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.

A licensed practical nurse at a nonprofit residence for persons with disabilities has lost a claim for discrimination and retaliation after she was fired for failing to follow protocol when a resident was injured in an unwitnessed fall.  A federal District Court in Kansas has dismissed the claims when it held that the LPN did not show that the stated reason for the termination was only a pretext for discrimination.

A 63-year-old counselor and case manager for a nonprofit family service agency may proceed with a case of age discrimination in his termination, a federal District Court in Illinois has held, but not a claim for a hostile work environment.  It has rejected the defendant’s motion for summary judgment on the discrimination claim but granted it on the hostile work environment claim.

The IRS has announced that it will no longer require a 501(c) organization to file a new application for exemption in many cases if it changes its form of entity or its state of organization. The new rules apply to any organization exempt under 501(c), not just to charities under 501(c)(3). (Rev. Proc. 2018-15.) 

The Tax Court has imposed first and second tier excess benefit taxes on the CEO of The Association for Honest Attorneys, who used the organization’s money for personal purchases over a three-year period.  The total amount for the three-year period is more than $88,000.