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Whistleblower Protections in Illinois and Beyond
The Illinois Whistleblower Act, as recently amended, provides enhanced employee protections to those who report wrongdoing at their workplace. What do nonprofits need to know?
The Illinois Whistleblower Act provides enhanced employee protections to those who report wrongdoing at their workplace. What do nonprofits need to know?
HIPAA and Medical Records for Nonprofits
Do nonprofits holding medical information fall under HIPAA coverage? Maybe yes, maybe no, but nonprofits must be careful, especially those nonprofits that provide medical services to patients or otherwise hold medical information.
Do nonprofits holding medical information fall under HIPAA coverage? Some nonprofits are covered entities and must comply with stringent HIPAA requirements.
Nonprofit Founder Compensation
How much should nonprofit founders be compensated? Founders often receive only modest compensation in order to advance the organization’s mission, especially in its early years. What employment-related considerations present long term?
How much should nonprofit founders be paid? A modest compensation approach can be beneficial, but may lead to employment-related challenges long term.
Nonbinding Agreements: LOIs, Term Sheets, and MOUs
How can nonbinding agreements help nonprofits in contract negotiations? Should nonprofits use LOIs, term sheets, or MOUs?
How can nonbinding agreements help nonprofits in contract negotiations? Should nonprofits use letters of intent, term sheets, or memoranda of understanding?
New State Data Privacy Laws Affect Nonprofits
Several new state data privacy laws take effect this year that impact nonprofits. What do nonprofit leaders need to know about staying legally compliant? Learn more about specific state laws and key recommended measures.
Several new state data privacy laws impact nonprofits. How should leaders proactively address legal compliance? Learn more about key recommended measures.
South Carolina HR Bootcamp
W&O Partner Jillian Nelson is speaking at The Church Network’s 2025 Human Resources Bootcamp hosted in Greenville, Colombia, and Charleston, South Carolina from March 25-27.
What should nonprofits know about HR compliance and employment law updates? W&O Partner Jillian Nelson speaks at The Church Network's South Carolina event.
Child Safety: Evaluating Negative Screening Results
When it comes to nonprofit programs involving children, worker screening is crucial. Both paid staff and volunteers should be screened to improve safety and reduce risk.
Effective child safety screening may warrant additional risk assessment, such as for further questions for applicants and references, and other investigation.
Charitable Receipts: Why, When, and What to Include
How should Section 501(c)(3) nonprofits acknowledge donors’ charitable contributions? A thank you note or small gift is certainly a kind gesture of gratitude, but understanding a donor’s tax reporting requirements may best demonstrate care.
When and why do 501(c)(3) nonprofits need to provide charitable receipts to donors? Learn about IRS requirements for cash and noncash contributions.
Ministry Conference Workshops
W&O partner attorney Sally Wagenmaker will present nonprofit ministry workshops on March 8, 2025, at the 2025 annual Church Ministries Conference (“CMC”), in Grand Rapids, Michigan.
W&O partner attorney Sally Wagenmaker will present nonprofit ministry workshops at the 2025 Church Ministries Conference in Grand Rapids, Michigan.
AI and Data Privacy
How can nonprofit leaders best comply with legal parameters for using artificial intelligence as part of their operations?
How do nonprofits stay legally compliant while using artificial intelligence in operations? Attorney Paul Winters addresses data privacy at the BMWL Conference.
Nonprofit Legal Check-Up
Is your nonprofit legally compliant? A legal check-up can help through corporate governance, tax, risk management, and employment legal considerations.
Is your nonprofit legally compliant? A legal check-up can help through corporate governance, tax, risk management, and employment legal considerations.
Corporate Transparency Act Update
On December 23, 2024, the Fifth Circuit Court of Appeals halted the trial court’s injunction of the Corporate Transparency Act. For now, BOI reporting thus remains in place.
What do nonprofits need to know about beneficial owner information reporting to FinCEN? Learn about critical updates regarding the Corporate Transparency Act.
Disclosing Compensation
Must employers disclose compensation details during the hiring process? Effective January 2025, Illinois' Equal Pay Act amendments warrant certain disclosures.
Must employers disclose compensation details during the hiring process? Effective January 2025, Illinois' Equal Pay Act amendments warrant certain disclosures.
