Previously, I blogged about the low interest rate environment and how that results in a great opportunity for a donor with charitable objectives who also wishes to pass assets to the next generation free of federal estate or generation-skipping transfer tax. To read that posting about Charitable Lead Trusts, click here. Well, rates have continued to stay at historic lows.  The IRS just announced the rates available for June of 1.2%.  These low rates mean that it’s easier then ever for these trusts to be productive to pass even more cash to lower generations free of transfer tax. So, if you think that the trust’s investment strategy could beat the IRS-decreed rate of 1.2%, while also benefiting charity, June is the time.

For an overview regarding the basics of lifetime CLTs, see A Primer on Lifetime Charitable Lead Trusts.

Tax-exempt organizations have not been immune from the impact of the economic downturn that began in 2008. In response to flat or declining donation income, many organizations have sought to generate revenue through activities that could be considered commercial in nature. While engaging in commercial-type activities may be a viable alternative in many situations, tax-exempt organizations should recognize that such activities may give rise to unrelated business taxable income, or UBTI and may even call into question their tax-exempt status. Moreover, the lines between related and unrelated activities are not always clear.  The attached article summarizes these issues.

Law Week Colorado

Legal Background

Organizations that are exempt under Section 501(c)(3) of the Internal Revenue Code may not participate or intervene in “any political campaign on behalf of (or in opposition to) any candidate for public office.” IRC 501(c)(3).[1]  This rule applies to all 501(c)(3) organizations—including 501(c)(3) churches.  Yet, just about every election there are accusations that this or that church has violated the rule by its minister preaching support for a candidate from the pulpit.

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The IRS is clear that nonprofit executive compensation is one of the top compliance issues. Please see the free CLE below regarding compensation best practices. There is also a rooftop reception afterwards where you can mingle with your colleagues and the panel (which I can personally guaranty is worth the price of admission).

Too Much? Too Little? Nonprofit Compensation

Hosted by
ST. LOUIS VOLUNTEER LAWYERS AND ACCOUNTANTS FOR THE ARTS

Sponsored by
THE GREATER SAINT LOUIS COMMUNITY FOUNDATION

May 14, 2013
Regional Arts Commission
6128 Delmar

If you serve on a nonprofit board of directors, advise nonprofits, or
have been following this issue in the news, this seminar is for you. Our expert
panel: Keith Kehrer, Bryan Cave LLP; Judy Murphy, RubinBrown LLP; and Kent M.
Rapp, Grant Cooper & Associates, will discuss best practices in determining
reasonable executive compensation, including the benefits of an articulated
compensation philosophy, compensation policies, IRS Form 990 reporting, pay equity
issues, collecting comparable data, severance packages and tips for working
with a search firm.

On April 25, the IRS released its Exempt Organization Newsletter, Issue Number 2013-7. Topics include the following

1. EO Director, at annual Georgetown conference, announces release of Colleges and Universities report
2. New features debut on EO’s webpages
3. Register for EO workshops
4. Attend the Exempt Organizations Workshop at the 2013 Tax Forums

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On April 4, the IRS released its Exempt Organization Newsletter, Issue Number 2013-6. Topics include the following

1. IRS issues proposed regulations on Community Health Needs Assessments,requests comments
2. IRS releases the Dirty Dozen tax scams for 2013
3. Register for EO Workshops
4. IRS releases FY 2012 Data Book
5. Public comment invited on recommendations for 2013-2014 Guidance Priority List (more…)

The following is a program that may be of interest to your organization and its leadership

What’s a Bylaw? Why Does My Organization Need Them and How do I Draft Them?

May 29 | 2-5 p.m. | $25

Instructors: Dan Sise, Nonprofit Management & Leadership Program | Laurie Hauber, Legal Services of Eastern Missouri Are you trying to draft bylaws for a nonprofit corporation? Does your nonprofit already have a set of bylaws that could use a review or overhaul? Do you want to learn more about how a well-crafted set of bylaws can lead to good governance and management of your nonprofit? If you answered yes to any of these questions, then you should attend this class. Samples and examples will be provided during class as will a list of helpful sources of information that will guide your organization towards an effective and well-crafted set of bylaws.

Register online

For additional information about this class, and all the continuing education classes offered by the Nonprofit Management & Leadership Program, please check out our web site.

On March 21, the IRS released its Exempt Organization Newsletter, Issue Number 2013-5. Topics include the following

1. IRS Exempt Organizations to launch Self-Declarers Questionnaire
2. IRS releases new required form for TEB VCAP submissions
3. Notice 2013-14 provides guidance on extending tax credit to veterans’ employers
4. IRS and Treasury issue proposed regulations on health insurance providers fee
5. Register for EO workshops
6. Retirement news for tax-exempt employers
7. IRS has $917 million for people who have not filed a 2009 income tax return

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From BenefitsBryanCave.com

Unless you’ve been under a proverbial (or actual) rock for the last several months, you are probably aware that the health reform law has a really big tax that could hit employers for not offering (or not offering good enough) health coverage to their full-time employees and dependents, referred to as play or pay (or “shared responsibility”) rules. We’ve discussed the proposed regulations previously here. But starting with this post, we are going to cover these rules in digestible portions. This will help you see some of the finer points of the rules, without having to swallow the entire regulations in a single sitting. In this first post, we’ll cover how you determine full-time employees (so you know who has to be offered coverage effective January 1, 2014)in a Q&A format. It’s worth noting the rules discussed here technically apply to all ongoing employees (we’ll touch on new hires later). (more…)

On March 4, the IRS released its Exempt Organization Newsletter, Issue Number 2013-4. Topics include the following

1. Effect of Sequestration on Small Business Health Care Tax Credit
2. Register now for EO workshops
3. 2012 Form 990 and 990-EZ – Significant changes
4. IRS Expands Voluntary Worker Classification Settlement Program
5. IRS Nationwide Tax Forum information
6. EO’s free e-newsletter helps keep charities and nonprofits up to date
7. IRS Exempt Organizations wants graduate students for the summer volunteer program

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