AUGUST 2018

STATE LAW

Kentucky

A television investigation found frustration and anger among many of the state’s nonprofit organizations. Under a new law, the government is taxing ticket sales to galas and fundraisers as well as taxing sponsorships which reduce the income to charitable organizations. The protest against the imposition of these taxes on charitable fundraising activity is being led by the Kentucky Nonprofit Network.

Source: http://www.wkyt.com/content/news/How-did-Kentucky-nonprofits-end-up-taxed-490192831.html

Massachusetts

There is increasing pressure on nonprofits located in Boston to “pay their fair share” under the city’s “Payment in Lieu of Taxes” (PILOT) program. According to an article in the Boston Herald, the PILOT action group says their new report shows that the 49 largest institutions in the city have failed to pay over $77 million in promised payments.

Commentary: Boston is unique in many ways, including the fact that very valuable real estate is occupied by institutions of higher education, some of whom are particularly well funded.

Source: http://www.bostonherald.com/news/local_politics/2018/08/boston_board_pillories_nonprofits_for_not_paying_their_share

Oklahoma

The Attorney General announced a 20-count felony indictment for charity fraud on a Tulsa man who allegedly raised money on behalf of a sound-alike veterans’ organization for his own purposes.

Commentary: This was one of the many actions filed by virtually every state in the Union in conjunction with the joint crackdown on veteran fundraising by the Federal Trade Commission in all 50 states.

Source: http://www.oag.ok.gov/attorney-general-hunter-tulsa-vfw-commander-aarp-announce-20-count-felony-indictment-on-tulsa-man-for-charity-fraud-involving-a-veterans-org

North Carolina

An investigation by the Charlotte Observer found that more than 50 nonprofit executives and employees enjoy pay packages of over $1 million. According to the published report, most of the top earners work for hospitals or hospital chains. However, a number also work for colleges and universities. The report lists college sports conference executives and numerous football and basketball coaches all who earn more than $1,000,000 dollars per year.

Source: https://www.charlotteobserver.com/news/local/article213377394.html

South Carolina

A new South Carolina law prohibits a solicitor from “display[ing] a South Carolina area code on the recipient’s caller identification system unless the person making, placing, or initiating the call or text message maintains a physical presence in the State.” Solicitors cannot use spoofing with the intent to defraud, harass, cause harm, or wrongfully obtain anything of value from the receiving party.

Source: https://www.scstatehouse.gov/sess122_2017-2018/bills/4628.htm

OTHER MATTERS  

Congress

The Dallas News reports that Senator Ted Cruz has introduced a bill to repeal a part of the GOP tax overhaul that hit churches and other nonprofits with an excise tax on certain benefits provided to employees, including public transportation and parking. The 21% excise tax that was included in the tax reform bill was not widely known or reported until well after passage.

Source: https://www.dallasnews.com/news/texas-politics/2018/08/01/ted-cruz-introduces-bill-repeal-part-gop-tax-overhaul-hit-churches-nonprofits-new-levy

IRS Announcement

The IRS has announced that tax-exempt organizations filing an IRS Form 990 or Form 990EZ tax return, other than 501(c)(3) charitable organizations, will no longer be required to file a Schedule B listing their significant donors.

Source: https://www.irs.gov/charities-non-profits/public-disclosure-and-availability-of-exempt-organizations-returns-and-applications-contributors-identities-not-subject-to-disclosure