Rolling Back the Salary Threshold Increase
For nonprofits grappling with the mandated salary threshold hike – relief is here! On November 15, 2024, a Texas federal judge issued a sweeping decision restoring the pre-July 1, 2024, $684 weekly salary threshold amount.
The DOL salary threshold increase is invalidated nationwide thanks to a November 2024 Texas court ruling. Learn about FLSA white-collar exemption litigation.
Personal Security as Fringe Benefit
When and how should nonprofit leaders provide personal security for employees? May personal security expenses qualify as a non-taxable fringe benefit treatment?
When and how should nonprofit leaders provide personal security for employees? May personal security expenses qualify as a non-taxable fringe benefit treatment?
Exculpation
Can a nonprofit limit its leaders’ individual liability? Should it? Learn about legislative trends and how nonprofits may use exculpation as a risk-mitigation tool.
May nonprofits limit individual liability of their officers and directors? Learn about exculpation as a risk-mitigation tool and related legal developments.
Minnesota: Employer Alert
All Minnesota employers must properly register with the Minnesota Unemployment Insurance Program for purposes of government-provided paid leave benefits. Wage reporting obligations start October 31, 2024.
How do Minnesota nonprofit employers register a paid leave only account and complete wage reporting with the Minnesota Unemployment Insurance Program?
Mandatory Fundraising Disclosures
Many states’ charitable solicitation statutes require nonprofits to include disclosure language on charitable solicitation materials. These state-specific disclosure obligations provide key information to donors, essentially as a consumer protection
What information must be disclosed when soliciting contributions? Learn how nonprofits can comply with state regulated mandatory fundraising disclosures.
Unique Expressions of Churches - Presentation
What does it mean to be a religious organization under federal tax exemption law? Attorneys Jonathan Hwang and Meaghan Falkanger addressed this question at length recently, at the ABA Business Law’s September 2024 meeting.
What does it mean to be a religious organization under federal tax exemption law? Attorneys Jonathan Hwang and Meaghan Falkanger address the legal aspects.
Answering Your Overtime Questions - ECFA Publication
Attorney Sally Wagenmaker recently contributed to an updated version of the Evangelical Council for Financial Accountability (ECFA)’s e-book on “Answering Your Overtime Questions."
Attorney Sally Wagenmaker recently contributed to the Evangelical Council for Financial Accountability's e-book on “Answering Your Overtime Questions."
Exempt Salary Threshold Update
How does Mayfield v. U.S. Department of Labor inform nonprofit employer best practices regarding the FLSA exempt salary threshold increases?
How does Mayfield v. U.S. Department of Labor inform nonprofit employer best practices regarding the FLSA exempt salary threshold increases?
Integrating Sex Offenders Responsibly
How can churches and nonprofits balance the desire to integrate sex offenders, within worship and other activities, considering their legal responsibilities and risk mitigation concerns?
How can churches balance the desire to integrate sex offenders, within worship and other activities, considering legal and risk mitigation concerns?
Election Year Dos and Don'ts
To what extent may Section 501(c)(3) nonprofits engage in political advocacy? Should they refrain from certain communications, such as for their social media accounts and special event speakers?
To what extent may Section 501(c)(3) nonprofits engage in political advocacy? Which activities are viewed as legally prohibited or permissible by the IRS?
Exempt Salary Thresholds: Pivotal Court Ruling
The State of Texas isn’t bound by the DOL’s exempt salary threshold increase, per a new court ruling. Is that a bellwether for other employers too?
The State of Texas isn’t bound by the DOL’s exempt salary threshold increase, per a new court ruling. Is that a bellwether for other employers too?
Illinois: New DEI Disclosures
Effective January 1, 2025, the newly amended Illinois Not-For-Profit Act requires new public DEI disclosures of officers and directors for certain nonprofits.
Effective January 1, 2025, the newly amended Illinois Not-For-Profit Act requires new public DEI disclosures of officers and directors for certain nonprofits.
Pre-Tax Educational Benefits
Should nonprofits offer pre-tax educational benefits to employees? What conditions apply the Internal Revenue Code, and what are the best options?
Should nonprofits offer pre-tax educational benefits to employees? What conditions apply the Internal Revenue Code, and what are the best options?
