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Renew Early? Pay Later?

May 30, 2013

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Renew Early? Pay Later?

May 30, 2013

Authored by: Chris Rylands

From BenefitsBryanCave.com

While we have not heard it first-hand, we have heard through the grapevine that some insurance carriers are out there offering to their clients the ability to “renew early.”  Part of the strategy is, apparently, to delay the application of health care reform provisions.  The following discussion addresses some risks associated with reliance on such a strategy as a means of complying with the employer mandate and the insurance mandates.

EMPLOYER MANDATE:  At the outset, let’s be clear about one fact: this does not get an employer out of play or pay.  The employer mandate rules specifically say that a plan year can only be changed for a valid business purpose and that, in this case, avoiding the shared responsibility tax is not a valid business purpose.  Renewing early is (assuming other legal niceties are satisfied) a change in plan year.  Without a business purpose,

Interest Rates Indicate a Great Time for Charitable Lead Trusts

May 21, 2013

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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.

Generating Income Beyond Donations? Beware Lurking Tax Consequences

May 15, 2013

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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

Churches in Politics

May 1, 2013

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Churches in Politics

May 1, 2013

Authored by: Nathan Boyce

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.

Too Much? Too Little? Nonprofit Compensation

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

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