Bruce R. Hopkins' Nonprofit Counsel

Publisher:: Wiley
Publication date:: 2021-02-01

ISBN:: 1542-8419

Issue Number

No. 39-1, January 2022

Latest documents

The Year Ahead: Major Tax Changes for Nonprofits in 2022
Non‐profit organizations have had to adapt to numerous challenges in the last few years; some changes were legislative, while others were related to the COVID‐19 pandemic. Not surprisingly, there are further political and organizational changes on the horizon for 2022.
Status of American Health Care Act
When this topic was first introduced last month, the anticipation was that there would be a series of articles, in coming issues, under this headline. Then, it looked like future articles were unlikely.
Supreme Court's Same‐Sex Marriage Opinion and Its Implications
The US Supreme Court, on June 26, with Justice Kennedy writing for the majority, ruled (5–4) that there is a constitutional right to same‐sex marriage, with this right to marry a “fundamental right inherent in the liberty of the person, and under the Due Process and Equal Protection Clauses of the Fourteenth Amendment,” and that “couples of the same sex may not be deprived of that right and that liberty” (Obergefell v. Hodges).
COVID‐19 Relief Laws Benefit Nonprofit Organizations
Legislation creating a $2.2 trillion economic stabilization package to combat the COVID‐19 pandemic became law on March 27, when President Trump signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act (Pub. L. No. 116‐136). This was the third, and most massive, COVID‐19 emergency relief act passed by Congress in March. There are several features of the act of direct interest and import to nonprofit organizations.
Tax Reform Legislation Signed Into Law
Congress, on December 20, completed its work on the tax‐reform legislation (H.R. 1). President Trump signed the measure into law on December 22 (Pub. L. 115‐97).
How's This For Private Inurement?
A nonprofit organization was established to provide education related to “health, balanced, effective living, and happiness in the form of one‐on‐one counseling, public lectures and seminars for established groups, including churches, yoga centers, fitness centers, health food stores, and bookstores.” During this entity's initial years of operations, it will primarily fund the continuing education of its founder, president, and director, who is engaged in full‐time studies at an institution to become certified in a health care profession. This funding will encompass airfare and other transportation, an apartment and furnishings, tuition, school supplies, and training seminars. Plus, this individual will be paid a salary while studying.
In Memoriam: Bruce R. Hopkins
Readers of this newsletter, which bears Bruce Hopkins' name, no doubt feel they know Bruce personally. His wit, wisdom, and personality shine through in his writings that kept readers up to date on the latest developments in nonprofit law. And, Bruce did more than provide a straightforward explanation of the matter at hand. What made Bruce unique is how adeptly he offered valuable insight and perspective about key developments, informed by some five decades of scholarship in the nonprofit field, and a willingness to speak frankly and criticize cases and rulings he found deficient in reasoning or result.
Pandemic Provides Basis for Successful Set‐Aside Requests
The IRS approved a private foundation's set‐aside program, reflecting the “tremendous impact the COVID 19 shutdown” in a state “has had on all current construction projects” (Priv. Ltr. Rul. 202053017). The purpose of the requested set‐aside “is to ensure that these projects will be properly managed, monitored and brought to a satisfactory and quality conclusion in a successful and timely manner.” The foundation asserted it would not be prudent to pay the contractors the total amount prior to the completion of the entire job.” It observed that, due to the pandemic, the “timelines for when these projects will be completed is uncertain.” The final successful argument was that this set‐aside approach will allow the foundation to “maximize control over the projects, with the goal of a achieving a better and successful result.”
Administrative Office of Religious Organization Held Eligible for Real Estate Tax Exemption
The Tax Court of New Jersey, by decision dated March 4, held that an administrative office building owned by a religious and charitable corporation is entitled to real estate tax exemption because the office operations directly further the entity's exempt purposes (Ocean Grove Camp Meeting Association of the United Methodist Church v. Township of Neptune).
GAO Issues (Rather Pointless) Report on Colleges' Tax Status Conversions
The US Government Accountability Office, in a report made public in late January, issued its analysis of what it terms “for‐profit college conversions,” in response to a request from four members of Congress. The GAO examined the extent to which the IRS and Department of Education responds to these conversions, particularly in relation to what it characterizes the “risk of improper benefit.” This report is titled “Higher Education: IRS and Education Could Better Address Risks Associated with Some For‐Profit College Conversions” (GAO‐21‐89 (Dec. 2020)).