Employee vs. Independent Contractor
Correctly distinguishing between employees and independent contractors can be tricky. What should responsible nonprofits do when the line seems blurred?
Understand the legal differences between employees and independent contractors for nonprofits and ensure compliance. Learn more about employment law.
Property Tax Exemption - Webinar
What is legally required for property tax exemption under Illinois law? Is 501(c)(3) status enough? Avoid common pitfalls and learn more in an educational webinar presented by attorney Sally Wagenmaker, courtesy of Women's Property Tax Association..
What is legally required for property tax exemption under Illinois law? Is 501(c)(3) status enough? Avoid common pitfalls and learn more through this webinar.
Chicago: Paid Sick and Other Leave Update
Effective July 1, 2024, the vast majority of employees working in Chicago will be covered under the new Paid Leave and Paid Sick and Safe Leave Ordinance.
Effective July 1, 2024, the vast majority of employees working in Chicago will be covered under the new Paid Leave and Paid Sick and Safe Leave Ordinance.
Mandatory Reporting - Webinar
Evangelical Council for Abuse Prevention (ECAP) has made available a webinar, addressing mandatory reporting laws, clergy-penitent privilege, and related communications in connection with child abuse issues.
Evangelical Council for Abuse Prevention's webinar addresses mandatory reporting, clergy-penitent privilege, and communications related to child abuse issues.
Handling Threats and Disturbances
This article, third in a blog series on church and nonprofit safety, focuses on response and management of precipitating threats and disturbances – namely, how should leaders handle these situations proactively and effectively?
How should nonprofit and religious leaders respond to security threats and disturbances? What is legally permissible, appropriate, and will mitigate liability?
Now Press “Record” - or Not?
In today’s virtual world, nonprofits have experienced significant changes in how they operate their board governance, conduct staff meetings, carry out fundraising events, promote membership engagement, and handle other program activities.
To what extent are nonprofits able to legally record meetings and other activities while mitigating any associated risks in today's virtual world?
Video Camera Footage
How long should nonprofits retain security and other video recordings? Key considerations inform policy and exceptions, such as litigation holds.
How long should nonprofits retain security and other video recordings? Key considerations inform policy and exceptions, such as litigation holds.
Exempt Salary Thresholds
Salary thresholds for employees qualifying for the “white-collar” and the ‘highly compensated” exemption will soon increase, as a result of a finalized rule issued by the U.S. Department of Labor.
Salary thresholds for the “white-collar” and the ‘highly compensated” employee exemption will soon increase, as a result of the U.S. Department of Labor ruling.
Buettner Ruling: Section 501(c)(3) and Title IX
In the Buettner case, the Court of Appeals resoundingly rejected the argument that Title IX applies to all Section 501(c)(3) organizations solely on the basis that such tax-exempt status equates receipt of “federal financial assistance.”
Buettner Ruling: 501(c)(3) tax-exempt status does not constitute receipt of federal financial assistance for purposes of Title IX applicability.
Purpose and Process Matter: Lessons from Litigation
Our law firm recently concluded litigation acutely illustrating the serious problems that can be caused from nonprofit merger deficiencies and power struggles.
How and when should nonprofits pursue major corporate changes? Learn how to avoid litigation pitfalls in nonprofit mergers from a recent court case.
A Sanctuary Secured: 7 Essential Steps
As the second article in our series on church safety and security, it is an honor and pleasure to publish the following guest blog from Simon Osamoh, who is an expert in this field.
How should church leaders navigate worship facility safety and security? Our blog series is aimed a equipping religious organizations with safety resources.
501(c)(3) Status = Title IX Financial Assistance?
The Fourth Circuit’s pending Buettner case addresses whether 501(c)(3) tax-exempt status alone equates to Title IX’s definition of financial assistance.
The Fourth Circuit’s pending Buettner case addresses whether 501(c)(3) tax-exempt status alone equates to Title IX’s definition of financial assistance.
Keeping Church Safe
How can ministry leaders best promote safety and address security concerns in light of increased hostility and violence at religious gatherings?
How can ministry leaders best promote safety and address security concerns in light of increased hostility and violence at religious gatherings?
Corporate Transparency Act: Nonprofit Compliance
The U.S. Corporate Transparency Act requires the provision of “beneficial owner” information to FinCEN. Surprisingly, it applies to certain nonprofits.
