Legal experts: Parks Foundation case could have major implications for nonprofits

• Date: 01 January 2018
• Published date: 01 January 2018
• DOI: http://doi.org/10.1002/nba.30403

JANUARY 2018

7

NONPROFIT BUSINESS ADVISOR

© 2018 Wiley Periodicals, Inc., A Wiley Company • All rights reserved

DOI: 10.1002/nba

Industry News

Legal experts: Parks Foundation case could have

major implications for nonprots

A legal case working its way through the courts

could have serious repercussions for nonprots in-

volved in policy and issue advocacy. The U.S. Court

of Appeals for the Ninth Circuit recently heard oral

arguments in Parks Foundation v. Commissioner of In-

ternal Revenue. According to the Alliance for Justice,

which has led an amicus brief in the matter, the case

revolves around radio ads placed by a private foun-

dation—the Parks Foundation—and has signicant

implications for such policy-inuencing activities of

private foundations and public charities, especially

regarding ballot measures.

In the decision now on appeal, the United States

Tax Court looked at a series of radio ads created

and funded by Parks between 1997 and 2000 and

determined that the messages constituted taxable

expenditures under the Internal Revenue Code. The

ads—which ranged from 30 to 60 seconds long—

contained information and commentary regarding

a variety of issues relevant to upcoming state ballot

measure elections. Although several of the ads did not

mention specic ballot measures by name, the court

decided that if a communication “employs terms

widely used in connection with the measure or de-

scribes the content or effect of the measure,” it will be

Millennials more diligent in researching charities than prior

generations

A new survey conducted by the Better Business

Bureau’s Wise Giving Alliance nds that millennials are

the most likely of all the different living generations to

thoroughly research a charity before donating to it, and

are passing that habit along to their children as well.

According to the BBB’s survey—available online at

Give.org—just about half of millennials said they always

research a charity before donating, compared to 37

percent of both Generation X and baby boomers, and

29 percent of the Silent Generation (those born before

1945). Further, the survey shows that upwards of six in

10 millennial parents have talked about charitable

giving with their children in the past year, and they are

introducing their children to more types of charity than

other parents. For example, millennials were most likely

to talk with their children about disaster relief, animal

protection, and environmental and health-related chari-

ties, the survey said.

Some other highlights from the survey include:

• Forty-nine percent of the conversations millennials

have with their children are sparked by social media,

compared to only 29 percent of Gen X conversations.

• Millennials were also most likely (60 percent) of

any generation to have donated to hurricane relief

after Harvey, Irma and Maria.

• Millennials were far more likely (79 percent) to have

researched hurricane relief charities before donating

this hurricane season, compared to Gen X (59 percent)

and baby boomers (56 percent).

The ndings stand in contrast to some negative

stereotypes about millennials and charitable giving,

according to Art Taylor, president and CEO of Give.org.

In fact, Taylor said, the research shows that millennials

are raising the “most charity-conscious generation in

history.”

“With American generosity reportedly in decline,

charities can only hope Millennials’ children will take

engagement and transparency to new heights,” Taylor

said in a statement on the research.

According to the BBB, digital technologies and

transparency have combined to put millennials in the

driving seat when it comes to their giving decisions.

More than other generations, millennial donors want to

know that their donations are making a difference. They

expect transparency on a charity’s activities, nances

and governance, the survey shows, and thanks to

digital technology, they are able to conduct this kind of

research more easily than any generation before them.

And crucially, they are rewarding worthy charities with

donations, and shunning those with poor reputations

or about whom they don’t know enough.

For more information, visit http://www.give.org. ■

(See LAWSUIT on page 8)