At year’s end, we often reflect on lessons learned and experiences shared, and also on those people and the things for which we are grateful. In a break from our usual fare, what follows is a more personal reflection from our law firm’s attorney Jonathan Hwang on some aspects of the unique nature and culture of Wagenmaker & Oberly.
Nonprofit Corporate Law/Religious Organizations/Social Enterprises/Tax Exemption
Congress Seeks to Restrain IRS on “Dark Money” Schedule B Donor Disclosures
Are tax-exempt organizations required to disclose their major donors on their IRS Form 990 Schedule B’s, or not? In July 2018, the IRS issued Revenue Procedure 2018-38, answering “no” for Section 501(c)(4) and other tax-exempt organizations, but leaving the disclosure requirement intact for Section 501(c)(3) organizations and Section 527 political action committees (known as PACs).
Fundraising/Nonprofit Corporate Law/Tax Exemption
“Millionaire” Employment Tax: Could This Be Your Nonprofit?
How much is too much compensation for nonprofit executives? Many nonprofits face the opposite challenge, with below-market pay provided to key leaders who are willing to make financial sacrifices. A new tax law nonetheless aims to curb abuses of Section 501(c)(3) organizations offering either very high salaries or too generous severance pay upon departure. The penalty? A 21% excise tax on the amount deemed to be excessive compensation. Nonprofits thus may continue with such compensation largesse, but only if they pay Uncle Sam too.