Nonprofit Law Podcast #45: Election Season

Election Season

Download: Nonprofit Law Podcast #45 (mp3, 10:14)

Shownotes

Intro

Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
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Election season brings out the advocacy issues for nonprofits

- Some churches are about to get in a heap of trouble...
Alliance Defense Fund is trying to take on the IRS and the tax prohibition on electioneering.
It's probably going to cost some churches, but more importantly the hubris will impact the church goers
The First Amedment is alive and well, but it doesn't simultaneously create the right to tax deductibility of donations. That's a privilege.

- Campaign finance laws were thankfully overturned, and here's why...
In 2000, Congress passed McCain-Feingold, or BCRA - it contained a well-intentioned but overbroad provision that essentially banned any broadcast advertisement that mentioned anyone running for federal office within 60 days of the November elections.
The Supreme Court overturned it because it banned all ads in those windows, including ones that are purely within free speech categories - like lobbying
When I lobbied supporters and authors of this law, I was constantly asked what kind of things could possibly come up within 60 days of an election that nonprofits and other corporations would want to weigh in on?
Well... we all just experienced it - the rescue bill was firmly within the 60 day window and without the wisdom of the Court (a phrase I do not often use) an election law would have stopped organizations from weighing in on the bill via broadcast ads.
Even supporters of BCRA were uncomfortable on this point...

Resources

Election Law Blog on the BCRA 60 day windows
Action Urged Against Politicking Pastors - The Chronicle of Philanthropy

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This podcast provides general information about legal topics but it is not a complete discussion of all legal issues that arise in relation to nonprofits nor is it a substitute for legal advice. This podcast does not create an attorney-client relationship. This is general legal information and the contributors make no warranties regarding the general legal information provided in this podcast , and disclaim liability for damages resulting from its use to the fullest extent permitted by the applicable law

Nonprofit Law Podcast #44: Streamlining

Streamlining

Download: Nonprofit Law Podcast #44 (mp3, 5:13)

Shownotes

Intro

Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
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- - This podcast is dedicated to the memory of Sean May. To learn more about Sean, please visit seanmaymemorial.com. - -


One less step in organizing a nonprofit!

Straight from the IRS:

The Internal Revenue Service and the Treasury Department today issued new regulations that will streamline the approval process for organizations seeking tax-exempt status as publicly supported charities.

The new regulations do away with the so-called advance rulings that granted public charity status for an initial five-year period but required exempt organizations to demonstrate, after the initial period, that they in fact received a substantial part of their support from public sources to receive a final determination letter.

Resources

IRS Streamlines TEO Application Process - Nonprofit Law Prof Blog
IRS Streamlines Application Process for New Tax-Exempt Organizations - IRS Press Release

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nplawcast.com

This podcast provides general information about legal topics but it is not a complete discussion of all legal issues that arise in relation to nonprofits nor is it a substitute for legal advice. This podcast does not create an attorney-client relationship. This is general legal information and the contributors make no warranties regarding the general legal information provided in this podcast , and disclaim liability for damages resulting from its use to the fullest extent permitted by the applicable law

Nonprofit Law Podcast #43: The Best IRS Publication Revamped

The Best IRS Publication Revamped

Download: Nonprofit Law Podcast #43 (mp3, 9:11)

Shownotes

Intro

Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
Email the show

Craigslist Foundation Nonprofit Bootcamp
Highly recommend this great day of learning about nonprofits, including nonprofit law
Alliance for Justice session on lobbying was excellent
NYC 2008 Podcasts should be up soon - in the meantime, check out past ones
If you're in the Bay Area, I highly encourage you to attend the west coast version on October 18, 2008 in San Mateo, CA

IRS revamps Pub 1828, the Guide to Churches and Religious Organizations

• IRS Publication 1828 (PDF) - Designed for religious organizations, but this guide is an excellent parallel resource for secular charities as well
• Inurement and Private Benefit

• • No special deals for insiders
• • No charitable dollars to individuals' "private benefit"

• Employment Tax

• • The basic ins and outs of withholding and other issues

• Payment Of Employee Business Expenses

• • How to properly reimburse

• Recordkeeping Requirements

• • Simple rules for keeping the IRS happy if you're audited

• Substantiation and Disclosure Rules for Donations

• • What you have to do when you receive tax-deductible donations

• A great index to other relevant IRS pubs (special note to my silver medal for best IRS pub: Publication 557)
• Update reflects some of the examples and guidance from Rev. Rul. 2007-41

• • Examples illustrating the application of the facts and circumstances test for campaign intervention
• • If you're a non-religious org, check out the Revenue Ruling... Pub 1828 focuses on the religious org examples

Resources

• IRS Publication 1828 (PDF)

