Lots of great nonprofit resources

This month's edition of Harmon Curran's Navigator is full of great information:

IRS Releases Variety of New Guidance for Exempt Organizations

IRS Issues New Guidance on Valuing Donated Property

IRS Publishes FAQ Sheet for E-Postcard Filing

IRS and Independent Sector Issue Good Governance Guidelines for Charitable Organizations

Check it out at harmoncurran.com/navigator.

Nonpartisan candidate questionnaire

I've spoken about some of the best practices on nonpartisan candidate questionnaires by 501(c)(3)s in Nonprofit Law Podcast #16. For a little real-life example on how to craft a cover letter to candidates laying out the ground rules, check out the letter to presidential candidates by Midwest Democracy Network. Specifically:

First, we intend to communicate your answers fully, accurately, and without
edits, including spelling and grammar errors. All candidate responses will be released at one time—on October 31.

This is a good way of demonstrating that there is no filter of bias by the organization... what the candidates write down (including typos) end up the report.

Second, the Network will not publicly critique, comment on, or editorialize about your or any other candidate’s answers; the job of evaluating, comparing, contrasting and judging responses to the questionnaire will be left entirely to individual voters, readers, journalists and opposing candidates.

This is critically important... some 501(c)(3)s will continue advocacy simultaneously with their publication of these nonpartisan voter guides, and that can become problematic from a tax law perspective (remember, no partisan electioneering allowed for 501(c)(3)s).

Third, if you fail to submit a completed questionnaire by October 15 or leave certain questions unanswered, those omissions will be noted in a neutral and non-judgmental way in the Network’s published and web-based reports and press materials.

This paragraph gives notice that the results will be published even if some candidates don't respond. This was important because only 2 of the primary candidates responded.

And finally, we ask that you respect the word limits specified in the questionnaire’s “comment” sections as determined by the word count feature of your computer software.

Some candidates will write a treatise if you don't lay down some rules. This is a good idea.

Check out the questionnaire and responses over at Midwest Democracy Network.

More on Oral Roberts University

ORU President Richard Roberts resigned yesterday following the continuing scrutiny caused by some very serious allegations that, if true, could spell serious tax problems for the nonprofit university. I've posted before about some of the issues... more to come to be sure.

New 990 on the way

I've posted over the past few months about the soon-to-come new Form 990 that most nonprofits will have to use starting in 2009. The Chronicle of Philanthropy reports that the IRS is implementing changes from the comments filed earlier this year from the nonprofit community. The final version should be available as early as December.

More on FEC ad rules

The Washington Post blog, The Trail, has a nice roundup of voices on the new FEC advertising rules. Save it for halftime of the Lions game tomorrow... or not. Happy Thanksgiving!

UPDATE... more here from The Hill.

UPDATE from the election law listserve, an interesting observation from Brian Svoboda:

The FEC is simply setting itself up for the same dialectic that has long characterized its enforcement process: (1) agency gives example of what is prohibited; (2) sponsor crafts ad to hew away from the prohibited example; (3) reform advocates deride supposed toothlessness of agency prohibition; (4) agency responds by targeting sponsors; thus prompting (5) continued reform community derision, and howls from the regulated about the lack of fair notice.

Sounds about how it will go.

Seen But Not Heard: Strengthening Nonprofit Advocacy

Gary Bass and Kay Guinane of OMB Watch co-authored Seen But Not Heard: Strengthening Nonprofit Advocacy along with other OMB Watch staffers... the book's topic was the subject of Jeffrey Birnbaum's column in yesterday's Washington Post. I've known Gary and Kay for several years, dating back to my AFJ days. I'll definitely be picking up a copy...

FEC weighs in on WRTL with rulemaking

The FEC today voted on a rule to harmonize federal law with the ruling in Wisconsin Right to Life... broadcast ads mentioning federal candidates near set times prior to elections can only be regulated, under the ruling, if there is "no reasonable interpretation other than as an appeal to vote for or against a specific candidate."

So, this leaves the door wide open for more issue ads during elections. Bob Bauer has a good post on the matter... I tend to side with his point of view on this issue.

