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Wagenmaker & Oberly provides legal counsel to NONPROFIT ORGANIZATIONS across the nation with offices in Chicago and Charleston.

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The Changing Landscape of Unrelated Business Income Tax

The Tax Cuts and Jobs Act significantly altered our Tax Code, affecting individuals, for-profit organizations, and nonprofit organizations alike. This article discusses particular changes under the Act specific to unrelated business taxable income (“UBTI”). The new legislation provides that UBTI from each unrelated business must now be calculated separately, a requirement which is increasingly known as “siloing”. 

NONPROFIT LAW NEWSFEED

Bankruptcy Court Lacks Power to Substantively Consolidate Nondebtor, Nonprofit Entities With Archdiocese Debtor

JD Supra  In the wake of scandal-driven bankruptcies filed by nearly 20 U.S. Roman Catholic dioceses and religious orders, scrutiny has been increasingly brought to bear on the benefits and burdens that federal bankruptcy laws offer to eleemosynary (nonprofit) corporations. Nonprofits seek bankruptcy protection for a variety of reasons. In the case of the dioceses and religious orders, chapter 11 has been a vehicle to head off (at least temporarily) thousands of pending and potential clergy sexual-abuse cases seeking hundreds of millions of dollars in damages. Other nonprofit filings have been designed to restructure balance sheets bloated with debt, to facilitate sales of nonprofits' assets, to effect orderly liquidations, to give nonprofits a needed breathing spell in a climate of regulatory change and uncertainty, or to more effectively manage claims of fiduciary infractions or fraud.

Boston’s Universities Shortchange City Government

Nonprofit Quarterly  Last week, Boston residents testified at a City Council hearing demanding tax-exempt nonprofit institutions pay their “fair share” under the city’s payment in lieu of taxes (PILOT) program. A coalition of Boston nonprofits and community groups, the PILOT Action Group, indicates that the “49 largest institutions in the city have failed to pay over $77 million in promised payments under the PILOT program.”

Judge's ruling invalidates FEC regulation allowing anonymous donations to 'dark money' groups

Politico  A U.S. District Court judge on Friday issued a ruling invalidating a Federal Election Commission regulation that has allowed donors to so-called dark-money groups to remain anonymous, the latest development in a years-long legal battle that could have major implications for campaign finance.

Complaint: utility-backed group in Michigan violates tax, campaign laws

Energy News Network  A utility-backed nonprofit advocacy group playing an outsized role in Michigan’s primary election is violating federal tax and campaign finance laws, according to a complaint filed with the Internal Revenue Service.

National City Rotary Club accuses council member of mismanagement

The San Diego Union-Tribune  National City Councilwoman Mona Rios has come under scrutiny for her time as president of the National City Rotary Club, which has been around since the 1950s.

Rauner blasts Chicago mayoral candidate Willie Wilson’s cash giveaway, state says he didn’t violate campaign rules

Chicago Tribune  Mayoral candidate Willie Wilson apparently did not violate election law by handing out more than $200,000 in cash and checks Sunday to people at an event he attended with

Court thwarts Illinois agency’s attempt to tax religious ministry to underprivileged children

Alliance for Defending Freedom  An Illinois court ruled Wednesday that the state can’t tax a religious ministry to underprivileged children.

University Foundations Have Some Lessons to Learn

Nonprofit Quarterly  University support foundations exist to fund school activities, student scholarships, and faculty programs. Like most nonprofits, they raise money from alumni, other foundations, corporations, and independent donors.

Why Oversight Matters: A Tale of Two Nonprofit State Regulatory Systems

Non Profit Quarterly New Hampshire currently has eight staff assigned to nonprofits, while Vermont has one—whose office has only “specific and limited” oversight responsibilities

'Nonprofit in Name Only:' Grand Canyon University's Conversion Criticized

Phoenix New Times Two years ago, Grand Canyon University President Brian Mueller was fuming. The for-profit university had been blocked by its accreditor after an attempt to convert to a nonprofit institution. 

Bankruptcy Court Lacks Power to Substantively Consolidate Nondebtor, Nonprofit Entities With Archdiocese Debtor

JD Supra  In the wake of scandal-driven bankruptcies filed by nearly 20 U.S. Roman Catholic dioceses and religious orders, scrutiny has been increasingly brought to bear on the benefits and burdens that federal bankruptcy laws offer to eleemosynary (nonprofit) corporations. Nonprofits seek bankruptcy protection for a variety of reasons. In the case of the dioceses and religious orders, chapter 11 has been a vehicle to head off (at least temporarily) thousands of pending and potential clergy sexual-abuse cases seeking hundreds of millions of dollars in damages. Other nonprofit filings have been designed to restructure balance sheets bloated with debt, to facilitate sales of nonprofits' assets, to effect orderly liquidations, to give nonprofits a needed breathing spell in a climate of regulatory change and uncertainty, or to more effectively manage claims of fiduciary infractions or fraud.

Boston’s Universities Shortchange City Government

Nonprofit Quarterly  Last week, Boston residents testified at a City Council hearing demanding tax-exempt nonprofit institutions pay their “fair share” under the city’s payment in lieu of taxes (PILOT) program. A coalition of Boston nonprofits and community groups, the PILOT Action Group, indicates that the “49 largest institutions in the city have failed to pay over $77 million in promised payments under the PILOT program.”