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nplawcast.com

This podcast provides general information about legal topics but it is not a complete discussion of all legal issues that arise in relation to nonprofits nor is it a substitute for legal advice. This podcast does not create an attorney-client relationship. This is general legal information and the contributors make no warranties regarding the general legal information provided in this podcast , and disclaim liability for damages resulting from its use to the fullest extent permitted by the applicable law

Nonprofit Law Podcast #42: Double Duty

Double Duty

Download: Nonprofit Law Podcast #42 (mp3, 9:50)

Shownotes

Intro

Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
Email the show
I'll be at the Craigslist Foundation Nonprofit Bootcamp in NYC on August 16th - if you attend and see me, feel free to say hello!
Thanks to Texas Nonprofits for featuring the show on their homepage! It sparks my craving for Ironworks BBQ in Austin...

Can a staff member also serve on the board of directors?

• From a listener email: keep the suggestions coming!
• Some people are absolutists about this - it's an unworkable conflict of interest. Early in my career I was confronted with an ED who was convinced it was actually illegal.
• In some circumstances, this may be true - check your state laws regarding conflicts of interest, but also your bylaws and conflict of interest policies
• Assuming none of these things block it, serving on the board as a staff member IS possible
• It's more of an issue for small, but growing nonprofits
• Why? It's a route to compensate a person for their work - paid as a staff member, but still present as an unpaid board member. (wearing two hats)
• Pitfall: Conflict of interest - breach of duty of loyalty (for more, go back to NLP #35)
• From BoardSource: "It is probably impossible to find a board member who will never have any conflicts of interest... if these associations develop into conflicts of interest and become a major obstacle to fulfilling the duty of loyalty — one of the main legal obligations of board members — it may be necessary to re-evaluate the board member's suitability for current board service."
• If it makes sense for your organization to have a person serve as a board member, have a very strict policy regarding breach of loyalty. Best practice would be an abstention policy where the board member recuses him or herself from any votes that impact staff. Another (perhaps better) policy would be to have the board member serve in an ex officio capacity (i.e. no voting power on the board, but has full authority to be present and debate all decisions).

Resources

BoardSource
How many nonprofits compensate their board members?
Is it acceptable for a board member to have a personal relationship with a staff member?
Can conflict of interest be an obstacle to board service?
How does a nonprofit safeguard against organizational conflict of interest?

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Need more than the podcast? Tim-Mooney.com and Beyond the Podcast at nplawcast.com
nplawcast.com

This podcast provides general information about legal topics but it is not a complete discussion of all legal issues that arise in relation to nonprofits nor is it a substitute for legal advice. This podcast does not create an attorney-client relationship. This is general legal information and the contributors make no warranties regarding the general legal information provided in this podcast , and disclaim liability for damages resulting from its use to the fullest extent permitted by the applicable law

Nonprofit Law Podcast #42: Double Duty

Double Duty

Download: Nonprofit Law Podcast #42 (mp3, 9:53)

Shownotes

Intro

Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
Email the show
I'll be at the Craigslist Foundation Nonprofit Bootcamp in NYC on August 16th - if you attend and see me, feel free to say hello!
Thanks to Texas Nonprofits for featuring the show on their homepage! It sparks my craving for Ironworks BBQ in Austin...

Can a staff member also serve on the board of directors?

• From a listener email: keep the suggestions coming!
• Some people are absolutists about this - it's an unworkable conflict of interest. Early in my career I was confronted with an ED who was convinced it was actually illegal.
• In some circumstances, this may be true - check your state laws regarding conflicts of interest, but also your bylaws and conflict of interest policies
• Assuming none of these things block it, serving on the board as a staff member IS possible
• It's more of an issue for small, but growing nonprofits
• Why? It's a route to compensate a person for their work - paid as a staff member, but still present as an unpaid board member. (wearing two hats)
• Pitfall: Conflict of interest - breach of duty of loyalty (for more, go back to NLP #35)
• From BoardSource: "It is probably impossible to find a board member who will never have any conflicts of interest... if these associations develop into conflicts of interest and become a major obstacle to fulfilling the duty of loyalty — one of the main legal obligations of board members — it may be necessary to re-evaluate the board member's suitability for current board service."
• If it makes sense for your organization to have a person serve as a board member, have a very strict policy regarding breach of loyalty. Best practice would be an abstention policy where the board member recuses him or herself from any votes that impact staff. Another (perhaps better) policy would be to have the board member serve in an ex officio capacity (i.e. no voting power on the board, but has full authority to be present and debate all decisions).

Resources

BoardSource
How many nonprofits compensate their board members?
Is it acceptable for a board member to have a personal relationship with a staff member?
Can conflict of interest be an obstacle to board service?
How does a nonprofit safeguard against organizational conflict of interest?