The U.S. Corporate Transparency Act requires the provision of “beneficial owner” information to FinCEN. Surprisingly, it applies to certain nonprofits.
New Partner Announcement: Clyde Taylor
We are thrilled that attorney Clyde Taylor has become a W&O partner, as of January 1st, 2024. Clyde leads our Dispute Resolution practice group, helping clients resolve governance issues and handling nonprofit litigation.
We are thrilled that attorney Clyde Taylor, lead of our Dispute Resolution practice group, has become a W&O partner as of January 1st, 2024.
Arbitration Employment Clauses
Should nonprofit employers include mandatory arbitration clauses in employee agreements or use ADR agreements more generally? Are they legally enforceable?
Learn about arbitration clauses in nonprofit employment contracts including legal implications and compliance. Explore insights on employment law.
Faith’s Law: Sexual Misconduct in Schools
Faith’s Law squarely addresses educator sexual misconduct of K-12 students in school environments. How do Illinois schools comply with resulting obligations?
Faith’s Law squarely addresses educator sexual misconduct of K-12 students in school environments. How do Illinois schools comply with resulting obligations?
International Grantmaking with DAFs
Donor-advised funds (“DAFs”) are one of the most popular philanthropic vehicles in the United States. On November 13, 2023, the IRS released its first of a few anticipated proposed regulations offering much needed clarifications on DAFs.
Donor-advised funds are one of the most popular philanthropic vehicles in the United States. How will IRS proposed regulations further shape their use?
Chicago’s Paid Leave Ordinance on Hold
Chicago’s new Paid Leave and Paid Sick and Safe Leave’s effective date is delayed to July 1, 2024, pending an amended ordinance release.
On Hold: Chicago's new Paid Leave and Paid Sick and Safe Leave's effective date is delayed to July 1, 2024, pending an amended ordinance release.
Increasing FLSA Exempt Salary Thresholds
The U.S. Department of Labor (“DOL”) has issued a proposed rule which could jeopardize the applicability of certain employees’ “exempt” status for purposes of overtime and minimum wage requirements.
Will the salary threshold for the white-collar exemption be increasing soon? The U.S. Department of Labor issued a proposed rule aimed at doing so.
Employment Law Alert
Thus far, 2023 has proved a banner year for new employment-related legal developments. What do churches and other nonprofits now need to consider?
Thus far, 2023 has proved a banner year for new employment-related legal developments. What do churches and other nonprofits now need to consider?
Undue Hardship Legal Developments
Legal developments strengthen employees’ religious and pregnancy-related rights and shape “undue hardship” considerations. How should employers respond?
Legal developments strengthen employees’ religious and pregnancy-related rights and shape “undue hardship” considerations. How should employers respond?
Guardrails Against Grooming
Tragically, grooming of children happens. The nonprofit sector is not free from these harmful tactics, aimed at eventually causing sexual harm. Nonprofit leaders thus need to proactively be on guard.
Tragically, grooming of children happens. The nonprofit sector is not free from these harmful tactics, aimed at eventually causing sexual harm.
IRS Public Inspection Requirements for Charities
May nonprofits keep their records private from the general public? Yes and no. Disclosure of IRS Form 990s and Form 1023 is often required, though not always.
May nonprofits keep their records private from the general public? Yes and no. Disclosure of IRS Form 990s and Form 1023 is often required, though not always.
LLCs and Nonprofits
Should nonprofits use LLCs in connection with their operations? For nonprofit leaders seeking creative, cost-effective, and risk mitigation options, the LLC option may warrant a careful evaluation.
Understand how LLCs can be structured for nonprofits including legal benefits and compliance requirements. Learn more about nonprofit governance.
Employer Alert: Stericycle’s Impact on Non-Unionized Workplaces
This article provides background of the National Labor Relations Board, summarizes the Stericycle decision, addresses jurisdictional exclusions for religious employers, focuses on employee handbooks and policies, and provides practical guidance.
The National Labor Relations Board recently issued a far-reaching decision in Stericycle, Inc. which provides an updated legal standard for employees.
Napa Legal’s Faith & Freedom Index
Napa Institute Legal Foundation recently issued an evaluation of all U.S. jurisdictions, scoring them on factors affecting faith-based Section 501(c)(3) nonprofits.
