Tuesday, March 17, 2009

New York Nonprofits Making Political Donations - Risk Of Losing Nonprofit Status

The New York Times has pubished an article regarding tax-exempt charities giving contributions to political candidates and paying for tickets to politicians' fundraisers.

According to the article, a review of New York campaign-finance and federal tax records shows that at least 81 tax-exempt charities have given contributions to legislative candidates since 2005, with some organizations giving more than once to multiple candidates. The article further noted that there was a relationship between the contributions and the politicians who helped the charities secure state money.

Federal law prohibits nonprofits classified as 501 (c) 3 organizations from making political donations or participating in campaigns. Those that do risk losing their tax-exempt status. This is just one of the many rules which govern the operations of nonprofits which provides a trap for the unwary.

For the article:

Questions or comments should be directed to: hm@moravecslaw.com or (626) 793-3210.
Henry (Hank) Moravec is a partner at Moravecs, A Professional Law Corporation, in San Marino, California. He focuses his practice on Estate Planning, Trust and Probate Administration, Beneficiary and Trustee Representation, Tax Law, and Nonprofit Law. He represents clients throughout Southern California and his office is conveniently located for clients in the Los Angeles, Pasadena and surrounding areas. The firm's website is: http://www.moravecslaw.com/