Closing
Email me with questions and suggested topics
Sign up for the free NLP newsletter... every week get an early look at the shownotes and resources sent to you by email, plus get additional free content on the laws impacting nonprofits. Go to nplawcast.com/newsletter for more info and to sign up.
Need more than the podcast? Tim-Mooney.com and Beyond the Podcast at nplawcast.com
nplawcast.com

This podcast provides general information about legal topics but it is not a complete discussion of all legal issues that arise in relation to nonprofits nor is it a substitute for legal advice. This podcast does not create an attorney-client relationship. This is general legal information and the contributors make no warranties regarding the general legal information provided in this podcast , and disclaim liability for damages resulting from its use to the fullest extent permitted by the applicable law

Nonprofit Law Podcast #41: Responsibilities of Foundation Board Chairs

Responsibilities of Foundation Board Chairs

Download: Nonprofit Law Podcast #41 (mp3, 8:31)

Shownotes

Intro

Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
Email the show

Important responsibilities for board chairs (and other board members)

• 1. Be Faithful to Mission
• 2. Guide the Grantmaking Strategy
• 3. Map Out the Future
• 4. Stay Focused on Financial Oversight and Legal Compliance
• 5. Master the Art of Facilitating Meetings
• 6. Connect the Dots Between Committees
• 7. Build a Board That Is Strong And Engaged
• 8. Communicate with the Community
• 9. Oversee Administrative Work
• 10. Assess Performance

Resources

BoardSource, Ten Essential Responsibilities of Foundation Board Chairs
Full whitepaper

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Need more than the podcast? Tim-Mooney.com and Beyond the Podcast at nplawcast.com
nplawcast.com

This podcast provides general information about legal topics but it is not a complete discussion of all legal issues that arise in relation to nonprofits nor is it a substitute for legal advice. This podcast does not create an attorney-client relationship. This is general legal information and the contributors make no warranties regarding the general legal information provided in this podcast , and disclaim liability for damages resulting from its use to the fullest extent permitted by the applicable law

Nonprofit Law Podcast #40: Due Diligence

Due Diligence

Download: Nonprofit Law Podcast #40 (mp3, 12:05)

Shownotes

Intro

Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
Email the show

Due Diligence for Nonprofits

• Conflict of interest policy for board members, officers, and senior staff
• Whistleblower policy
• Document retention and destruction policy
• Gift acceptance policy
• Compensation policy
• Parent-subordinate consistency policy
• Contemporaneous documentation of meeting minutes of board and committees
• Compensation and Audit committees
• For grantmakers - Maintains records to substantiate the amount of the grants or assistance, the grantees’ eligibility
• for the grants or assistance, and the selection criteria used to award the grants or assistance.

Resources

American Council on Education - 501(c)(3) Due Diligence (PDF)

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Need more than the podcast? Tim-Mooney.com and Beyond the Podcast at nplawcast.com
nplawcast.com

This podcast provides general information about legal topics but it is not a complete discussion of all legal issues that arise in relation to nonprofits nor is it a substitute for legal advice. This podcast does not create an attorney-client relationship. This is general legal information and the contributors make no warranties regarding the general legal information provided in this podcast , and disclaim liability for damages resulting from its use to the fullest extent permitted by the applicable law

Nonprofit Law Podcast #39: Not Charitable Enough?

Not Charitable Enough?

Download: Nonprofit Law Podcast #39 (mp3, 7:06)

Shownotes

Intro

Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
Email the show

Commensurate in Scope ruling

• A recent private letter ruling, the IRS applied a somewhat controversial standard to reject exempt status to an organization that was a faith-based organization that also was creating tax-friendly financial plans for it's constituency.
• Remember, that it is totally feasible for a charity to engage in business activities and engage in business activities, however there are limitations out there (UBIT, etc.)
• But also remember that charitable organizations must be"exclusively" formed for charitable activities
• The commensurate in scope standard is that you have to have sufficiently large enough charitable programming relative in size to the financial resources of the organization.
• The organization in the PLR was only spending 1% (according to the IRS) on charitable activity, so this was an easy one from their perspective
• However, where does one draw the line? And how do you handle organizations such as The Nature Conservancy that have literally billions of dollars locked into land? Are they less allowed now to engage in business activities?
• This goes hand in hand with my call last episode for an (admittedly semi-overstated) Apollo Project on nonprofit regulation. We need more clarity and less ambiguity coming from the IRS

Resources

IRS Denies Tax-Exempt Status to Group That Spends Too Little Money on Charitable Programs, Chronicle of Philanthropy

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Need more than the podcast? Tim-Mooney.com and Beyond the Podcast at nplawcast.com
nplawcast.com

