You are here

Lead Stories

Lead Stories

Build Back Better Bill Provides Help For Nonprofit Journalism, Endowments

Tax credits available to support local journalism, universities could eliminate tax on investment income
The Build Back Better Act recently passed by the House of Representatives and sent to the Senate contains innumerable highly publicized programs that will provide billions of dollars in grants for nonprofit organizations. But it included two unheralded provisions that would specifically aid nonprofit local journalism and allow colleges and universities to reduce or eliminate the special excise tax on endowment earnings. Section 138517 of the Bill creates a new payroll tax credit for compensation of local news journalists employed by an “eligible local newspaper publisher,” part of an agenda being pushed by supporters of nonprofit news outlets. Because the credit is applied against...

Named Beneficiary Has Standing To Contest Actions of Trustee

Pa. Supreme Court reverses ruling that denied standing when beneficiary’s payment would not be affected
The Pennsylvania Supreme Court has reversed an appellate court decision and has held that a named beneficiary of a trust has standing to contest the actions of a trustee even where a decision would not affect the beneficiary’s annual payout from the trust. It has held that a violation of the trustee’s duty which affects the beneficiary’s equitable interest in the trust property makes relief available that is equitable in nature, even where the beneficiary cannot demonstrate that she suffered, or will suffer, a monetary loss. Augustus Ashton died in October 1951. In his will, he created a trust to provide fixed annuities to eight family members, with the remainder for certain charitable...

California to Regulate ‘Charitable Fundraising Platforms’

Beginning 2023, state will require registration before enabling solicitation of charitable contributions
After years of uncertainty about the registration requirements for GoFundMe pages, Facebook solicitations, or other internet-based crowd-fundraising methods, California has passed amendments to its charitable solicitation registration act to cover what it calls “charitable fundraising platforms” and “platform charities” and to bring them under regulation by the state Attorney General. As the first of its kind in the nation, even though many of the details are still to be worked out, the new California law is likely to set standards for other states to follow in getting a grip on these types of fundraising that regulators have not known how to deal with before. Like charitable organizations...

Court enjoins provisions regulating professional solicitor

A federal District Court in Connecticut has enjoined the state from enforcing some of the charitable solicitation act provisions regulating professional solicitors pending trial on the constitutionality of the rules. The Court has limited the scope of a preliminary injunction solely to enforcement against the plaintiff in the case, but the ultimate decision could impact the regulation of solicitors generally under state charitable solicitation registration acts. Plaintiff Adam Kissel claimed that the state’s charitable solicitation registration law violates his First Amendment right to engage in speech involving charitable fundraising. He claimed that the state’s definition of “solicitation...

Smithsonian Gets Cy Pres Power To Modify Display Requirement for Collection

Court allows Institution to display statues online instead of physically in museum facilities
When the widow of British explorer and artist Herbert Ward gave the family collection of 2241 ethnographic objects, including 19 bronze sculptures of Congolese people, to the Smithsonian Institution in 1920, she included a requirement in the agreement that the collection be kept together and that the sculptures be displayed in a room or “reasonably conspicuous part” of the building open to the public “at all times.” In 1960, the Smithsonian decided it was impractical to keep the collection together on permanent display and obtained court permission in 1961 to remove some of the items from permanent display and separate the sculptures from the rest of the collection. In the late 1980s, the...

Amazon Smiles May Reject Alleged Hate Group

Court says religious group did not prove defamation or discrimination on the basis of religion
An alleged hate group may be rejected from the Amazon Smiles donation to charity program, the 11 th Circuit Court of Appeals has held. The Court has affirmed the District Court decision holding that the Southern Poverty Law Center did not defame the group and that Amazon did not discriminate on the basis of religion. Amazon provides 0.5 percent of the purchase price for items bought through Amazon.com to “eligible” charities. A charity must be registered with the IRS and must agree that it will not “engage in, support, encourage, or promote intolerance, hate, terrorism, violence, money laundering, or other illegal activities.” It denies participation to organizations that SPLC designates as...

Pages

Subscribe to Lead Stories

Sign-up for our weekly Q&A; get a free report on electioneering