Nonprofit Law Podcast #23: Should we file an amended tax return?

Nonprofit Law Podcast #23 goes over a few scenarios where your nonprofit may want to file an amended tax return. Check out the shownotes and resources at nplawcast.com!

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New lobbying disclosure forms online

This does not apply to the vast majority of nonprofits, but for those readers that engage in a fair amount of lobbying of members of Congress, you'll want to read on. AFJ reports:

The U.S. House of Representatives and Senate recently announced new federal lobbying disclosure report filing procedures that will allow lobbyists to make one single electronic filing.

In September of this year the President signed into law the Open Government Act of 2007, which amends the federal Lobbying Disclosure Act of 1995 (see our analysis of the lobbying and ethics changes). Previously, lobbyists had to file separately with both the Senate and House and follow their separate requirements. The Secretary and the Clerk have streamlined the requirements and as a result lobbyists may file their forms at a single electronic location.

The new forms that enable simultaneous filing with the Clerk and Secretary will be available beginning December 10, 2007. These forms may be used for the 2007 Year End filing period and may be downloaded from the House or Senate websites. The Secretary and Clerk will accept previously issued registration and reporting forms until March 15, 2008, after which you must use the new forms and file electronically.

So, if you're a covered nonprofit, get ready and download those reporting forms!

More on 501(c)(4) donations

The Chronicle of Philanthropy picked up on the LA Times article I posted the other day on 501(c)(4)s getting more attention from donors who wish to have more impact (anonymously) with their donations. It will be interesting to see if the reform community turns their attention to 501(c)(4)s if there is perceived abuse.

IRS gearing up for new Form 990

Check out today's New York Times article on how the 990-N will "weed out deadwood" charities"...

Nonprofits and elections

Great article in the L.A. Times today on the impacts 501(c)(4)s and 527s may have on upcoming elections... the key is the lack of donor disclosure. There are many good reasons for protecting the anonymity of donors to nonprofits, but there are equally good reasons to require disclosure for political activities. There will likely come a time when we see some attempt to strike the balance. It would not be a good idea, in my opinion, to require broad donor disclosure on nonprofits as a class simply because they can be used in electoral contexts. More to come on this for sure.

Nonprofit Law Podcast #22: Help! I lost my 501(c)(3) letter!

Nonprofit Law Podcast #22 answers the age-old question: how to replace your missing determination letter. Check out the shownotes and resources at nplawcast.com!

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Hasen on Colbert and corporate cheese

Stephen Colbert may be out of the running in South Carolina, but the impact of his attempted run still has people in election law circles talking. Rick Hasen weighs in over at FindLaw with Stephen Colbert's "Hail to the Cheese" Presidential Candidacy: Why the Comedian's Campaign Raises Serious Questions about the Role of Corporate Money In Elections. Remember that most nonprofits are corporations subject to federal election law, so this exercise in humor actually has some application!

Gift tax and 501(c)(4)s

Someone on the election law listserve asked a question that pops up all the time for 501(c)(4)s... do major donors to (c)(4)s have to pay gift tax? Answer... because 501(c)(4)s aren't exempt from gift tax (like 501(c)(3)s and 527s) contributions over $12,000 are subject to the tax. Now, as Beth Kingsley stated in her response on the listserve, the IRS isn't exactly pulling out all the stops to collect this tax, so practically speaking it goes largely uncollected. A big issue? Not really... only if you have a person giving more than $12k!

Nonprofit Law Podcast #21: Nonprofit Insurance

Nonprofit Law Podcast #21 answers a listener question on D&O insurance and some of the broader issues related to nonprofits and insurance coverage. Check out the shownotes and resources at nplawcast.com!

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IRS seeks guidance from nonprofits

The Chronicle of Philanthropy reports:

The Internal Revenue Service is looking for eight volunteers to fill vacancies on an advisory committee that focuses on matters affecting nonprofit groups.

The committee — called the Advisory Committee on Tax Exempt and Government Entities — offers recommendations and reactions on administrative policy.