How "friendly" are U.S. jurisdictions to nonprofits? Napa Legal's Faith & Freedom Index scores states on religious freedom and regulatory freedom aspects.
2023 US Data Privacy Laws Impact Nonprofits
Nonprofits are advised to be especially attentive to emerging data privacy requirements. Six states adopted comprehensive data privacy laws in 2023.
Learn about 2023 US data privacy laws and their impact on nonprofit organizations with compliance tips. Discover insights on legal obligations.
Employers’ Religious Beliefs and SOGI
The Braidwood appellate ruling clarifies tensions between employment discrimination laws and religious freedom protections for private employers under RFRA.
“Piercing the Corporate Veil” of Nonprofits
Explore legal protections against piercing the corporate veil for nonprofits including liability risks and safeguards. Discover insights on governance.
Tax-Exempt Reinstatement After Auto-Revocation
Learn how to reinstate nonprofit tax-exempt status after IRS auto-revocation with steps for compliance. Explore guidance on nonprofit taxation.
Churches, Illegality, and 501(c)(3) Status
Understand 501(c)(3) compliance for churches including risks of illegal activities and IRS rules. Learn more about nonprofit legal obligations.
When Charitable Gifts are Restricted – or Not
Explore restricted vs. unrestricted charitable gifts for nonprofits including legal and IRS compliance. Discover insights on donation management.
Indemnification Clauses in Nonprofit Contracts
“Indemnification” – Many contracts contain this mouthful of a word, but what does it mean? And how important is it for nonprofits? This article addresses how indemnification affects nonprofits’ contractual arrangements.
Explore indemnification clauses in nonprofit contracts including legal protections and compliance. Learn more about nonprofit risk management.
Nonprofit Garnishment FAQs
What is a wage garnishment? What should a responsible nonprofit employer do upon receipt of a wage garnishment notice?
It is estimated that 7% of individuals in the U.S. are subject to a wage garnishment. What should nonprofit employers do upon receipt of such notice?
Ministerial Housing Allowances: Eligibility, Applicability, and Safeguards
Understand ministerial housing allowances including IRS eligibility and compliance requirements. Explore insights on nonprofit tax benefits.
Employer Alert: New Chicago Ordinance Expanding Sexual Harassment Protections
Nonprofit leaders who want to protect their workforce against sexual harassment wisely adopt anti-harassment policies, implement training, and take other proactive measures to honor the safety and well-being of their employees.
Q&A: Nonprofit Corporate Annual Reports
For ongoing nonprofit legal compliance, what annual reports need to be filed? Three key types of reports may be required, depending on the specific state involved and the nonprofit’s particular activities: (1) IRS – a version of the IRS Form 990 ...
Incident Reports: Responding Promptly and Properly
What happens when a person is injured in connection with a nonprofit’s activities? Two correct answers are (1) care should be given to the injured person; and (2) an incident report should be completed. Additional answers may include mandated rep...
Making Room: UBIT and Third-Party Facility Usage
If your nonprofit provides facility usage to another organization, could any fees charged then result in tax liability? This question of federal unrelated business income tax often becomes relevant to many nonprofit property owners, as they consi...
Handling a Child Abuse Allegation – Webinar Link
Effectively handling abuse allegation warrants careful proactive planning, not just reacting when the unthinkable happens. In churches and other childcare settings this means taking critical steps like worker screening, training, attentiveness to...
Aegis for Dreams: A Tax-Exempt Success Story!
All’s well that ends well – at least according to Shakespeare and now Aegis for Dreams Foundation and its journey toward Section 501(c)(3) tax-exempt recognition. The Foundation is a self-described educational nonprofit that is producing an histo...
Changing Times and Contract Hot Spots
No doubt, our recent times have been epochal – significantly affecting individuals, nonprofits, and much more. We’ve seen a pandemic, racial tension, mass shootings, protests, war, incredible social media influence, and increasing division on soc...
Serving Private and Public Interests? Advantages and Limitations of Benefit Corporations
Is it possible for a business to both maximize value for its owners and prioritize social improvement? Traditionally, business founders have been forced to choose one or other. Taxable limited liability companies (LLCs), partnerships, and corpora...
