Lead Stories

The Second Circuit Court of Appeals has affirmed the right of the New York Attorney General to require organizations seeking to solicit contributions within the state to file a list of names of significant donors in order to register.  It has rejected constitutional claims by a related 501(c)(3) charitable organization and 501(c)(4) social welfare organization that attempted to raise arguments that had prevailed in similar litigation in California.  (See Nonprofit Issues^®, 12/16.

Is a personal trust entitled to a full fair market value deduction for a gift of real estate just like an individual or corporate taxpayer?  No, says the Tenth Circuit Court of Appeals in what appears to be a case of first impression in the courts.  It has reversed a District Court opinion and held that the deduction is limited to the adjusted tax basis of the property under the special provisions of section 642(a)(1) of the Tax Code.

One politically conservative nonprofit organization can bar another from the annual Conservative Political Action Conference (“CPAC”) without violating antitrust laws, a federal District Court has ruled, even if the barred organization is unable to increase its prestige, goodwill, and obtain donations.  The federal District Court in Florida has held that the action is not a restraint on “trade or commerce” governed by the Sherman Act.

The former CEO of two nonprofit corporations affiliated with the State University of New York Polytechnic Institute has been denied an advancement of legal fees to defend against criminal charges resulting from the corporations’ procurement practices.  An appellate court in New York has affirmed a trial court order denying payment.

The Senate Tax Bill being considered simultaneously with the House Tax Bill in the Republicans’ effort to get something to President Trump by the end of the year, would not modify the Johnson Amendment to allow churches to engage in political activity, but would impose new unrelated business income taxes, deny across-the-board deductions for expenses in generating the unrelated business income, and would impose a tax on organizations involved in excess benefit transactions.

The “Tax Cuts and Jobs Act” (H.R.1) introduced by the Republicans in the House of Representatives contains a series of specific provisions that would affect charitable organizations but has drawn most of its criticism from national charitable organizations for its apparent impact in reducing the economic incentives for charitable giving and for partially repealing the “Johnson Amendment” to permit churches to engage in political activity.