministers and a rabbi got together….” “It sounds like the beginning of a bad joke,” according to the United Way on its website, “but they didn’t walk into a bar; what they did do was recognize the need to work together in new ways [in 1887] to make Denver a better place.” More than 130 years later, in 2018, the organization is the largest privately funded nonprofit in the world with Read More

Charities’ Congressional Wish List

It’s safe to say it's a new day in the U.S. Congress. There’s an entirely different House of Representatives after the blue wave of November 2018. Of course, there’s still a GOP-controlled Senate and White House, so the power dynamics won’t significantly change. Nevertheless, the lower chamber has the power of the purse; controlling appropriations is a significant cudgel.    In addition, Democrats now control Read More