This podcast provides general information about legal topics but it is not a complete discussion of all legal issues that arise in relation to nonprofits nor is it a substitute for legal advice. This podcast does not create an attorney-client relationship. This is general legal information and the contributors make no warranties regarding the general legal information provided in this podcast , and disclaim liability for damages resulting from its use to the fullest extent permitted by the applicable law

Nonprofit Law Podcast #38: An Apollo Project for Nonprofits

An Apollo Project for Nonprofits

Download: Nonprofit Law Podcast #38 (mp3, 6:54)

Shownotes

Intro

Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
Email the show

More clarity, not less

From BNA:

'Inferential' Intervention Trend

[Marcus Owen's] firm has seen the emergence of differing interpretations of the facts-and-circumstances standard that IRS applies to all political activity referrals, he said. Some offices have a more
liberal interpretation where only allegations of explicit statements of campaign intervention lead to investigations, while other offices are more willing to look at allegations of implicit or indirect
campaign intervention, he said.

What he called a determination of "inferential" intervention is also emerging from IRS. This he described as "inferences derived from discussions of candidate's positions on an issue ... but somewhere else in the organization, another Web site or something off a Web site could carry with it a flavor of the organization's position on the same issue, and IRS could conflate those two and come to the conclusion that there was inferential intervention."

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nplawcast.com

This podcast provides general information about legal topics but it is not a complete discussion of all legal issues that arise in relation to nonprofits nor is it a substitute for legal advice. This podcast does not create an attorney-client relationship. This is general legal information and the contributors make no warranties regarding the general legal information provided in this podcast , and disclaim liability for damages resulting from its use to the fullest extent permitted by the applicable law

Nonprofit Law Podcast #37: Decoding the Nonprofit Form

Decoding the Nonprofit Form

Download: Nonprofit Law Podcast #37 (mp3, 7:54)

Shownotes

Intro

Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
Email the show

How you can pick up clues on the type of nonprofit you hear about in the news

This show is all about figuring out the type of nonprofit
A recent article on David Brock's new organizational involvement spurred this:
"Brock wouldn't detail Progressive Media USA's strategy, and stressed that - as required by his group's nonprofit status - the spending would be on a mix of direct electoral politics and issue ads with no direct connection to the race." (Politico/CBSNews.com)
What type of nonprofit?
501(c)(3)? Check out their website... do they allow for charitable deductions for donations? Does the solicitation page specifically say contributions are NOT deductible?
Deductible? 501(c)(3)... likely a public charity
If not... keep looking for more clues!
Does the organization engage in ALL election activity supporting or opposing a candidate?
Probably a 527
Does it do mixed advocacy - some supporting or opposing a candidate and some not?
Probably a 501(c)(4)... Progressive Media USA might event have both a (c)(4) and an affiliated 527, so it's not always as easy to pick out everything from one source!

Little clues here in there can lead you find out without relying on the cheat (Guidestar or a personal visit to the offices!)

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nplawcast.com

This podcast provides general information about legal topics but it is not a complete discussion of all legal issues that arise in relation to nonprofits nor is it a substitute for legal advice. This podcast does not create an attorney-client relationship. This is general legal information and the contributors make no warranties regarding the general legal information provided in this podcast , and disclaim liability for damages resulting from its use to the fullest extent permitted by the applicable law

Nonprofit Law Podcast #36: Top 6 resources

Top 6 resources

Download: Nonprofit Law Podcast #36 (mp3, 8:39)

Shownotes

Intro

Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
Email the show

My Top 6 Resources
This week is all "resource time" here on the podcast - my top 6 resources - 3 sites in two categories

Operational information - excellent resources for how to get things done right
Guidestar
CraigsList Foundation
BoardSource

Infrastructure organizations - operational guidance plus representation of your interests
Alliance for Justice - Nonprofit Advocacy Project and Foundation Advocacy Initiative
National Council of Nonprofit Associations (NCNA) and your state nonprofit association
Independent Sector

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nplawcast.com

This podcast provides general information about legal topics but it is not a complete discussion of all legal issues that arise in relation to nonprofits nor is it a substitute for legal advice. This podcast does not create an attorney-client relationship. This is general legal information and the contributors make no warranties regarding the general legal information provided in this podcast , and disclaim liability for damages resulting from its use to the fullest extent permitted by the applicable law

Nonprofit Law Podcast #35: Joining a Nonprofit Board

Joining a Nonprofit Board

Download: Nonprofit Law Podcast #35 (mp3, 9:42)

Shownotes

Intro

Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
Email the show

News & Notes
- From the Nonprofit Law Blog (tim-mooney.com/lawblog)
- Senate deepens financial review of television ministries - NBC is reporting that the Senate Finance committee is renewing its demands for certain churches to provide detailed financial information. The letters sent today are a follow-up to letters sent last year to a virtual who's who of large televangelist ministries, including Benny Hinn and Kenneth Copeland.
- IRS reaches out to charities to aid in economic stimulus - The IRS is encouraging various partners and stakeholders such as charities, churches and governmental organizations to assist in efforts to reach out to those Americans who may be eligible for the 2008 economic stimulus payment but who normally have no requirement to file a tax return. People who receive certain Social Security, Veterans Affairs, Railroad Retirement or wages from earned income or combat pay may be eligible and not know it.

