Philanthropy.com:  “The federal government is asking big nonprofits like universities and hospitals to spend too much time and money reporting on their finances and other activities, nonprofit officials told members of Congress today at a hearing held by the House Ways and Means Committee. 

The wide-ranging hearing, the first in a series of sessions expected to be held by a Ways and Means subcommittee that oversees the Internal Revenue Service, also featured a call to change the standards for getting charity status so that groups would have to prove they are making a positive contribution, rather than giving them an exemption simply because they avoid things like lobbying and engaging in untaxed business activities.”

Corporate Law Report:  “According to the National Center for Charitable Statistics, there are more than 1.5 million nonprofit and tax-exempt organizations operating in the United States, from charities to industry associations to religious institutions. But whatever their structure or purpose, such organizations need to understand – and respond to – key legal and regulatory issues that are unique to not-for-profits.

For your reference, here are five areas that require ongoing attention (and legal understanding) by nonprofits:

1. Lobbying and Political Campaigning:

“Non-profit organizations are prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office. Contributing to political campaigns or public statements – verbal or written – made on behalf of the non-profit organization in favor of or in opposition to any candidate for public office, violates the prohibition against political campaign activity. Simply put, non-profit organizations are forbidden from engaging in any political campaigning activity; violating this prohibition may result in denial or revocation of tax-exempt status and the imposition of certain excise taxes.” (Political Activities By Non-Profit Educational Institutions by Fisher & Phillips LLP)”

This article called “Top 10 in 2010: Legal Risks Facing Nonprofit Boards” discusses seven of the ten risks presented at a conference sponsored by BoardSource.  All board members of nonprofit organizations should read this article.

The Nonprofit Law Blog has a detailed two part article called “Major Gifts: Considerations for Legal Compliance and Avoiding Lawsuits.”  Part 1 and part 2 are must reads for nonprofit organizations that desire large financial contributions.