Investment of Funds by Calif. Charities: Law Changes in '09 [December 2008]

By Robert L Schuchard

Legislation enacted in 2008 as SB 1329, effective Jan. 1, 2009, and entitled the Uniform Prudent Management of Institutional Funds Act (UPMIFA), changes California rules governing the investment of funds by a nonprofit public benefit corporation (hereinafter, a charity). Such charities include nonprofit hospitals, colleges, museums and social service agencies, as well as some governmental entities.

It is critical that the governing boards and, in particular, finance and investment committees of charities, be aware of their responsibilities in regard to the issues addressed in UPMIFA, especially in light of current economic conditions. Responsible parties should educate themselves regarding this statute and, if needed, seek assistance from their lawyers and/or outside financial advisors. This advisory provides some background on UPMIFA, an overview of its implications, and steps charities should take to ensure compliance with new requirements.

Final Instructions to New Form 990 Released [August 2008]

By Monica Gianni and Thomas C. Schroede

The Internal Revenue Service (IRS) released Final Instructions to the redesigned Form 990 (Return of Organization Exempt from Income Tax) on August 19, 2008. This is the first major overhaul since 1979 of the information return filed annually by most exempt organizations. The IRS has also released three papers that provide background on and the rationale for the redesign of Form 990, a comparison between the old Form 990 and the new one, and an overview of the specific changes the IRS made to the draft instructions released in April.

This advisory includes a summary of the Final Instructions, a discussion of the redesigned Form 990 and the practical implications for most exempt organizations.

Soliciting Charitable Contributions in Washington State: New Legislation Changes the Rules
[July 2007]

By Jeanette Lodwig

Washington State, like most states, regulates organizations that solicit funds from the public within the state for use for charitable purposes. Most organizations are required to register with the Secretary of State’s office before soliciting funds, and must file reports regarding their solicitation activities.