Joining a nonprofit board
- Duties of care, loyalty, and obedience
- duty of care is the duty to pay attention to the organization—to monitor its activities, see that its mission is being accomplished, and guard its financial resources.
- duty of loyalty is the duty to avoid conflicts of interest
- In cases of potential conflict of interest, directors must act to preserve and enhance public trust in the organization by putting the interests of the organization ahead of all other business and personal interests.
- Watch out for self dealing!
- duty of obedience is to carry out the purposes of the organization and to comply with the law.
- Before you say yes and join the board, do your homework
- Know the bylaws
- Know the expectations (financial goals for board members, etc.?)
- Know how you protect the organization (insurance coverage sufficient? etc.)

Resources
Guidestar - Joining a Nonprofit Board in a Post-Enron World
MN Council of Nonprofits - Roles and Responsibilities of the Nonprofit Board
BoardSource - The Nonprofit Board Answer Book

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nplawcast.com

This podcast provides general information about legal topics but it is not a complete discussion of all legal issues that arise in relation to nonprofits nor is it a substitute for legal advice. This podcast does not create an attorney-client relationship. This is general legal information and the contributors make no warranties regarding the general legal information provided in this podcast , and disclaim liability for damages resulting from its use to the fullest extent permitted by the applicable law

Nonprofit Law Podcast #34: What triggers an IRS audit?

What triggers an IRS audit?
Download: Nonprofit Law Podcast #34 (mp3, 6:03)

Shownotes

Intro

Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
Email the show

News & Notes
- Nonprofits and Elections: Balancing Personal Versus Organizational Activity on-demand video screencast is available now at nplawcast.com/beyondthepodcast.
- Newsletter subscribers... next week I'll be releasing a free screencast on filling out the Form 990-N. If you're not a subscriber, sign up at nplawcast.com/newsletter.

What triggers an audit?
- To determine which organizations should be targeted, experienced specialists analyze information from Forms 990 and other sources.
- This analysis will usually result in the selection of a group of returns for examination or compliance check.
- EO also reviews media reports and receives complaints from the general public and Congress about potential non-compliance by exempt organizations.
- After confirming the information, and when appropriate, these organizations may be selected for examination or to receive a compliance check. For details on how EO handles complaints about exempt organizations, see Fact Sheet 2008-13. (It goes to the Dallas field office, because Texans know how to investigate nonprofits, presumably?)
- Regardless of the process used to select returns, EO does not presume that an organization is violating the tax laws before it begins the examination or sends a compliance check letter.

Resources
IRS: FS 2008-14

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Need more than the podcast? Tim-Mooney.com and Beyond the Podcast at nplawcast.com
nplawcast.com

This podcast provides general information about legal topics but it is not a complete discussion of all legal issues that arise in relation to nonprofits nor is it a substitute for legal advice. This podcast does not create an attorney-client relationship. This is general legal information and the contributors make no warranties regarding the general legal information provided in this podcast , and disclaim liability for damages resulting from its use to the fullest extent permitted by the applicable law

Nonprofit Law Podcast #33: What counts as lobbying?

What counts as lobbying?


Download: Nonprofit Law Podcast #33 (mp3, 7:32)

Shownotes

Intro

Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
Email the show

News & Notes
- Recommended resource if none of the lobbying talk makes sense: Alliance for Justice's Worry-Free Lobbying for Nonprofits (PDF).
- Nonprofits and Elections: Balancing Personal Versus Organizational Activity on-demand video screencast is available now at nplawcast.com/beyondthepodcast.

What counts as lobbying for a public charity?

- Two sets of rules: one has no definitions, the other we'll cover ("501(h) election")
- Do yourself a favor and check to see if your organization has made the 501(h) election - if not, strongly consider making it even if you engage in little or no lobbying activity
- Direct Lobbying:
- Communication
- With a legislator
- Expressing a view on specific legislation
- Grassroots Lobbying:
- Communication
- With the general public
- Expressing a view on specific legislation
- With a call to action
- A great deal of public advocacy is NOT lobbying, even though it is compelling, direct and (sometimes) rather pointed and critical
- Many visits with legislators and their staff are NOT lobbying because the discussion centers on broad issues, not specific legislation
- In doubt? Run your activity through the elements!