Making Room: Third-Party Facility Usage Policy
Does your organization own real estate that could be used by others? Perhaps your organization’s building or other property is currently occupied in whole or in part by other occupants? While the nonprofit sector has occupants, usage fees, and re...
Religious Tax Reclassification for Public Charities
Churches, synagogues, mosques, temples, and other houses of worship have long enjoyed Section 501(c)(3) public charity status, with resulting exemption from IRS Form 990 filings, availability of clergy housing allowances, and religious liberty pr...
Nonprofit Sales Tax Exemption - Simple or Complex?
“Can we get sales tax exemption?” Our law firm’s State Compliance and Tax Practice Group handles this question on a regular basis, usually for a specific state and increasingly with an eye toward online activity and multi-state legal compliance. ...
Multicorporate Structuring Basics for Nonprofit Leaders
Innovative nonprofit leaders frequently leverage so-called “multicorporate structures” to achieve multiple beneficial objectives. May nonprofit corporations do so, such as through forming subsidiaries? If so, when, and why? What are the liability...
What - Another Tax? Nonprofits' State "Franchise" Taxes and Related State Tax Compliance
It is indeed a joyful day when a nonprofit receives the anticipated IRS determination letter, recognizing its tax-exempt status. But note: such status is under federal law and only for income tax liability generally. What state tax considerations...
A Walk Through the IRS Forms 1024 and 1024-A: For Nonprofits Outside of Section 501(c)(3)
Forming a new nonprofit other than a Section 501(c)(3) public charity or private foundation? Submitting the right tax-exemption application is critically important! More specifically, organizations other than public charities or private foundatio...
Life Cycle of a Nonprofit Corporation
“From our birthday, until we die, / Is but the winking of an eye." - William Butler Yeats How exciting to start a nonprofit, to dream about all the good to accomplish in the world! The starting passion, joy, and energy drives nonprofit founders t...
Illinois’ Non-Compete Employment Law
May employers prospectively restrict employees from “competing” – that is, from obtaining future employment that could harm their current employers - such as in terms of sales, market share, and other measurable organizational success? Less so no...
Aegis for Dreams: Lessons from IRS’s Denial of Historical Filmmaking Nonprofit’s Section 501(c)(3) Application
What suffices for “educational,” to garner IRS approval of Section 501(c)(3) status? Apparently, the IRS looks askance on educational filmmaking that involves commercial overtones and private intellectual property ownership.
Some—Not All—Nonprofits Are Subject to HIPAA Requirements
All nonprofits should maintain confidentiality of medical information related to their employees, program participants, and volunteers. Is such information subject to “HIPAA?” For many organizations, the answer is no – HIPAA does not apply across...
Annual Anti-Harassment Training - Good Idea!
With the year’s end fast approaching, now is a good time to reflect on many things – and what better than nonprofit legal compliance and related best practices? Of course! One key area is annual anti-harassment training, which is legally required...
Employer Alert: Illinois "Secure Choice” Mandatory Retirement Program Expands
Does your nonprofit offer a retirement plan? In Illinois, the “Secure Choice Saving Program Act” requires larger employers to participate in a state-sponsored retirement program, but not if they offer their own retirement plans. The Act thus esse...
How China’s New Data Privacy Framework Affects U.S. Nonprofits
Nonprofits reaching Chinese donors, employees, contractors, newsletter and program service recipients, and other stakeholders face new legal challenges in the handling of such stakeholders’ personal information. Adopted on August 20, 2021, China’...
Political Action Committees: A Horse of a Different Color?
When nonprofit leaders think about engaging in political campaign activities, it is crucial to get taxonomy right in terms of the prospective organization’s development. That’s not only “tax”-onomy – relating to tax-exemption considerations, but ...
Giving Globally Part 2: Expenditure Responsibility
Imagine a newly formed nonprofit is organized to help end poverty internationally. The foundation’s board aims to accomplish its charitable purpose in many different ways, including funding local organizations in foreign countries. The grant-rela...
First Minutes: Taking the Nonprofit’s Corporate Foundational Steps
How does a new nonprofit move forward after incorporation? The practical answer is through strong leadership and significant effort! The legal answer is through “First Minutes,” a written corporate resolution reflecting a nonprofit corporation’s ...