1998 Nonprofit Alert Archive

December 1998

• Tax Break for Stock Donations Permanent
• Nonprofit Liable for Volunteer’s Negligence
• Postal Service Targeting Nonprofit Eligibility Rates
• Board Trustees Liable for Preferential Contracting
• ‘Fair Share’ Policies Draw Negative Attention
• New Warning: Alliance Tracks Pirated Software
• Y2K and Beyond: What It Means for Nonprofits
• If It Looks Like a Duck and Quacks Like a Duck…
• No Arbitration Unless Employee Knowingly Agrees
• It’s That Time Again: Year-End Receipting Beckons
• IRS Hints at Future Developments
• Critics Prevail; No Change in Tax Filing Threshold
• North Carolina Raises Charitable Gift Tax Credit
• Ohio Denies Tax Exemption to Church Parking Lot
• Oregon Camp Residence Escapes Property Taxes

November 1998

• Supreme Court Won’t Revisit Case of Bankrupt Donation Pursued by Trustee
• Congress Extends Copyrights to 70 Years, Plus Additional Protection for Some Nonprofits
• Charities Prepare for Coming Disclosures
• State Fights to Remove Trustees for Breach of Duty
• Charity Pays $75,000 to Settle Fundraising Uproar
• Nonprofit Liable for Swimming Pool Accident
• Campus Ministry Not Exempt From Unemployment
• Have Car, Will Travel – – And Deduct Auto Lease
• IRS Casts Weary Eye to Split-Interest Insurance
• Turning the Tables…And Chairs…on UBIT
• International Issues Abound for Nonprofits
• Good News Just Got Better: Deductions Increase
• California Imposes Registration on Consultants
• LLC Company Qualifies for New York Exemption

October 1998

• Court Upholds Registration Law on Fundraisers
• Nonprofit Endorsement deal Raises Questions
• Serving Two masters: A Situation Ripe for Conflict
• Charity Exec Collects $1.5M Defamation Award
• Board Member Faces Criminal Charges for Bids
• Harassment Leads to Retaliatory Discharge Claim
• Transportation Benefits Offer Nice Tax Break | No Gain, No Pain: Couple Avoids Inurement
• Conference Center’s Meals Subject to Tax
• AICPA Changes Fundraising Allocations
• Loose Lips Sink Ships – – And Charitable Deductions
• Georgia Raises Threshold for Independent Review
• Oklahoma Adds Genetic Discrimination to Statutes

September 1998

• IRS Releases Regs on Intermediate Sanctions
• ‘Historic Wealth Transfer’: $1 Trillion to Charities
• Children’s Charity Banned from Fundraising
• Art Museum drops Lawsuit Against Donor
• Change of Heart Costs Association $9.9 Million
• Boy Scouts May Be Liable for Negligent Retention
• Insider Transactions: Slow Down, Curve Ahead!
• CGA Case Finally Ends After Long Legal Battle
• To Count or Not to Count Earmarked Gifts?
• Special Housing Arrangements Prompt Tax Liabilities
• Maryland Laws Favor Nonprofits
• Oregon Harpoons Aquarium Exemption
• Pennsylvania Exempts Park; Admission Fees Okay
• Goodwill Hunting: Big Gift from Clueless Donor

August 1998

• Form 990 Disclosure Starts Soon; Nonprofits Brace for Onslaught of Requests
• Supreme Court Lets Ruling Stand on Church Exemptions from Unemployment Taxes
• Museum Audit Uncovers Conflicts of Interest
• Charity Exec, Lawmaker Face Conspiracy Charges
• Work Security Sees More Employee Threats
• Employee v. Contractor: Two Taxing Tales
• Faulty Release Violates Age Discrimination Law
• Pooled Income Funds: Merging Into Bigger Pool
• Foundation’s Scholarships Pegged with Tax
• From Morbid to Moribund, UBIT Abounds
• California Nonprofits Face Greater Scrutiny
• Michigan Governor Vetoes Nonprofit Tax Break
• New Ethical Standards Designed for Nonprofit Boards
• New York Denies Sales Tax Exemption to AARP

July 1998

• Congress Passes Charitable Donation Protection Act
• Nonprofit Postal Rates On the Rise Again
• Affiliate of National Charity Keeps $1M
• Knowledge Isn’t Everything When Tax At Issue
• Employer May be Liable for ‘Peeping Tom’
• Once Is Enough for Alcohol Treatment
• Doctor’s Orders: Go to Work!
• Volunteerism Higher in U.S. Than Most Countries
• Adopt-A-Pet Neutered by IRS
• Leases Okay, but Storage Produces UBIT
• Indiana Grants Exemption for Church Renovation
• Colin Powell Challenges Nonprofit Associations
• Michigan Study Shows Reluctance to Bequeath
• Brokerage Firm Pays Royalties to Nonprofits
• Two Indicators Show Donations on the Rise
• Tax Code v. Bible: Words Apart