Resources
MNCN: Nonprofit Lobbying and the Law
CLPI: Lobbying and the Law
AFJ: State lobbying law resources and Worry-Free Lobbying for Nonprofits

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Need more than the podcast? Tim-Mooney.com and Beyond the Podcast at nplawcast.com
nplawcast.com

This podcast provides general information about legal topics but it is not a complete discussion of all legal issues that arise in relation to nonprofits nor is it a substitute for legal advice. This podcast does not create an attorney-client relationship. This is general legal information and the contributors make no warranties regarding the general legal information provided in this podcast , and disclaim liability for damages resulting from its use to the fullest extent permitted by the applicable law

Nonprofit Law Podcast #32: Lobbying basics

Lobbying basics


Download: Nonprofit Law Podcast #32 (mp3, 9:48)

Shownotes

Intro

Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
Email the show

News & Notes
- Recommended blog: a great source of nonprofit news is The Chronicle of Philanthropy's Philanthropy Today. The Chronicle is a subscription service (and well worth it) but this is a free source of news from the Chronicle. I have it in my Google Reader so I get the stories delivered as soon as they are posted.
- Nonprofits and Elections: Balancing Personal Versus Organizational Activity on-demand video screencast is available now at nplawcast.com/beyondthepodcast.

The "L" word

- Yes, nonprofits can lobby
- Yes, there are restrictions ranging from the substantial (private foundations) to the minimal (registration requirements for all)
- Lobbying has a legal definition - there are many ways an organization can advocate (sometimes strongly) without it counting as lobbying
- The basic rundown
- Private foundations are essentially prohibited from lobbying, BUT there are many ways to visit legislators and educate (tax law)
- Public charities are limited in the amount of lobbying they can engage in, but the amount allowed is surprisingly high for some (tax law)
- Other 501(c)s are not limited at all in the amount of lobbying they can engage in, but it must fit their exempt purpose (tax law)
- 527s rarely lobby because it is unusual that lobbying would support or oppose a candidate (their exempt purpose)
- Federal law and most state laws require lobbyist registration for all (varies wildly - check your state)
- Where things get tricky
- Ballot measures - intersection with election laws
- Local bodies of government - sometimes unclear whether there is legislation or a legislative body
- Funder restrictions - the biggest area - a public charity may have a large legal capacity to lobby, but its source of funding may have contractual restrictions on lobbying so the nonprofit's practical capacity is much lower

Resources
MNCN: Nonprofit Lobbying and the Law
CLPI: Lobbying and the Law
AFJ: State lobbying law resources

Closing
Email me with questions and suggested topics
Sign up for the free NLP newsletter... every week get the shownotes and resources sent to you by email, plus get additional free content on the laws impacting nonprofits. Go to nplawcast.com/newsletter for more info and to sign up.
Need more than the podcast? Tim-Mooney.com and Beyond the Podcast at nplawcast.com
nplawcast.com

This podcast provides general information about legal topics but it is not a complete discussion of all legal issues that arise in relation to nonprofits nor is it a substitute for legal advice. This podcast does not create an attorney-client relationship. This is general legal information and the contributors make no warranties regarding the general legal information provided in this podcast , and disclaim liability for damages resulting from its use to the fullest extent permitted by the applicable law

Nonprofit Law Podcast #31: Do we have to file a 990?

Do we have to file a 990?

Download: Nonprofit Law Podcast #31 (mp3, 6:26)

Shownotes

Intro

Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
Email the show

News & Notes
- Nonprofits and Elections: Balancing Personal Versus Organizational Activity on-demand video screencast is available now at nplawcast.com/beyondthepodcast.

Do all nonprofits have to file Form 990?

- No, but most do. The default is that your nonprofit will be filing a 990 about 5 months after the end of its tax year
- Who doesn't file a Form 990?
- Small organizations
- Gross receipts of less than $100,000 and assets of less than $250,000 at the end of the year (Form 990-EZ)
- Gross receipts normally less than $25,000 (no filing necessary for FY 2007)
- For FY 2008 (next year's filing) these organizations may be required to file an annual electronic notice - e-Postcard
- Churches and church-affiliated organizations (no filing necessary)
- Private foundations (Form 990-PF)
- Employee benefit trusts (Form 5500)
- Black lung benefit trusts (Form 990-BL)
- Special partnerships of religious and apostolic organizations (Form 1065).

Resources
IRS: EO Reporting Requirements - Annual Return Filing Exceptions

Closing
Email me with questions and suggested topics
Sign up for the free NLP newsletter... every week get the shownotes and resources sent to you by email, plus get additional free content on the laws impacting nonprofits. Go to nplawcast.com/newsletter for more info and to sign up.
Need more than the podcast? Tim-Mooney.com and Beyond the Podcast at nplawcast.com
nplawcast.com

This podcast provides general information about legal topics but it is not a complete discussion of all legal issues that arise in relation to nonprofits nor is it a substitute for legal advice. This podcast does not create an attorney-client relationship. This is general legal information and the contributors make no warranties regarding the general legal information provided in this podcast , and disclaim liability for damages resulting from its use to the fullest extent permitted by the applicable law

Nonprofit Law Podcast #30: Can a candidate use our space?

