Guidance on Excess Compensation Rules for 501(c)(3) Execs

The Tax Cuts and Jobs Act (TCJA) was enacted at the end of December 2017. It was a rushed effort, with little or none of the usual thoughtful drafting and committee hearings. Voting was so rushed that many lawmakers candidly admitted they had not had a chance to read much of the legislation before it came up for a vote. What emerged is a comprehensive overhaul of the federal tax code that is - frankly and generally Read More

Too Many Nonprofits?: A New Analysis

How are the nation’s nonprofits like a herd of animals in a forest? That’s the analogy used by a team of five university experts in nonprofit policymaking in connection with their recently published analysis of the “perennial question” of whether there are too many such organizations in the United States - or room for more. They published the full study, titled A Field Too Crowded? How Measures of Market Structure Read More

Rage Giving: The RAICES Example

In  Rage Giving: What’s the Formula For Success?, we described an example of this phenomenon following the tumultuous 2016 presidential election that resulted in windfalls to certain nonprofit organizations. “Americans turned in droves to well-known groups including the American Civil Liberties Union, Planned Parenthood, the Southern Poverty Law Center, and the Environmental Defense Fund.”   We asked: “So Read More

Second Thoughts About Cryptocurrency Donations?

In early April 2018, we posted Bitcoin and More: The New World of Donations. Cryptocurrency was Introduced just a decade ago, but by 2017, it was taking the world by storm. Cryptocurrency has applications and implications across the economic spectrum. The nonprofit world has begun to sit up and take notice: This new technology offers an added type of payment option for charitable donations; it has some notable Read More

The Charity Raffle in CA: An Update

Around the United States, raffles are among the most popular fundraising methods for charitable organizations. Many groups, though, are unaware that raffles are governed by strict rules on a state-by-state basis. A few years ago, in June 2015, we tackled the key misconception; that is, the payout to the winner can be whatever the organization wants it to be. It's Just a Little Raffle: What's the Big Deal? Read More

Church Feud in Bay Area Erupts

Ask any lawyer about the types of disputes that turn ugliest fast: it’s when family members turn on each other. Divorces are notorious for level of hostility; will contests are often worse. There’s another example: when members of a faith family have a falling out. Sadly, it’s not unusual these days for a national church denomination to be at odds with one or more of its constituent congregations. Often, it boils Read More

More About GDPR and Nonprofits

Back in early March 2018, we posted The EU Data-Privacy Law That May Affect U.S. Nonprofits (GDPR) to alert readers of a set of rules in the European Union that may apply to more than a few American organizations. There are hefty penalties for violations; the 2016 law included a grace period until May 25, 2018, after which these penalties would take effect. We correctly guessed that few readers back in March had Read More

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 been 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