Last year, New York Attorney General Eric Schneiderman unveiled a plan to “revitalize” New York’s nonprofit sector. We told you about it here. This year, he has a new focus – 501(c)(4) “social welfare” organizations. This isn’t too surprising given the press these organizations have received lately, but the high level of transparency the AG’s …
Posts Categorized: News
America's Most Wanted: Charities Edition
The Tampa Bay Times recently ran a series on what it and The Center for Investigative Reporting describe as the nation’s 50 worst charities. These include nonprofits whose fundraisers earn up to 98% of every dollar earned and whose insiders make millions of dollars per year. The articles also admonish charity regulators for not doing …
Legal Discrimination and Boy Scouts' End of Ban on Scouts
Did you know that most nonprofits can legally discriminate? According to the Supreme Court, the tax laws that recognize tax-exemption allow 501(c)(3) and other exempt organizations (other than schools) to selectively provide their services to only certain groups of individuals. For example, in Boy Scouts of America v Dale, that court ruled that the First …
Hershey Trust Settlement Shocks Many, Has a Lesson for All
Two years ago, the Pennsylvania Attorney General began an investigation into the $9 billion Hershey Trust, which operates a prominent residential facility for disadvantaged youth. The investigation started after the trust made multi-million dollar purchases of a golf course and an adjacent market. Allegations of inappropriate expenditures followed, claiming that board members received excessive compensation …
Family Tensions May Split Foundation
When family foundations are forced to move on from the founding generation, it is a time rife for fights over who will control the organization. The William Davidson Foundation, founded by William Davidson, a businessman and owner of the Detroit Pistons basketball team, is facing these growing pains. A petition to split the $1 billion …
IRS Suspends Exempt Orgs Head
Yesterday Lois Lerner, the head of the IRS division on exempt organizations, refused to answer questions at a congressional hearing. Today the IRS put her on an indefinite administrative leave. This comes in response to the Senate Permanent Subcommittee on Investigations demanding her immediate suspension. Right now it’s not clear whether the suspension will lead …