Bromberger Law

Online Fundraising Platforms now Regulated in California California has just become the first state in the US to enact a law specifically regulating online fundraising and fundraising platforms. The law covers businesses and charities that use the internet to solicit charitable contributions in California. The new law -- AB 488 -- amends the state’s existing state laws on solicitation of charitable contributions and regulation of professional fundraisers. It creates several n...ew categories of regulated entities (including charitable fundraising platforms and platform charities) and imposes new requirements on these entities, including registration, disclosure, accounting, and payment processing requirements. The law is broad and covers solicitation activities made via the web, phone, text, and any other method that uses the internet (which is left undefined.) The new rules are generally considered fair and workable. They replace a process that everyone agreed was unfair and unworkable, so it is expected that most platforms will register and comply. The new law goes into effect on January 1, 2023. The penalties for non-compliance include fines and action by the Attorney General, who has been given expanded powers to investigate and enforce the law. The state still has to promulgate regulations to implement the new law, but other states are expected to adopt similar measures if it works. See more

Labor Department Stops Enforcing Rule Disfavoring ESG Investments for Retirement Plans Last year, as we reported, the US Labor Department issued a rule that prohibited retirement plans from considering the environmental or social impacts of their investments unless they could demonstrate that the profitability of the investments was not affected. Critics complained that the rule was arbitrary, political, and unworkable, its adoption was rushed, and it unfairly limited investo...rs’ choices regarding acceptable asset classes, prudence, and risk. After hearing from many stakeholders, including asset managers, labor organizations and other plan sponsors, consumer groups, service providers, and investment advisers unhappy with the rule, the Labor Department has announced that it will not enforce the prior rule pending further review. https://www.dol.gov/newsroom/releases/ebsa/ebsa20210310 See more

Interesting article on our time and how best to use it! By Chris Taylor for Mashable. "With the lowest possible expectations, we paradoxically find it easier to take pride in our accomplishments for as many weeks as remain." https://mashable.com//time-management-book-four-thousand-w #productivity

Chris Garrah at McMillan LLP in Toronto reports that, after a ten-year wait, Ontario has finally passed the Ontario Nonprofit Corporations Act (ONCA). The announcement is good news as ONCA will provide a modern legislative framework for Ontario’s not-for-profit corporations. The Ministry of Government and Consumer Services has announced that a new online Ontario Business Registry will be launched on October 19, 2021, and advised that ONCA will become effective on that same date. https://mcmillan.ca//ontario-not-for-profit-corporations-/

Foundation Investing Flashback: Six years ago, in 2015, the IRS legalized mission-related investing by private foundations when it stated in Notice 2015-62 that a private foundation investment is not a prohibited jeopardizing investment under Section 4944 where (a) the investment has a special relationship or special value to the foundation (e.g., where the investment furthers the foundation’s charitable purpose) and (b) the board exercises ordinary business care and prud...ence in making the investment under state law (i.e., they act responsibly, in good faith, and comply with UPMIFA rules and donor restrictions if any.) This gave private foundations the green light to make (and instruct their advisors to make) investments in companies and funds that generate positive and social and environmental impacts alongside financial returns, even if such investments do not qualify as program-related investments, or simply to avoid certain industries or activities that generate negative social or environmental impacts, even if profitable. Six years later, it is a settled law that foundation directors and managers can take social and environmental factors into account when making investment decisions. In fact, they may prioritize social return over profit. So long as social return is a desired outcome, the risks, and tradeoffs, if any, are discussed by the board, and the ultimate objective furthers the foundation’s charitable purpose. #ESG #foundations #impact #impactinvesting See more

Teaching Seniors to Use Technology Older Adults Technology Services (OATS) is a fast-growing nonprofit organization that changes the way people age by teaching seniors how to use technology and empowering them to harness the power of technology to change their lives. From online banking to Zooming, OATS is making sure older adults are not left behind as the world goes digital and online, a process that has only accelerated during the pandemic. OATS has just announced that it is now affiliated with AARP, and will be bringing its award-winning programs, including Senior Planet, to many more older adults across the country, including AARP's network of 38 million members. Bromberger Law was pleased to be OATS’ legal advisor on the transaction. See the announcement here. To learn more about OATS and its programs, visit oats.org

Federal Relief for Nonprofits? The National Council of Nonprofits is asking US nonprofit organizations to sign a letter to the President and Congress seeking to have the needs of America’s charities addressed in upcoming legislation. Among other things, they ask for financial relief for charities whose support has been negatively affected by the pandemic, increased charitable giving incentives, and aid to state and local governments that fund local programs. This support could be vital to many programs' abilities to continue providing critical services in hard-hit areas and, ultimately, to help with the recovery. For more information or to sign the letter, go to: https://www.councilofnonprofits.org/nonprofit-coalition-let

New rules simplify corporate deductions for disaster relief. Today, the IRS explained how corporations might qualify for a new 100% limit for non-COVID-related disaster relief contributions & offered a temporary waiver of the recordkeeping requirement for corporations otherwise qualifying for the increased limit. The Taxpayer Certainty & Disaster Tax Relief Act of 2020 temporarily increased the limit for contributions paid in cash for relief efforts in qualified disaster area...s up to 100% of a corporation's taxable income. Qualified contributions must be paid by 1/1/20-2/25/21. Cash contributions to most charities qualify for this increased limit, but those made to a supporting org or establishing or maintaining a DAF do not qualify. Under the new law, qualified disaster areas are those in which a major disaster has been declared by Section 401 of the Stafford ActCOVID disaster declarations not included. However, it includes other disaster declarations made by the President 1/1/20-2/25/21, including wildfires, hurricanes, and storms & inaugural unrest. For qualifications for the increased limit, visit FEMA.gov. https://www.irs.gov//new-law-increases-deduction-limit-for See more

Donor Privacy At Risk? Several states, including CA and NY, have recently passed laws requiring that charities raising funds from the public reveal the names, addresses, and other personal information about their donors to increase transparency. This information has long been provided to IRS, where it is protected. However, state officials (including Vice President Harris when she was the Attorney General of California) are trying to collect the same information without much ...concern for privacy safeguards. State officials recognize the danger but say they need this information to prevent fraud and are willing to accept the risk. On the other hand, charity advocates are concerned these rules will have a chilling effect on donors who wish to support unpopular causes or who don’t wish their charitable giving to become a matter of public record. They are fighting the new rules as an unconstitutional infringement of free speech and an abuse of the state’s police power. The U.S. Supreme Court has taken the case and will hear it later this year. If this is an issue of interest to you, visit the Philanthropy Roundtable for more information: https://www.philanthropyroundtable.org//donor-privacy-expa See more

Biden administration takes steps to possibly reverse Trump's decision to make it more difficult for fiduciaries of retirement plans to direct money to ESG-focused funds. The so-called Financial Factors in Selecting Plan Investments Rule, opposed by many in the impact investing world, including Bromberger Law, was the only Department of Labor rule specifically listed for review by President Joe Biden’s transition team. #ESG #impact #impactinvesting https://www.bloomberg.com//biden-administration-considers-