NONPROFIT ORGANIZATIONS—SYLLABUS AND GUIDELINES by hvo10642

VIEWS: 72 PAGES: 9

									Spring 2010
Professor Angelia Dickens
Fordham Law School

       NONPROFIT ORGANIZATIONS—SYLLABUS AND GUIDELINES

Course Coverage:
This is a course in the legal issues raised in governing a nonprofit organization, primarily
a public charity. We will focus on the appropriate considerations of State corporate and
trust law and Federal tax law, as well as some State tax issues and Federal election law.
We will also study First Amendment protections relating to association and charitable
solicitation. Additional legal issues implicated in running a nonprofit, such as
employment law and torts, are generally beyond the scope of this course.


REQUIRED MATERIALS

Nonprofit Organizations (3d edition, Foundation Press, 2006) by James J. Fishman and
Stephen Schwarz ("Fishman and Schwarz")
Supplemental Materials (links to supplemental materials are available on the Course Website)


CLASS REQUIREMENTS

Classes are held Tuesday from 7:55 p.m. to 9:45 p.m. ALL MATERIALS USED TO
PREPARE FOR CLASS SHOULD BE BROUGHT TO CLASS.
Attendance at classes is required and an essential course component. The course will be
held as a seminar, with active participation of the students expected. Any student who
is unable to attend a class should notify the instructor, either at a prior class, or by
telephone at (917) 699-4858, or by email at angelia.dickens@yahoo.com. Please leave a
voicemail message if the instructor is not available when you call.


GRADING

Each student will prepare one in-depth paper on a subject, issue, or problem of his or her
choice, related to the class subject matter. The paper must be discussed and cleared in
advance with the instructor. On April 30th, the last day of classes, each student will
submit a 15-20 page double spaced formal legal paper, with proper citations and
appropriate use of footnotes or endnotes.

Attendance and class participation: 20% of grade
15-20 page final written presentation of project: 80% of grade
JANUARY 12

INTRODUCTION

Required Preparation:
(1)  Nonprofit Organizations, James Fishman and Stephen Schwarz ("Fishman and
Schwarz"): pp. 2-4, 43-60


JANUARY 19

TAX EXEMPTION FOR CHARITABLE ORGANIZATIONS (INTRODUCTION,
RATIONALE, AFFIRMATIVE REQUIREMENTS)


Required Preparation:
(1)  Fishman and Schwarz: pp. 320-365


JANUARY 26

TAX-EXEMPT STATUS/PROCEDURE/THIRD-PARTY STANDING

Required Preparation:
(1)   Fishman and Schwarz: pp. 252-268, 400-427
(2)   IRS Form 1023
      http://www.irs.gov/pub/irs-pdf/f1023.pdf
(3)   State ex Rel. Grant v. Brown, 313 N.E.2d 847 (Oh. 1974)
(4)   Association for the Preservation of Freedom of Choice v. Shapiro, 174 N.E.2d
      487 (N.Y. 1961)
(5)   Boy Scouts of America v. Dale, 530 U.S. 640 (2000)


FEBRUARY 2

ADVOCACY, LOBBYING, AND POLITICAL ACTIVITIES

Required Preparation:
(1)   Fishman and Schwarz: pp. 500-516, 523-553, 564-570
(2)   I.R.C. § 501(h)
(3)   I.R.C. § 4911
(4)   Regan v. Taxation With Representation of Washington, 461 U.S. 540
(5)   Revenue Ruling 2007-41
      http://www.irs.gov/irb/2007-25_IRB/ar09.html
(6)   Revenue Ruling 2004-6
      http://www.irs.gov/irb/2004-04_IRB/ar10.html


                                          2
(7)   IRS investigation of the United Church of Christ
      http://www.allsaintspas.org/site/DocServer/Letter_from_IRS_to_All_Saints_Chur
      ch.pdf?docID=2541
      http://aschu.convio.net/archives/sermons/(10-31-
      04)%20If%20Jesus%20Debated.pdf
      http://www.washingtonpost.com/wp-
      dyn/content/article/2006/08/31/AR2006083100737.html
(8)   IRS Investigation of NAACP
      http://www.ombwatch.org/article/articleview/2700/1/3?TopicID=2
      http://philanthropy.com/free/update/2004/10/2004102901.htm