Can a candidate use our space?


Download: Nonprofit Law Podcast #30 (mp3, 7:18)

Shownotes

Intro

Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
Email the show

News & Notes
- What's the IRS up to this year? According to its 2008 guidelines (PDF), the IRS is going to be focusing on (1) the redesign of Form 990, and (2) efforts to reign in abusive donation transactions particularly over-valuation of non-cash contributions. More at Guidestar.org.
- Nonprofits and Elections: Balancing Personal Versus Organizational Activity on-demand video screencast is available now as special preview for newsletter subscribers and will be available February 10th for the rest of the listenership. More on newsletter signup at the end of the show.

Can a candidate use our space?

- 501(c)(4)s, etc.
- Yes, and you can limit it in a partisan way
- If limited in a partisan manner, this will count toward your limits on partisan activity under tax law
- Use must be incidental (about an hour per week or 4 hours per month) or it might be considered a contribution unless candidate reimburses (federal candidates - state law varies widely)
- 501(c)(3)s
- Must be strictly nonpartisan (nonpartisan debates, etc.) OR
- The use is part of a community offering (church rec room or community room) that is regularly made available for noncommercial purposes, without regard to political affiliation
- You can charge fees

Resources
FEC: Citizens' Guide
IRS: CPE Guide, Election Year Issues (PDF - p383)

Closing
Email me with questions and suggested topics
Sign up for the free NLP newsletter... every week get the shownotes and resources sent to you by email, plus get additional free content on the laws impacting nonprofits. Go to nplawcast.com/newsletter for more info and to sign up.
Need more than the podcast? Tim-Mooney.com and Beyond the Podcast at nplawcast.com
nplawcast.com

This podcast provides general information about legal topics but it is not a complete discussion of all legal issues that arise in relation to nonprofits nor is it a substitute for legal advice. This podcast does not create an attorney-client relationship. This is general legal information and the contributors make no warranties regarding the general legal information provided in this podcast , and disclaim liability for damages resulting from its use to the fullest extent permitted by the applicable law.

Nonprofit Law Podcast #29: Unrelated Business Income

Unrelated Business Income


Download: Nonprofit Law Podcast #29 (mp3, 9:41)

Shownotes

Intro

Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
Email the show

News & Notes
Welcome Blue Oregon readers
Sign up for the free NLP newsletter... every week get the shownotes and resources sent to you by email, plus get additional free content on the laws impacting nonprofits. Go to nplawcast.com/newsletter for more info and to sign up.
Nonprofits and New Media: Legal Rules for using the Internet, Podcasts and Social Networks is available.
Next Beyond the Podcast offering: Nonprofits and Elections: Balancing Personal Activity versus Organizational Activity. Available on January 31st for newsletter subscribers who will receive a discount through February 10th when it will be released to the rest of the listenership.
Nonprofits and New Media: Legal Rules for using the Internet, Podcasts and Social Networks is available.
Check out the poll at the bottom of the Beyond the Podcast page at nplawcast.com and give your input on what topics you'd like covered in the some of the next BTP offerings.

Unrelated Business Income
- Listener suggestion: issues regarding the parking garage run by a nonprofit - is it subject to taxation?
- Any income an organization receives from a regular trade or business that is not substantially related to the organization's exempt purposes.
- trade or business can be a small part of overall work (i.e. NYU and Mueller Spaghetti)
- regularly carried on: has a frequency (not a one-shot)
- substantially related - if the sales don't somehow advance the exempt purposes of the organization
- IRS uses facts and circumstances analysis
- Affects most 501(c) organizations
- Subjects them to a tax - "UBIT"
- New rule: organizations have to make their UBIT returns (Form 990T) available to the public!
- Examples
- membership list sales: UBIT
- pet boarding by an anti-cruelty org: UBIT
- art museum gift cards with art: not UBI
- newsletters/magazines: can go either way (depends on whether the articles cover the exempt purpose)

Resources
IRS: Publication 598 (PDF - newly updated)
IRS: UBI defined
BoardSource: What is UBIT?

