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Nonprofit’s Diversity Scholarship Program Challenged in Federal Court

On March 5, Do No Harm filed a lawsuit against the American Chemical Society (ACS), a 501(c)(3) nonprofit organization, challenging a scholarship program for undergraduate students from historically underrepresented groups in...more

Know What You Don’t Know: What Are the Top Legal Issues Nonprofits and Associations Are Thinking Through Right Now?

The landscape is in flux right now for nonprofits, to say the least. To help structure your action plan, these are some of the top questions our Nonprofits & Associations team has been helping our clients think through....more

Proposed Legislation Targets Nonprofits Supporting Immigrant Communities

Proposed legislation introduced in the US Senate last week would deny tax-exempt status to certain organizations that support undocumented immigrants. The legislation would change the eligibility requirements for 501(c)(3)...more

Court Halts Trump Administration Order Pausing Government Grants (For Now)

Many parties are rightly concerned about the impact of yesterday’s announcement that nearly all federal funds will be frozen for an indeterminate period. Minutes before it was intended to go into effect today, a federal judge...more

Supporting Employees Impacted by Wildfires

The ongoing Los Angeles, California, wildfires have caused widespread devastation, forcing residents to evacuate, and have destroyed homes and communities. President Joe Biden approved a Major Disaster Declaration in response...more

Health Care Provider Loses Tax-Exempt Status in Fifth Circuit Decision

On October 28, the US Court of Appeals for the Fifth Circuit held that a nonprofit corporation that coordinates health care for privately insured patients does not qualify for tax exemption under Section 501(c)(4) because it...more

Staying on Course: Navigating Election Year Issues for Exempt Organizations

With the 2024 election cycle underway, it is important for exempt organizations to understand and comply with relevant restrictions on political campaign activities to safeguard their tax-exempt status and avoid triggering...more

10 Legal Issues for Nonprofit and Association Leadership in 2024

As 2024 gets underway, the nonprofit sector will continue to face new challenges in addition to grappling with ongoing challenges that continue to impact the sector. Our interdisciplinary team, serving thousands of nonprofits...more

IRS, Treasury Release Proposed Regulations on Donor-Advised Funds

The US Department of the Treasury (Treasury Department) and Internal Revenue Service (IRS) recently published proposed regulations under Section 4966 to provide additional guidance on several issues related to creating and...more

The Nonprofit Sector Need Not Apply: The Corporate Transparency Act and its Tax-Exempt Organization Exemptions

ArentFox Schiff’s clients report being inundated with notices from registered agents and other service providers to comply with the Corporate Transparency Act (CTA), a new law that will require many existing and newly formed...more

IRS, Treasury Release Final Regulations Impacting Type I and Type III Supporting Organizations

The Internal Revenue Service (IRS) and the US Department of the Treasury released final regulations on October 16 that address the changes enacted by the Pension Protection Act of 2006 (PPA). The regulations provide...more

Money (That’s What I Want): IRA’s Direct Pay Mechanism Benefits Tax-Exempt Entities

The Inflation Reduction Act (IRA), which recently celebrated its one-year anniversary, presents new opportunities for tax-exempt and other organizations to directly benefit from renewable energy tax credits, including...more

Congress to Examine Political Activities of Nonprofits

The US Congress has announced it will be conducting hearings on whether tax-exempt entities are abiding by existing laws that regulate the amount of partisan activity they may engage in — and whether foreign money is being...more

Section 501(c)(4) and the Social Welfare Organization

On September 14, 2022, The New York Times published an article detailing the Chouinard family’s transfer of the majority of their ownership interests in Patagonia to a 501(c)(4) nonprofit organization....more

Recent Priority Guidance Plan Shows Increased Focus on DAFs by IRS

The US Department of the Treasury and the Internal Revenue Service issued its most recent Priority Guidance Plan Joint Statement (the Plan) on November 4, 2022. The Plan details more than 200 priorities for the 12-month...more

New IRS Technical Guide Creates a Resource for 501(c)(6) Trade Associations

The Internal Revenue Service (IRS) recently published a new Technical Guide for tax-exempt 501(c)(6) trade associations, business leagues, chambers of commerce, real estate boards, and other organizations exempt from federal...more

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