Summer 2004

What’s New at the Pro Bono Partnership

The 2003 Annual Report of the Pro Bono Partnership is now available electronically. Click Here.  

The Partnership is very pleased to welcome its newest volunteers.  Click Here for a listing of our new in-house and law firm volunteers: 

The Partnership has developed a new workshop on “Website, Technology and Fundraising Issues for Nonprofits”  that focuses on the legal issues raised when charities use the internet for fundraising and other reasons.   This workshop will be offered in White Plains on June 17^th, and in New Jersey in the fall. 

Spotlight on Clients and Volunteers

Anahaita Kotval, Esq., Associate General Counsel with RBS Greenwich Capital Markets, one of the Pro Bono Partnership’s  2003 Volunteers of the Year, was recently featured in the Greenwich Citizen. 

New Publications posted on the Pro Bono Partnership Website

We are pleased to announce that the following publications are now available on the Partnership’s website:

·         “Helpful Internet Resources for Nonprofits.”  This article is a summary of links to helpful information affecting all aspects of nonprofit tax-exempt organizations:  Click Here.

·         “Questions and Answers About Criminal History Background Checks.”  This article was provided by the Nonprofit Risk Management Center © 2004.  Click Here

Did You Know?

• In this election year, it is important to remember that tax-exempt charities are prohibited from attempting to influence elections, including the selection of candidates (either supporting or opposing a candidate for public office).  Engaging in such activity will subject a charity to excise taxes, and/or possibly the loss of the charity’s tax-exempt status. 

• Two sections of the federal Sarbanes-Oxley Act expressly apply to nonprofits: a prohibition on retaliating against a staff member who ‘blows the whistle’ on financial accounting practices or otherwise complains about financial improprieties, and the record retention/destruction rules which prohibit destruction of documents when an investigation is underway.  Accordingly, many nonprofits have contacted the Partnership for guidance so that they will be ready to act in the event complaints are raised about financial accounting issues.  Additionally, many nonprofits are drafting policies informing staff how long certain documents need to be maintained and not to destroy documents under investigation.

• The rationale behind any compensation to directors and officers, including reimbursement for expenses,  MUST be documented, such as in minutes of a board meeting during which the board discussed the reasonableness of the compensation.  The IRS has announced that it will consider any compensation to trustees that is not documented to be automatically excessive, leaving the nonprofit, the trustee who was compensated, and all the other trustees, open to potentially severe excise taxes.

• A recent study reported that 57% of Americans who volunteer believe that volunteering has helped their careers by providing them with opportunities to learn new skills and meet other professionals, or even by assisting them during a career transition.  Attorneys in transition often work on pro bono matters through the Pro Bono Partnership and find that pro bono work provides a fulfilling outlet for their expertise during a time of professional transition.

• Are you interested in serving on a nonprofit board or finding board members?  Check out BoardNetUSA.org, which is a national, on-line service where potential board members can "shop" for nonprofits seeking board members.  Nonprofits can also "advertise" for potential new directors on the site.
   http://www.boardnetusa.org

Frequently Asked Questions

Every day nonprofits call the Partnership’s office with questions about their day-to-day operations.  New questions addressed in this issue include: board member liability, charities “going dormant,” and what to do when employees fail to provide time sheets.  By following this link to the Partnership’s website, you can review our staff attorneys’ responses to these frequently asked questions.  Click Here

Upcoming Legal Workshops

Join us for a brown bag lunch discussion on "Should You Apply for Tax Exemption?"  on Wed. July 21, 2004 from noon-2 pm at the Partnership's White Plains office.  Co-sponsored by JPMorgan Chase, this important seminar will thoroughly discuss the process of becoming a charitable organization, and will help you determine whether this is the right choice for your organization. To register please contact Tatyana Golynker at 914-328-0674.

The Pro Bono Partnership offers LEGAL EDUCATION WORKSHOPS that are designed for staff and trustees of nonprofit organizations.  Click Here for a list of topics to be featured in the Partnership’s Fall 2004 Workshop Series.

Legal Alerts and Recent Developments

Updates from the IRS and Congress: 

• The IRS may be stepping up enforcement in the coming months, primarily in cases of late or incomplete 990’s.  Remember there are penalties for late-filing and incomplete returns.
  
   
• The IRS is planning to target charities whose 990’s raise issues of excessive trustee compensation and fundraising expenses that appear low in comparison to the amount the organization has raised through charitable contributions.  Special attention should be paid to documentation of these issues.
  
   
• New regulations on wage payment/overtime rules were passed by Congress in April, and are explained on the DOL web site at: http://www.dol.gov/esa/regs/compliance/whd/fairpay/main.htm .  The effective date for the new regulations is August 23, 2004.   If you have questions about how the new rules on overtime affect your workplace, please contact the Partnership.