June 1998

• Travel Tours: IRS Makes UBIT Limitations Official
• Internet Taxes Halted by Moratorium Legislation
• Cancer Charity Cleared of Financial Wrongdoing
• Director Personally Liable for Fiduciary Duty to Creditors
• Defamation: A $1.2-Million Yard Sale Bargain?
• A Meal Ticket to Taxes: Employer Liable for Withholding
• Executive Compensation Remains at Forefront
• Corporation’s Gift of Stock Qualifies for Tax Break
• Veterans Post Loses Exempt Status After Operating Profit-Making Activities
• Private Foundations Get Clean Bill of Health from IRS
• District of Columbia Looks Again to Taxing Exempts
• Hawaii Abandons Tax; Nonprofits Escape Coverage
• ‘Charitable Choice’ Would Expand to More Social Programs
• Tennessee Permits Property Transfers, Despite Tax Liens
• Checking up on Donors: No ‘Blank’ Deductions
• Annuity Payouts Should Decline Slightly, Council Suggests
• Software developer Offers Free Web Space to Nonprofits

May 1998

• IRS Extends Deadlines in Two Major Employer Programs
• Membership Mail Meets 50% Limit Under New USPS Rules
• Nonprofit Assessed $1 Million for Volunteer’s Conduct
• Missed Deadline Forces Return of $3-Million Gift
• CBN Pays Big IRS Settlement, But Retains Exempt Status
• FMLA Clock Starts Ticking with Temp Time
• FMLA Clock Skips Time for Vacations & Holidays
• Stress & ADA: Relief for Employer; Remorse for Employee
• Nonprofit Puts Director to Bed – – With IRS Approval
• Nonprofit Landlord Furthers Mission by Renting Building
• Bankrupt Donors: Can You Keep Their Contributions?
• Massachusetts Exempts Nonprofits’ Video & Film Sales
• Washington State Considers fundraising Exemptions
• Charitable Benefit Warrant: The Latest Financial Product
• Nonprofit Salaries Lag, but Vacations Outpace Industry

April 1998

• Supreme Court Extends Sexual Harassment Protection
• Critic Barred from Using Domain Name of Nonprofit
• Charity Wins $1.5 Million in Damages From Fund Raiser
• Nonprofit Liable for ‘Rescuer’s’ Muddy Fall | Nonprofit’s Executive Salaries raise Alarm in Congress
• One Little Mistake Invalidates early Retirement Waiver
• Social Security Benefits Don’t Hamper ADA Rights
• Fitness Center Sweats Through IRS Workout
• Strict Limits Proposed on Charities’ Political Activities
• Colorado Considers Tax Exemption for Donated Goods
• Home Office Injuries: Can an Employer be Liable?
• Missouri Exempts Nonprofit Construction
• Universities Roundup Gift of $9-Million Ranch
• The ‘Stamp’ of Approval for Philanthropy

March 1998

• Charitable Giving, Nonprofit Employees Stand to Benefit from Pending Legislation
• Work-Study Students Freed of Social Security Taxes
• Cash Award Permitted; Not an Excess Benefit
• Company VP Narrowly Escapes Back Tax Liability
• Nonprofit Locked in Legal Battle with Its State Affiliate
• IRS Now Accepts E-Mail to Document Travel Expenses
• Clients of Exempt Work Program Classify as Employees
• IRS Barks Up the Wrong Tree on Kennel Club’s Income
• Inflation Raises Amounts Donors Deduct for Quid Pro Quo
• Florida Privacy Proposal Defeated; Mailing Lists Now Safe
• Connecticut Protect Charities from FOIA Requests
• Employees on Loan: Are YOU Their Employer?
• Bookstore Launches Creative Fund Raising Venture
• Gifted Ghost Town Scares Up Tax Deduction
• Electronic Newsletter Published for Board Members

February 1998

• New Copyright Law Protects On-Line Material
• Supreme Court Weighs In on Controversial Annuity Case
• Fiduciary Duties Part I: Director’s Failure to Inform
• Fiduciary Duties Part II: Minister’s Sexual Misconduct
• Refusal to Verify Employment Leads to Liability
• Get Along by getting Along, Not by Arguing Disability
• Private Inurement Brings Down Club Members
• IRS Says: ‘No Records; No Exemption’
• Standard Mileage Rates, Per Diem Increase for 1998
• Arkansas Exemption Depends on Use, Not Ownership
• Florida Privacy Proposal Gaining Attention
• Virginia Taxes Solicitations by Out-of-State Nonprofit
• Joint Ventures: Nonprofits Must Exercise Control
• Bankruptcy Court Approves Reasonable Contributions
• Consider Joint Marketing with Commercial Product
• Year 2000: Excuse for Another Day Off?

January 1998

• Landmark Case Preserves Pennsylvania Tax Exemption
• Inurement Governs Third Party ‘Insiders’
• Volunteer Loses Harassment Case Against Hospital
• Seven Arrested for Embezzlement at Goodwill Industries
• Legal Questions Prompt Request for Board Resignations
• Employee Drug Testing Must be Without Pretext
• Common Mistakes Hamper W-2’s, Create Penalties
• Writing on the Wall Generates UBIT
• Tax Exempt Bonds More Popular as Finance Tool
• California Shuts Down ‘Living Trust Mill’
• Fumigating the Year 2000 Bug: What Works for Nonprofits
• Florida Favors Phone Freebies for Philanthropies
• Charitable Remainder Trusts Get Timing Reprieve
• Catalog of Charities Showcases Little-Known Groups