Tax, Legal & Compliance

Court: IRS Needs to Prove It Isn't Targeting Conservative Groups
August 9, 2016 at 10:00 am

A federal appeals court said the Internal Revenue Service has not proven it has ended discriminatory practices against conservative groups seeking tax-exempt status, reinstating a lawsuit against the troubled agency. The U.S. Court of Appeals for the District of Columbia Circuit's unanimous order on Friday reversed a 2014 lower district court ruling that previously dismissed…

Layoffs Expected, Huge Revenue Drop Possible at Wounded Warrior Project
August 8, 2016 at 11:47 am

It's been a rough six months for Wounded Warrior Project, and it's about to get rougher. New Wounded Warrior Project CEO Michael Linnington, who took over for former CEO Steven Nardizzi and former Chief Operating Officer Al Giordano following the charity's massive public controversy, said he expects layoffs as part of the organization's restructuring. And it's possible the charity will see a 50 percent drop in revenue this year...

Charity Director Funneled Millions to Militant Group Hamas, Israeli Investigators Say
August 5, 2016 at 9:32 am

An executive in a global Christian charity group secretly has been sending tens of millions of dollars—money intended to aid poverty-stricken families in chaotic Gaza—to the Palestinian militant group Hamas, Israeli investigators say. The news came Thursday as authorities indicted Mohammed Halabi on numerous criminal charges for misappropriating the funds. He is director of the Gaza…

Nonprofit Universities in DC Avoided $111M in Local Taxes Last Year
August 5, 2016 at 9:23 am

If George Washington University were any other employer, it would owe $39 million in property taxes to Washington, D.C., each year. Georgetown University would have to fork over nearly $9 million; American University, $11 million; and Howard University, about $26 million. But as nonprofit organizations, the universities—which control more than $10 billion worth of city…

Pharmaceutical Corporation Accused of Using Charities in 'Scheme to Gain Billions'
August 2, 2016 at 9:14 am

Since October 2015, at least four major pharmaceutical corporations have received subpoenas from the U.S. Justice Department investigating their relationships with patient-assistance charities. Add one more to the list. A whistleblower lawsuit last week accused Celgene, a biotechnology giant best known for producing the $644-per-pill cancer drug Revlimid, of donating hundreds of millions of dollars to patient-assistance charities as part of a "scheme to gain billions"...

Penn State Wants Sandusky Charity to Help Pay Abuse Victims
July 21, 2016 at 11:15 am

The latest development comes in a court document the university filed earlier this month, according to the Centre Daily Times. In it, Penn State asked that the insurers of Sandusky's former charity, The Second Mile—which asked to shut down in January and received the judge's OK in March—help foot the victims' settlement costs...

3 Lessons From One Nonprofit's Dramatic Fall
July 20, 2016 at 10:52 am

It’s not often that a nonprofit organization provides an object lesson in leadership, financial management, culture and governance all at once. But the grim, at times horrifying, tale of Healing Arts Initiative (HAI) is a special case. HAI is—or, it appears, was—a New York nonprofit that supported the area needy and elderly through arts performances.…

Congresswoman Charged With Fraud in Charity Scam
July 13, 2016 at 11:17 am

U.S. Rep. Corrine Brown of Florida and her chief of staff have been charged with multiple counts of fraud and other federal offenses in a grand jury indictment unsealed Friday after a federal investigation into a fraudulent charity with ties to the congresswoman. Brown, a 69-year-old Democrat, appeared Friday in Jacksonville federal court on charges…

Overtime Rules: A Third of Nonprofits Expect Staff Cuts, Reduced Services
July 12, 2016 at 8:44 am

The Department of Labor in May announced new overtime rules, effective Dec. 1, that will make millions more Americans eligible for overtime. Predictably, reaction has been mixed, but it wasn't clear exactly how the rules would affect the sector. Now, we have a better understanding. National Council of Nonprofits last week released the results of a national survey polling nonprofits with government grants and contracts on the overtime rule changes, and the results are, well, kinda grim...

FBI Director Won't Say If Clinton Foundation Was or Is Currently Under Investigation
July 8, 2016 at 10:29 am

FBI Director James Comey refused to say Thursday whether the bureau investigated the Clinton Foundation as part of its probe into Hillary Clinton’s handling of classified information as secretary of state. “Did you look at the Clinton Foundation?” House Oversight Committee Chairman Jason Chaffetz asked. “I’m not going to comment on the existence or non-existence…