October 2022

Nonprofit Organizations Digest

4 min

Venable's Nonprofit Organizations Practice is pleased to share recent articles, presentations, and video-recorded webinars by our attorneys. This digest brings together some of our most interesting and useful materials, available for your use in tackling the difficult legal challenges facing your organization.

Upcoming Event

Talking About Governance—Practical and Legal Tips for Effective Management of Boards and Committees

October 20, 2022 | Washington, DC and Webinar

Nonprofit organization leaders often struggle with enhancing board and committee effectiveness in a way that helps (rather than impedes) staff’s ability to carry out the execution of the board’s plan. Hear real-world insights from a long-time nonprofit executive for one of the nation’s most innovative social enterprise charities and learn how legal requirements and guardrails inform efforts to change and modernize your nonprofit’s governance practices.

Please join us for a cocktail reception on our rooftop following the program.

Notable Articles and Publications

Tax Efficiency in Exchange for Energy Efficiency

Is your tax-exempt organization working on major construction or renovations on your property? Or considering purchasing new energy-efficient cars for your organization? If so, there is some good news for you.

The Inflation Reduction Act of 2022 ("the Act"), signed by President Biden on August 16, 2022, includes a wide range of tax incentives for alternative energy and energy-efficient projects. The Act extends existing tax credits and adds new tax credits for a wide range of projects—everything from solar panel installation to electricity produced at zero-emission nuclear plants.

Loosening Shareholder Primacy's Grip on Environmental, Social, Governance ("ESG") Factors:
Benefit Corporations Offer Increased Latitude in Decision-Making for ESG Motivated Directors

Matthew Quandt published "Loosening Shareholder Primacy's Grip on Environmental, Social, Governance ("ESG") Factors: Benefit Corporations Offer Increased Latitude in Decision-Making for ESG Motivated Directors" in The George Washington University Business & Finance Law Review. The following is an excerpt:

The longstanding view that corporations exist for the sole purpose of delivering profits to their shareholders has come under increased scrutiny in recent years. Critics of shareholder primacy have elevated considerations of environmental, social, and governance factors (ESG), and lauded companies that engage in strong corporate social responsibility initiatives. Legislators have responded to this recent shift of opinion by creating the "public benefit corporation" (PBC) entity form in both Delaware and 34 other states. This "hybrid" organizational form permits directors to consider multiple constituencies in their decision-making and pursue two corporate purposes simultaneously: the traditional pecuniary motive of returning profit to shareholders, as well as additional "public benefits" of their specification, which may be nonpecuniary.

The Pandemic Forced the Cancellation of Your Nonprofit's Event—Now What?
Handling Unclaimed Refunds Under States' Abandoned Property Rules

The COVID-19 pandemic caused many nonprofits to postpone or cancel conferences, conventions, trade shows, and other events. This has often meant working with nonprofit organization members and attendees to coordinate refunds or credits of registration fees. Despite what otherwise seems like a person's clear interest in receiving funds owed to them, this process is not always straightforward. Emails bounce back, attendees can be unresponsive, and other challenges may leave host organizations wondering what to do with refunds or credits that belong to their registrants—the property owners.

The Intersection of Employee Leave, Wage Replacement Benefits, and Healthcare Coverage: A Primer on the Coordination of Benefits for Nonprofits

An increasing number of states and localities are implementing laws that provide employees with benefits such as paid sick leave, family and medical leave, and/or disability benefits. As a result, nonprofits are increasingly likely to be faced with the challenging tasks of not only complying with these laws, but also determining how these entitlements intersect with the leave, wage replacement benefits, and health insurance provided by the organization. These tasks have become even more complex during the pandemic, because many nonprofits have changed from an in-person work model to a remote work model, thereby increasing the number of applicable jurisdictions.

Maximize Your Nonprofit’s Profile and Fundraising Efficiency: Making the Most of Cause-Related Marketing Collaborations with Donor Brands

Federal agencies, state charity regulators, and independent groups are not only closely monitoring developments in cause-related marketing, but are responding with new regulatory frameworks and best practices to address hybrid fundraising activities. At the same time, nonprofits strive to maximize their fundraising efficacy and visibility in the face of cutting-edge fundraising proposals from their corporate sponsors. Join us for this virtual webinar to learn more about the legal boundaries and practical considerations related to charitable sweepstakes, customer donation programs, CCV campaigns, online giving platforms, raffles, auctions, and more charitable fundraising efforts so that your nonprofit can maximize the benefit of corporate giving while protecting its reputation, tax-exempt status, and legally compliant standing.