FEBRUARY 9


ADVOCACY, LOBBYING, AND POLITICAL ACTIVITIES (cont’d)

Required Preparation:
(1)   Fishman and Schwarz: pp. 500-516, 523-553, 564-570
(2)   I.R.C. § 501(h)
(3)   I.R.C. § 4911
(4)   Regan v. Taxation With Representation of Washington, 461 U.S. 540
(5)   Revenue Ruling 2007-41
      http://www.irs.gov/irb/2007-25_IRB/ar09.html
(6)   Revenue Ruling 2004-6
      http://www.irs.gov/irb/2004-04_IRB/ar10.html
(7)   IRS investigation of the United Church of Christ
      http://www.allsaintspas.org/site/DocServer/Letter_from_IRS_to_All_Saints_Chur
      ch.pdf?docID=2541
      http://aschu.convio.net/archives/sermons/(10-31-
      04)%20If%20Jesus%20Debated.pdf
      http://www.washingtonpost.com/wp-
      dyn/content/article/2006/08/31/AR2006083100737.html
(8)   IRS Investigation of NAACP
      http://www.ombwatch.org/article/articleview/2700/1/3?TopicID=2
      http://philanthropy.com/free/update/2004/10/2004102901.htm


REVOCATION OF TAX-EXEMPT STATUS/PATRIOT ACT AND ANTI-
TERRORISM GUIDELINES

Required Preparation:
(1)   USA v. Holy Land Foundation For Relief and Development (N.D. Tx.)
      Indictment, 2005 WL 4902463 (Nov. 30, 2005)




                                         3
(2)    KindHearts for Charitable Humanitarian Development, Inc. v. Paulson (N.D
       Ohio)
       Complaint
       http://www.aclu.org/pdfs/safefree/kindhearts_complaint.pdf
       Memorandum of Points in Support of Pls. Motion for Summary Judgment
       http://www.aclu.org/pdfs/safefree/kindheartsvpaulson_motion.pdf
(3)    Collateral Damage: How the War on Terrorism Hurts Charities, Foundations and
       the People they Serve—Executive Summary
       http://www.ombwatch.org/article/articleview/4290/1/432?TopicID=3
(5)    “Spare Change for Homeless? Cuomo See a Sham and Sues”, New York Times,
       November 25, 2009
       http://www.nytimes.com/2009/11/25/nyregion/25homeless.html



FEBRUARY 16

No Class


FEBRUARY 23

OPERATION AND GOVERNANCE OF NONPROFIT ORGANIZATIONS

Required Preparation:
 (1)  Fishman and Schwarz: pp. 140-160, 166-179, 194-206, 214-216, 219-236, 242-
252
 (2)  Right from the Start: Responsibilities of Officers and Directors of Not-for-Profit
      Corporations
      http://www.oag.state.ny.us/bureaus/charities/not_for_profit_booklet.pdf
  (3) Stern v. Lucy Webb Hayes National Training School, 381 F. Supp 1003 (D.C.D.C.
      1974)
  (4) Marsh v. Frost National Bank, 129 S.W.3d 174 (Ct. App. Tx. 2004)
  (5) Report of the Office of the Attorney General’s Investigation of the J. Paul Getty
      Trust (2006)
      http://ag.ca.gov/newsalerts/cms06/06-085_0a.pdf
  (6) Press Release of J. Paul Getty Trust (Oct. 2, 2006)
      http://www.getty.edu/news/press/center/statement06_ca_attorney_general_release
      _100206.html
  (7) IRS Form 990
      http://www.irs.gov/pub/irs-tege/form990coreform.pdf




                                           4
MARCH 2


COMPENSATION/PRIVATE INUREMENT/INTERMEDIATE SANCTIONS

Required Preparation:
(1)   Fishman and Schwarz: pp. 236-242, 276-282, 476-500
(2)   Rameses School v. Commissioner, T.C. Memo 2007-85 (Apr. 10, 2007), 2007 WL
      1061871
(3)   People v. Grasso
      Complaint, 2004 WL 4075529 (May 24, 2004)
      Opinion, 54 A.D. 180 (N.Y. App. Div. 2008)

MARCH 9

PRIVATE FOUNDATIONS

Required Preparation:
(1)   Fishman and Schwarz: pp. 751-806, 831-840, 849-855, 856-867
(2)   Robertson et al. v. Princeton University Summary Judgment Decision
      http://www.princeton.edu/robertson/documents/docs/Fiduciary_Duties_Summary
      Judgment_Decision.pdf