Closing

Email me with questions and suggested topics
Need more than the podcast? Tim-Mooney.com and Beyond the Podcast at nplawcast.com
nplawcast.com

This podcast provides general information about legal topics but it is not a complete discussion of all legal issues that arise in relation to nonprofits nor is it a substitute for legal advice. This podcast does not create an attorney-client relationship. This is general legal information and the contributors make no warranties regarding the general legal information provided in this podcast , and disclaim liability for damages resulting from its use to the fullest extent permitted by the applicable law

Nonprofit Law Podcast #28: Nonprofit Mail Rates

Nonprofit Mail Rates


Download: Nonprofit Law Podcast #28 (mp3, 8:48)

Shownotes

Intro

Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
Email the show

News & Notes
Sign up for the free NLP newsletter... every week get the shownotes and resources sent to you by email, plus get additional free content on the laws impacting nonprofits. Go to nplawcast.com/newsletter for more info and to sign up.
Nonprofits and New Media: Legal Rules for using the Internet, Podcasts and Social Networks is available. Early reviews are great, and I'm glad it's been well-recieved. Check out the poll at the bottom of the Beyond the Podcast page at nplawcast.com and give your input on what topics you'd like covered in the some of the next BTP offerings. I'll announce the next BTP topic next show.

Nonprofit Mailing Rates
- Why would you want it? Cheap mailings - 40% of standard mail rates
- Who qualifies? Mainly (c)(3)s and some very limited political committees (i.e. official Dem and GOP committees) - but qualified orgs do not have to be 501(c)(3)s
- How to apply -

PS Form 3624

,

Application to Mail at Nonprofit Standard Rate

- Determination letter, supporting docs of activity

- Financial statements, etc.
- Not an insignificant form
- Congrats - you're approved... now what?
- What can be mailed is strictly controlled
- Off limits
- Certain advertisements
- Mailing other org's mail (that includes affiliated (c)(4)s and 527s!)
- Mailing without identifying marks
- Make sure you mail at least once every 2 years (200 pieces or 50 lbs)
- Story time... the Portland Post Office vs. a suburban Minneapolis Post Office

Resources
USPS: NetPost Mailing Online - Nonprofit FAQs
USPS:

PS Form 3624

,

Application to Mail at Nonprofit Standard Rate

(PDF)

Closing

Email me with questions and suggested topics
Need more than the podcast? Tim-Mooney.com and Beyond the Podcast at nplawcast.com
nplawcast.com

This podcast provides general information about legal topics but it is not a complete discussion of all legal issues that arise in relation to nonprofits nor is it a substitute for legal advice. This podcast does not create an attorney-client relationship. This is general legal information and the contributors make no warranties regarding the general legal information provided in this podcast , and disclaim liability for damages resulting from its use to the fullest extent permitted by the applicable law.

Nonprofit Law Podcast #27: Reporting changes to the IRS

Reporting changes to the IRS


Download: Nonprofit Law Podcast #27 (mp3, 6:19)

Shownotes

Intro

Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
Email the show

News & Notes
Sign up for the free NLP newsletter... every week get the shownotes and resources sent to you by email, plus get additional free content on the laws impacting nonprofits. Go to nplawcast.com/newsletter for more info and to sign up.
Nonprofits and New Media: Legal Rules for using the Internet, Podcasts and Social Networks is available. Early reviews are great, and I'm glad it's been well-recieved. Check out the poll at the bottom of the Beyond the Podcast page at nplawcast.com and give your input on what topics you'd like covered in the some of the next BTP offerings.

New Year, New Changes?
A lot of nonprofits consider making changes to their organization - new offerings, new services, new board members... even new addresses
How do you handle letting the IRS know about these things?
Form 990 - your annual return generally contains places in the form to include any of the ordinary changes that happen with nonprofits
new address, new board members, new officers, etc.
What about bigger changes
In some instances, bigger changes require more information to supplement the 990 - for instance, if your nonprofit reincorporates, you would need to attach the new articles of incorporation to the Form 990
What about super-big changes?
If your nonprofit is changing its services or mission dramatically, it might require additional action
Private Letter Ruling - a lengthy process with the IRS asking for specific advice on a specific matter. Get a lawyer!
Another 1023 - sometimes the changes are so big that you might as well be a new organization (i.e. a totally different exempt purpose than the one you applied for recognition in the first place)
This would be due to big changes... going from private foundation to public charity, or nonrelgious organization to a religious one that is exempt from filing 990s, etc.

Resources
Exempt Organizations - Reporting Changes to IRS
Private Letter Rulings and Determination Letters

Closing

Email me with questions and suggested topics
Need more than the podcast? Tim-Mooney.com and Beyond the Podcast at nplawcast.com
nplawcast.com

This podcast provides general information about legal topics but it is not a complete discussion of all legal issues that arise in relation to nonprofits nor is it a substitute for legal advice. This podcast does not create an attorney-client relationship. This is general legal information and the contributors make no warranties regarding the general legal information provided in this podcast , and disclaim liability for damages resulting from its use to the fullest extent permitted by the applicable law.