On March 10, 2022, the Office of the New York Attorney General, Charities Bureau, submitted comments in response to IRS Notice 2021-56 (the “Notice”). The Notice, which was published on October 21, 2021, sets forth current standards that a limited liability company (“LLC”) must satisfy to be recognized as tax-exempt under 501(c)(3) of the Internal
IRS Issues Notice Regarding Standards for 501(c)(3) Status of Limited Liability Companies
On October 21, 2021, the Internal Revenue Service (the “IRS”) published Notice 2021-56. The Notice sets forth current standards that a limited liability company (“LLC”) must satisfy to receive a determination letter recognizing it as tax-exempt pursuant to sections 501(a) and 501(c)(3) of the Internal Revenue Code (the “Code”). While the IRS has provided
ICYMI: Virtual Member Meetings Now Permanently Permitted for New York Nonprofits
On November 8, 2021, New York Governor Kathy Hochul signed legislation that permanently allows New York nonprofit corporations with members and religious corporations to hold virtual membership meetings, and nonprofit corporations to hold hybrid meetings in which some members participate virtually while others participate in person.
Prior to the passage of this legislation, Section 603
Governor Hochul Signs Bill Repealing Burdensome Filing Requirements for Nonprofits
On Friday, November 12, Governor Hochul signed S4817A, repealing certain recently enacted amendments to N.Y. Exec. Law § 172-b that (a) imposed duplicative and burdensome filing requirements on charitable organizations and (b) required public disclosure of previously confidential information about their donors.
Charities that were required to register and file an annual statement on
NASCO Publishes Survey of State Laws Governing Registration of Charities
The National Association of State Charity Officials (“NASCO”) recently published the Survey of State Laws Governing Registration of Charities as of July 2021. In general, prior to soliciting donations from the residents of any state, and, in some cases, simply by virtue of holding assets or conducting activities in a particular state, charities must register
New York Charities Bureau Suspends Schedule B Collection
Effective July 30, 2021, the New York Attorney General’s Charities Bureau has suspended its collection of Schedule B to IRS Form 990 while it reviews possible amendments to its forms, policies, or procedures that may be necessary in order to comply with the U.S. Supreme Court’s recent decision in Americans for Prosperity Foundation v. Bonta
Senate Bill Proposes Revisions to Rules Governing Donor Advised Funds and Private Foundations
On June 9, 2021, U.S. Senators Angus King (I-Maine) and Chuck Grassley (R-Iowa) introduced the Accelerating Charitable Efforts Act (the “Act”) which, if adopted, would revise current laws dictating the pace and transparency of resources flowing from private foundations and donor advised funds (“DAFs”) through a series of incentives and penalties. A joint press release
Supreme Court Holds California’s Donor Disclosure Law Facially Unconstitutional
Americans for Prosperity Foundation v. Bonta, No. 19-251, consolidated with Thomas More Law Center v. Bonta, No. 19-255. The Court’s opinion is available here.
On July 1, 2021, the Supreme Court held (6-3) that California’s requirement that charities operating or fundraising in the state file Schedule B to their IRS Form 990, which discloses
New York State Legislature Passes Bill to Repeal Burdensome Filing Requirements for Nonprofits
The New York State Assembly and Senate have passed A1141A/S4817A, a bill to repeal certain recently enacted amendments to N.Y. Exec. Law § 172-b, which, effective January 1, 2021, (a) imposed duplicative and burdensome filing requirements on 501(c)(3) nonprofits and (b) required public disclosure of previously confidential information about their donors. The
Cybersecurity and Privacy Risks for Nonprofits: Navigating the Minefield
Click here to read our Client Advisory explaining why nonprofit organizations are particularly vulnerable to cyber-attacks, describing common cyber threats and applicable privacy and data breach laws and regulations, and providing recommended best practices for nonprofits.