MARCH 16

No Class

MARCH 23

CHARITABLE CONTRIBUTIONS/RESTRICTED GIFTS/DONOR INTENT

Required Preparation:
(1)   Fishman and Schwarz: pp. 894-927, 934-944
(2)   I.R.C. § 170, 170(a)(1), (c) and (f)(8), (f)(16) (f)(17)
(3)   I.R.C. § 6115 (quid-pro-quo contributions)
(4)   Sklar v. Commissioner, 282 F.3d 610 (9th Cir. 2002)
(5)   Robertson et al. v. Princeton University Summary Judgment Decision
      http://www.princeton.edu/robertson/documents/docs/Fiduciary_Duties_Summary
      Judgment_Decision.pdf
(6)   Smithers v. St. Luke’s Roosevelt Hospital Center, 281 A.D. 127 (App. Div. 2001)
(7)   Stock v. Augsburg College, 2002 WL 555944 (Minn. App. 2002)
(8)   United Daughters v. Vanderbilt, 174 S.W.3d 98 (Ct. App. Tenn. 2005)
(9)   In the Matter of Estate of Donald Othmer, 12 Misc.3d 919 (Sur. Ct. N.Y. 2006)
(10) Dodge v. Randolph-Macon Woman’s College, 661 S.E.2d 801 (Va. 2008)
(11)   Confusion on Where Money Lent via Kiva Goes, New York Times, November 9,
2009


                                          5
       http://www.nytimes.com/2009/11/09/business/global/09kiva.html?scp=1&sq=%2
       2confusion%20on%20where%20money%20lent%20via%20kiva%22&st=cse

(12) Polytech Case

Paper Proposals Due


MARCH 30

THE UNRELATED BUSINESS INCOME TAX ("UBIT") & COMMERCIAL
ACTIVITY

Required Preparation:
(1)   Fishman and Schwarz: pp. 592-598, 616-639, 648-670
(2)   I.R.C. §§ 511(a) & (b); 512(a)(1) & (3), and (b)(1) through (12); § 513(a), (c)
(3)   Treas. Reg. § 1.501(c)(3)-1(e)
(4)   Washington Post Series on Nature Conservancy (May 4-6, 2003), Follow-up
      Investigation and Internal Changes
      http://www.washingtonpost.com/wp-
      dyn/content/article/2007/06/26/AR2007062600880_pf.html
      http://www.washingtonpost.com/wp-
      dyn/content/article/2007/06/26/AR2007062600989.html
      http://www.washingtonpost.com/wp-
      dyn/content/article/2007/06/26/AR2007062601001_pf.html

       http://www.washingtonpost.com/wp-
       dyn/content/article/2007/06/26/AR2007062601267.html

       http://www.washingtonpost.com/wp-
       dyn/content/article/2007/06/28/AR2007062800973_pf.html

       http://www.nature.org/pressroom/links/art10505.html
       http://www.nature.org/aboutus/leadership/art12214.html

       http://www.washingtonpost.com/wp-
       dyn/content/article/2007/10/01/AR2007100100769.html
   (5) “Charity’s Share from Shopping Raises Concern”, New York Times, December
       13, 2007,
       http://www.nytimes.com/2007/12/13/us/13giving.html?_r=1&sq=&st=cse"=&scp
       =1's%20share%20from%20shopping%20raises%20concern="charity=&pagewant
       ed=all
   (6) “Red Cross to Seek Donations Through Online Gifts Catalog”, New York Times,
       November 18, 2009
       http://www.nytimes.com/2009/11/18/us/18redcross.html
   (7) Girl Scouts



                                            6
   (8) “Product (RED)’s Impact is Shrouded in Vague Answers”, NonProfit Times,
       November 1, 2009
       http://www.nptimes.com/09Nov/npt-091101-2.html

   (9) “Charities Criticize Online Fund-raising Contest by Chase”, New York Times,
       December 19, 2009
       http://www.nytimes.com/2009/12/19/us/19charity.htm?_r=1




APRIL 6

THE UNRELATED BUSINESS INCOME TAX ("UBIT") & COMMERCIAL
ACTIVITY (cont’d)

