Coronavirus Nonprofit Law Additional Roundup: Chronicle on Philanthropy Coverage; JCT Scoring; DAFs & Private Foundations; State Guidance

As promised, here are some additional items relating to the effect of the pandemic on nonprofit law.

Chronicle of Philanthropy Coverage: The Chronicle of Philanthropy is providing a series of articles to help nonprofits deal with the coronavirus crisis. Notable entries relating to legal topics include:

• How the New $300 “Universal” Deduction Works (flagging not only the uncertainty about how long the deduction is available but also whether a married couple filing jointly can claim a $600 deduction)

• Ask an Expert: Eligibility for Federal Stimulus Funds and the New Charitable Deduction

• How to Apply for Stimulus Benefits

JCT Scoring of CARES Act: See the numbers below for the projected revenue effects of the CARES Act charitable contribution deduction provisions from Joint Committee of Taxation publication JCX-11-20. Perhaps most importantly, and as flagged by a commentator on my initial roundup, JCT takes the position that the $300, above-the-line charitable contribution deduction sunsets on 12/31/2020, although I still have not found statutory language to this effect.

Provision                                             Effective          2020  2021   2022 2023 2024 2025 2026 2027 2028 2029 2030 2020-25 2020-30

4. Allowance of partial above
the line deduction for charitable     tyba 12/31/19 -310 -1,241     —     —      —     —     —      —      —     —      —       -1,551      -1,551
contributions (sunset 12/31/20)

5. Modification of limitations 
on charitable contributions              tyea 12/31/19 -1,080 -3,748 2,403 741  367     45     179   —     —     —      —       -1,272     -1,093

[Millions of Dollars; Years are Fiscal Years; tyba = taxable years beginning after; tyea = taxable years ending after]

DAFs and Private Foundations: As many nonprofits and particularly charities brace for a sharp downturn in donations, numerous commentators are calling on advisers and sponsoring organizations for donor-advised funds and management for private foundations and other funders to increase and modify their giving. Examples from the Chronicle of Philanthropy include:

• David Biemesderfer, Grantmakers Must Put Equity at the Forefront of the Coronavirus Response
• Alan Cantor, Save Lives Now, Grant Makers and Donors
• Terry Mazany, The Coronavirus Outbreak Could Prove Why Donor-Advised Funds Serve Society
• Lauren Smith, How to Help the Most Vulnerable Through the Pandemic

State Guidance: The New York Attorney General’s Charities Bureau has issued Guidance for Charitable Nonprofit Organizations Facing the Challenges of the COVID-19 Pandemic. Topics covered include:

• How the Charities Bureau Can Help
• Registration with the Attorney General’s Charities Bureau
• Additional Extensions of Times to File
• IRS Extended IRS Form 990 Filing Date
• Reserves, Restricted Assets, and Use of Endowment Funds
• Filing a Complaint with the Charities Bureau
• Resources for Charities

Lloyd Mayer