Tax, Legal & Compliance

Los Angeles County Supervisors Deny Nonprofit Exemptions to $15 Minimum Wage
September 18, 2015 at 9:42 am

Los Angeles County supervisors rejected a push to exempt nonprofits and job-training programs from a plan to increase the minimum wage for workers in county-controlled areas to $15 an hour by 2021. The measure to increase the wage in unincorporated areas first was passed by a split vote in July. The board approved the final…

Florida Private Investigator Charged With Attempting to Hack Muslim Charity
September 16, 2015 at 9:06 am

Timothy Sedlak, a private investigator in Florida, was charged Monday with trying to gain unauthorized access to a charity's computer system allegedly while doing research on whether some nonprofits are “unintentionally” providing financial support to Islamic jihadists. The charity wasn't identified in a complaint filed against the 42-year-old Sedlak in federal court in the Southern…

Lobbying 101: 6 Tips on Advocating Without Trouble
September 14, 2015 at 9:48 am

The Internal Revenue Code (IRC) rules limit the amount of time a nonprofit can spend on direct or indirect lobbying. The IRS rules, however, define lobbying only as work done in relation to specific federal, state or local legislation. This can present 
important issues for nonprofits as we ask the age-old question: “Is my organization lobbying or are we really just advocating and educating?” Here are some tips to keep in mind that will help you to promote your organization and its mission, while not running afoul of the lobbying rules...

Feds Indict Ex-CEO of Minneapolis Nonprofit on Fraud and Theft Charges
September 11, 2015 at 9:31 am

Federal authorities on Thursday indicted former Community Action of Minneapolis CEO Bill Davis and his son, Minneapolis Police Officer Jordan Davis, on 16 counts of fraud and theft, alleging they spent money meant for weatherization projects on personal travel, dining, entertainment and a car. The charges say the pair devised and executed a scheme to…

8 Legal Decisions and
 Government Affairs Affecting 
the Nonprofit Sector Right Now
September 9, 2015 at 9:55 am

On June 25, 2015, the Associated Press reported that Paul LePage, the Republican governor of Maine, had been accused of pressuring the Good Will-Hinckley school, a nonprofit charter school for at-risk youth, into removing Mark Eves from his position as president. According to the report, LePage threatened to withhold from the school $500,000 in yearly funds if it kept Eves on board, which, in turn, could have led the school to miss out on 
another $2 million in private funds, a potentially devastating blow to the small nonprofit. Eves, as it happens, is Maine’s Democratic House Speaker...

Former Head of Jared Fogle Charity Reaches Plea Deal
September 4, 2015 at 9:11 am

The onetime director of Jared Fogle's charity has agreed to plead guilty to charges of child exploitation and distributing and receiving child pornography as part of a conspiracy with the former Subway pitchman, the U.S. Attorney's Office in Indianapolis said Tuesday. The plea agreement with Russell Taylor, 43, a former head of the charity focusing…

Jared Fogle's Foundation Hasn't Issued a Single Grant
August 25, 2015 at 9:31 am

A USA Today investigation into the Jared Foundation's tax records found that the organization, founded in 2008, has not issued a single grant. According to the USA Today report, the foundation spent an average of just $73,000 a year, with 60 percent of that total allocated to former executive director Russell Taylor's salary and 26 percent unaccounted for...

Oklahoma Senator Admits $1.8 Million Theft From Nonprofit
August 21, 2015 at 11:23 am

A two-term state senator admitted in federal court Thursday that he stole $1.8 million from the nonprofit agency where he worked and filed a false tax return. Sen. Rick Brinkley, 54, admitted wrongdoing on all six charges—five counts of wire fraud and one count of subscribing to a false tax return. He negotiated a plea…

Subway's Jared Fogle Used Foundation to Access Child Victims
August 20, 2015 at 3:18 pm

On Wednesday, former Subway spokesman Jared Fogle pleaded guilty to possession of children pornography and having sex with minors. Court documents show that Fogle used his charitable foundation to access chidren, traveling to foundation-hosted events in Indiana and other states where he would meet and become close with victims...

Prosecutor: N.Y. 'Scam Charity' Duped High School Kids
August 14, 2015 at 1:29 pm

More than 100 New York teenagers—and dozens in Chicago, Houston and Nashville, Tenn.—were duped by a Long Island-based "scam" charity into working at concession stands at major sports and entertainment venues in those cities on the promise they would be paid $9 an hour, but most received little or no compensation, prosecutors said. Whelton Herron, president…