The year 2021 is quickly winding up, and 2022 is just across the horizon! Our law firm’s attorneys and paralegals deeply value the honor and opportunity to assist so many amazing nonprofit organizations and their incredible leaders, and to help advance their compelling and worthwhile missions. Thank you for this opportunity to serve as trusted legal advisors providing client-focused solutions, creative approaches to advance clients’ interests, and vibrant community engagement to help the nonprofit sector flourish. As a parting gift for this year, we’d like to share some holiday cheer – and what better way than through providing links to some key W&O blog articles across our nonprofit practice groups? We hope the W&O blog will continue to be a valuable resource for you!
On July 1, 2021, the Supreme Court ruled in Americans for Prosperity Foundation v. Bonta (AFPF v. Bonta) that the California Attorney General may no longer collect Schedule B donor information from charities registered to solicit in the state. In a 6-3 decision, the Supreme Court held that “California’s blanket demand that all charities disclose Schedule Bs to the Attorney General is facially unconstitutional.” Writing the majority opinion for the Court, Chief Justice Roberts reasoned that California’s disclosure requirement violated donors’ freedom of association under the First Amendment and was not narrowly tailored to the important government interest of investigating charitable misconduct. This case represents a resounding victory to charities, and it will undoubtedly shape donor disclosure laws in other states, particularly within the context of charitable solicitation registration.
As Bitcoin and other virtual currencies become increasingly popular, Section 501(c)(3) nonprofits may encounter a novel question when a donor offers to contribute Bitcoin. Should the nonprofit accept the Bitcoin as a tax-deductible charitable contribution? The short answer is likely, “yes.” Additionally, the nonprofit’s leaders should consider acceptance of such assets as part of a gift acceptance policy. They should also determine whether to sell the donated Bitcoin promptly (like many other donated assets) or to keep it as an investment.