A federal court of appeals has given clear direction for employers who are faced with an employee whose illness or disability makes it impossible to return to work when Family Medical Leave expires. The case exemplifies the conundrum when a number of well-meaning but sometimes contradictory federal laws apply to the fact situation. Continue reading “How Much FMLA Leave is Reasonable?”
Two Illinois nonprofits that were in the news in recent years provide good examples of ill-considered schemes to hide the compensation of their chief executives.
Executive Club of Chicago. In 2007, The Executive Club of Chicago’s long-time CEO raised eyebrows and brought on an inquiry by Crain’s Chicago Business when she formed a solely owned company and hired it as the employee base for the Club. She was the manager. Because the cost of management was not revealed in the Club’s 990s, it was impossible for anyone to tell how much she was paid. Continue reading “Avoid Risky Executive Compensation Schemes”
The IRS concluded a multi-year study of colleges and universities last year, issuing a report that is now being carefully reviewed by advisors to the nonprofit sector[1]. The IRS is using the study to send a message to the entire exempt sector, so the information we can glean from it must be considered a strong indication of IRS concerns about all 501(c) entities.
The report focuses on three aspects of IRS concern: (1) the underreporting of unrelated business income (UBI) generated by for-profit activities, (2) compensation of officers, directors, trustees and key employees, and (3) employment taxes. Continue reading “IRS Highlights Concerns with Tax on Unrelated Business Income and Compensation”
The Employer’s Dilemma
Employers wishing to hire an applicant with a criminal record are faced with a dilemma. The Department of Labor estimated in 2012 that one in three American adults has a criminal history record. Many of these individuals apply to jobs unaware that they have a record, believing their record has expired, or thinking their convictions are irrelevant to the position. This makes it increasingly important for employers to draft hiring policies that comply with applicable state and federal requirements.1 Continue reading “Job Applicants with Criminal Records Present Challenges to Employers”
The United States Tax Court issued a decision in late January of 2014 that fleshes out IRS regulations regarding appraisals of donated property. In Alli v. Commissioner (T.C. Memo. 2014-15, Jan. 27, 2014), the Tax Court upheld the IRS’ decision to disallow a charitable deduction for property donated by a Michigan taxpayer to Volunteers of America (VOA), a 501(c)(3) exempt organization. The decision provides guidance for exempt organizations that are receiving donated property and wish to give their donors some direction about how to properly document the gift. Continue reading “Appraisal of Donated Property”
In two opinions issued by the Illinois Supreme Court on March 20, 20141, the Court held that Illinois’ eavesdropping law, which criminalized the recording of conversations without all parties’ consent, was overly broad and therefore unconstitutional.
The eavesdropping law2 states that a person commits eavesdropping when he “[k]nowingly and intentionally uses an eavesdropping device for the purpose of hearing or recording all or any part of any conversation or intercepts, retains, or transcribes electronic communications unless he does so (A) with the consent of all the parties to such conversation or electronic communication….” Continue reading “Eavesdropping Law”
A recent explosion of new domain names could profoundly change the digital marketing strategies of businesses and organizations. The regulatory body that coordinates domain names is known as the Internet Corporation for Assigned Numbers and Names (ICANN). ICANN has approved hundreds of new generic top-level domain names (gTLDs) that are starting to become available to the public. Some of the more well-known gTLDs that have been used for many years include .com, .org, or .edu. Examples of new gTLDs that have been approved for release are .blog, .business, .charity, .church, .shop, and .software. Continue reading “New Top-Level Domains: Opportunity or Headache?”
Emergency situations involving churches are making headlines more often than many churchgoers would like to believe. As recently as November 16, 2013, tornados touched down in Illinois on a Sunday evening when many were attending church. Churches were targeted in at least 108 incidents of violence in 2011 and over 135 incidents in 2012.[1] In addition, many churches were affected by technological disasters, such as leaks from industrial plants, roadway spills, and power failure. Continue reading “Churches Should Plan for Disasters and Shooter Situations”
In the fall of 2013, the Commission on Accountability and Policy for Religious Organizations released its report on government regulation of political speech by 501(c)(3) organizations. A copy of the report is available here. The Commission was formed to study abuses by tax-exempt organizations and to recommend solutions. This report focuses on the restriction in Section 501(c)(3) of the Internal Revenue Code that prohibits tax-exempt organizations from participating or intervening in any political campaign. The restriction is designed to prevent tax-exempt funds from being used for political purposes. This issue is of particular importance to churches due to concerns that churches could be punished for making statements about moral or social issues. Continue reading “Commission Recommends Changes to Political Speech Prohibition for 501(c)(3)s”
In July of 2013, Illinois became the 50th state to allow concealed handguns to be carried by its citizens. Starting in January 2014, Illinois citizens will be able to file online applications for a concealed carry permit. It is time to learn about how these laws work and what your responses to them – as an Illinois business – might be. Continue reading “Concealed Carry Gun Laws and How They Affect Your Organization”