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The Law of Fundraising, 2017 Cumulative Supplement, 5th Edition



The Law of Fundraising, 2017 Cumulative Supplement, 5th Edition

Bruce R. Hopkins, Alicia M. Kirkpatrick

ISBN: 978-1-119-34514-5 March 2017 112 Pages


Untangle the web of fundraising regulations, with the latest updates for 2017

The Law of Fundraising is the definitive reference by the field's most respected authority, and the only book to tackle the increasingly complex maze of federal and state fundraising regulations. Updated to cover the latest changes to fundraising law for 2017, this book includes new coverage of donor-advised funds, international fundraising, and the IRS's charitable spending initiative alongside updates on Form 990, political fundraising, and more. Both state and federal regulations are covered with an emphasis on administrative, tax, and constitutional law, alongside expert discussion on compliance issues, trends, and upcoming legislation. Accessible language aids in conceptual understanding, while extensive tables of cases, IRS rulings and pronouncements, checklists, and sample forms facilitate correct application. The companion website features additional tables, appendices, IRS guidelines, and other useful documents, providing attorneys, accountants, and nonprofit professionals with a rich toolkit for ensuring compliance.

With all topics pertaining to finance under increasing federal scrutiny, laws surrounding fundraising are becoming increasingly difficult to parse. Mistakes can impact the nonprofit's bottom line, so keeping up-to-date is crucial; this book provides a comprehensive reference to the latest developments, along with expert forecasting of what is to come.

  • Understand the latest state and federal laws surrounding fundraising activities
  • Learn how the law governs Internet fundraising and other emerging issues
  • Get up to date on the new rules surrounding donor-advised funds and international fundraising
  • Examine prospective laws, regulatory trends, and how new rules impact fundraising professionals

Fundraising is critical to the nonprofit's ability to carry out their mission, yet the regulatory tangle at both the state and federal level can be a nightmare to navigate. The Law of Fundraising streamlines compliance with the latest legal developments and invaluable tools for application.

Preface vii

About the Authors ix

Chapter One Government Regulation of Fundraising for Charity 1

1.2 Charitable Fundraising: A Portrait 1

1.3 Evolution of Government Regulation of Fundraising 3

1.4 Contemporary Regulatory Climate 6

Chapter Two Anatomy of Charitable Fundraising 9

Chapter Three States’ Charitable Solicitation Acts 11

3.2 Definitions 11

3.4 Annual Reporting 11

3.20 Miscellaneous Provisions 12

3.22 Unified Registration 12

Chapter Four State Regulation of Fundraising 15

4.2 Police Power 15

4.2A Registration and Licensing Requirements (New) 15

4.2B Charitable Purposes Revisited (New) 17

4.3 Fundraising as Free Speech 17

4.8 Other Constitutional Law Issues 19

Chapter Five Federal Regulation of Fundraising 21

5.3 Charitable Gift Substantiation Requirements 21

5.6 Intermediate Sanctions 25

5.7 Unrelated Business Rules 25

5.8 Exemption Application Process 27

5.11 Public Charity Classification 28

5.13 Fundraising Compensation Arrangements 29

5.15 Commensurate Test 30

5.18 Postal Laws 30

5.22 Internet Communications 30

5.25 Political Campaign Financing 30

5.26 Fundraising Organizations 31

Chapter Six Import of Form 990 43

6.11 Schedule B 43

Chapter Eight Overviews, Perspectives, and Commentaries 45

8.8 Charity Auctions 45

8.13 Some Proposals for Relief 46

Chapter Nine Standards Enforcement by Watchdog Agencies 47

9.15 Rating the Raters 47


Appendix D Inflation-Adjusted Insubstantiality Threshold—$50 Test 49

Appendix E Inflation-Adjusted Insubstantiality Threshold—$25 Test 51

Appendix F Inflation-Adjusted Low-Cost Article Definition 53


Cumulative Table of Tax Reform Proposals Relating to Charitable Fundraising 55

Cumulative Table of Cases 67

Cumulative Table of IRS Pronouncements 77

Cumulative Table of Private Letter Rulings and Technical Advice Memoranda

Discussed in Bruce R. Hopkins’ Nonprofit Counsel 79

Cumulative Table of Cases Discussed in Bruce R. Hopkins’ Nonprofit Counsel 81

Cumulative Index 83