Pending legislation in Congress will, if passed, affect tax-exempt organizations in two ways: (1) it will make e-filing the mandatory method for all exempt organizations for filing any required information returns, including the Form 990 Series, and (2) it will require the Internal Revenue Service to send a notice to organizations which have missed filing two consecutive information returns before it’s too late to Read More
The Parsonage Allowance: Constitutional, Once Again
“I assume it's not just me who checks the 7th Circuit opinion pages multiple times a day to see whether the #ParsonageAllowance decision has been issued yet. I mean, everybody's checking, right?” [Tweet 1/23/19 1:58 pm @smbrsun ] In the fall of 2018, Sam Brunson sat in the federal courthouse in Chicago watching the oral argument hearing in Gaylor v. Mnuchin. In the following months, he eagerly awaited the Read More
Group Exemptions: New Procedure
For the many 501(c)(3) organizations around the nation that have group - rather than individual - tax exemptions, the Internal Revenue Service has announced an important, but not widely publicized, procedural change in the annual reporting requirements. The parent - or “central” - organizations should take note of, and act on, this information immediately. Group Exemptions as Administrative Convenience A Read More
Form 990: Newest Update
The federal Form 990 is the “information return” that most tax-exempt organizations - including, but not limited, to 501(c)(3)s - must file each year. From time to time, the government updates and revises this document. The most comprehensive overhaul occurred in 2008, when Treasury and IRS officials worked with state charity regulators to beef up the Form 990, making it more useful as a source of Read More
Exempt Organizations, the IRS, and YouTube
From time to time, we pass along tips about educational resources - online and free of charge - that help folks in the exempt organizations field be aware of, and better understand, the mind-boggling maze of laws that apply. A few months ago, for instance, we posted Foundation Law: Free Online Learning about a great training site created by the legal staff at four major American foundations. It includes a Read More
More Groups Want 501(c)(4) Status
There is a discernible trend in the current political climate by liberal organizations away from the traditionally favored 501(c)(3) public-charity, tax-exempt status. More than a few academics and observers have noticed an anecdotal shift to the less beneficial - but also less restrictive - 501(c)(4) social-welfare category. Indeed, in January 2018, FPLG pal Gene Takagi, Esq, predicted that 2018 will be the year Read More
Gift Substantiation Final Regulations: At Last!
It’s taken an excruciatingly long time: almost 10 years. Treasury Regulations first proposed in 2008 are now approved and final as of July 30, 2018. They are published under the title “Substantiation and Reporting Requirements for Cash and Noncash Charitable Contribution Deductions,” designated as Treasury Regulation Sections 1.170A-15 (cash), -16 (noncash), -17 (qualified appraisals and appraisers), and -18 Read More
Charity Naming Rights: A Provocative Idea
Philanthropic naming rights “...are the charitable cousin of corporate - commercial - naming rights.” In Naming Rights: It's a Philanthropic Jungle Out There, we explained that “...huge amounts of money - donated, of course, instead of invested - swirl around the rights to have one’s name catapulted into philanthropic super-stardom. Billionaires jostle for the privilege of contributing to society and being publicly Read More
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
Johnson Amendment: Backdoor Repeal on the Table
During the 2016 presidential campaign, the Republican nominee fired up his evangelical supporters with a promise to repeal the Johnson Amendment, the brief phrase at the end of Internal Revenue Code section 501(c)(3) that bans any political-campaign activity. At the first National Prayer Breakfast of the new Administration, he told the gathered group that he would “get rid of and totally destroy” it. In the Read More