Required Preparation:
(1)   Fishman and Schwarz: pp. 616-670
(2)   I.R.C. §§ 511(a) & (b); 512(a)(1) & (3), and (b)(1) through (12); § 513(a), (c)
(3)   Treas. Reg. § 1.501(c)(3)-1(e)
(4)   Washington Post Series on Nature Conservancy (May 4-6, 2003), Follow-up
      Investigation and Internal Changes
      http://www.washingtonpost.com/wp-
      dyn/content/article/2007/06/26/AR2007062600880_pf.html
      http://www.washingtonpost.com/wp-
      dyn/content/article/2007/06/26/AR2007062600989.html
      http://www.washingtonpost.com/wp-
      dyn/content/article/2007/06/26/AR2007062601001_pf.html

       http://www.washingtonpost.com/wp-
       dyn/content/article/2007/06/26/AR2007062601267.html

       http://www.washingtonpost.com/wp-
       dyn/content/article/2007/06/28/AR2007062800973_pf.html

       http://www.nature.org/pressroom/links/art10505.html
       http://www.nature.org/aboutus/leadership/art12214.html

       http://www.washingtonpost.com/wp-
       dyn/content/article/2007/10/01/AR2007100100769.html
   (5) “Charity’s Share from Shopping Raises Concern”, New York Times, December
       13, 2007,
       http://www.nytimes.com/2007/12/13/us/13giving.html?_r=1&sq=&st=cse"=&scp
       =1's%20share%20from%20shopping%20raises%20concern="charity=&pagewant
       ed=all




                                            7
   (6) “Red Cross to Seek Donations Through Online Gifts Catalog”, New York Times,
       November 18, 2009
       http://www.nytimes.com/2009/11/18/us/18redcross.html
   (7) Girl Scouts
   (8) “Product (RED)’s Impact is Shrouded in Vague Answers”, NonProfit Times,
       November 1, 2009
       http://www.nptimes.com/09Nov/npt-091101-2.html
   (9) “Charities Criticize Online Fund-raising Contest by Chase”, New York Times,
       December 19, 2009
   http://www.nytimes.com/2009/12/19/us/19charity.htm?_r=1


APRIL 13

DISSOLUTION OF A NONPROFIT

Required Preparation:
(1)   Fishman and Schwarz: pp. 106-139

CHARITABLE SOLICITATION/FIRST AMENDMENT PROTECTION

Required Preparation:
(1)   Fishman and Schwarz: pp. 276-84, 289-318
(2)   State ex Rel. Grant v. Brown, 313 N.E.2d 847 (Oh. 1974)
(3)   Association for the Preservation of Freedom of Choice v. Shapiro, 174 N.E.2d
      487 (N.Y. 1961)
(4)   Boy Scouts of America v. Dale, 530 U.S. 640 (2000)
(5)   Bob Jones University v. United States, 461 U.S. 574 (1983)


APRIL 20

CHARITABLE TRUSTS AND ESTATES/ NEW YORK REGULATION

Required Preparation:
(1)   New York Estates Powers & Trusts Law Section 8-1.4
(2)   The Regulatory Role of the Attorney General’s Charities Bureau, July 13, 2003
      http://www.oag.state.ny.us/bureaus/charities/pdfs/role.pdf
(3)   St. Joseph's Hospital v. Bennett, 281 N.Y. 115 (1939)
(4)   Matter of Smith, 75 Misc. 2d 895 (Surr. Ct., Rockland Co. 1973)
(5)   Mercury Bay Boating Club v. San Diego Yacht Club, 76 N.Y.2d 256 (1990)
(6)   Matter of Donner, 82 N.Y.2d 574, 606 N.Y.S.2d 137 (1992)

IRS, CONGRESS AND PEER GROUP ROLE IN CHARITY GOVERNANCE

Required Preparation:
(1)   Panel on the Nonprofit Sector Report


                                          8
       http://www.nonprofitpanel.org/Report/supplement/Panel_Supplement_Final.pdf
(2)    BBB Wise Giving Alliance Charity Standards
       http://www.give.org/standards/index.asp
(3)    Congressional Initiatives (a.k.a. “Grassley Love Letters”)

STATE TAX BENEFITS FOR CHARITIES

“Property Taxes” and “Sales Taxes”


APRIL 27


CONCLUSION


APRIL 30

Final Papers Due




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