Thank you for choosing to stay informed on the law of not-for-profit organizations in Massachusetts with this 2020 edition. Inside, you will find new topics, including the following:
IRS Form 1023.
Some questions have been relocated and reformulated, and new questions have been added, on topics such as the National Taxonomy of Exempt Entities (NTTE) Code, the making of grants, loans, or distributions to organizations not recognized by the IRS as tax exempt, a new definition of "insiders", and more.
Protections for nonprofits' volunteers.
See chapter 5 for detailed discussion of a 2019 ruling by the Supreme Judicial Court that both clarified and expanded protections for volunteers and directors, providing "qualified immunity from suit." Read how this ruling relates to personal liability under the Massachusetts Wage Payment Act (Wage Act) for nonpayment of wages—with its attendant automatic treble damages provision.
Overhead and management.
Chapter 7 adds discussion of a changing metric reflecting a broader, more nuanced and mission-focused way of understanding nonprofit success. It cites a joint letter to U.S. nonprofits from three leading information sources on nonprofits—BBB Wise Giving Alliance, GuideStar, and Charity Navigator.
Evaluating the chief executive officer.
Chapter 7 also adds a new section regarding a board's responsibility to evaluate and compensate its chief executive.
Find a 2019 decision of the Tax Court retroactively revoking the tax exempt status of a fundraising organization on the grounds that it was primarily engaged in generating sales leads.
Unrelated business taxable income.
See chapter 11 for information on 2020 proposed IRS regulations that address how to implement siloing of unrelated business taxable income based on methods that will often use the North American Industry Classification System (NAICS).
In chapter 12, find discussion of a recent case where the Appellate Tax Board denied exemption for particular tax years on jurisdictional grounds under G.L. c. 59, § 64 for failure to timely pay amounts due, while simultaneously granting exemption on the same property for other tax years.
We at MCLE trust that you will find this new material timely, practical, and valuable in your nonprofit law practice and useful in keeping your law library current.
Maryanne G. Jensen, Esq.,
MCLE Director of Publications