Nonprofit Legal Alerts

Unfortunately, in this new world of the COVID-19 pandemic, many of our clients are being faced with the need to curtail operations, and either reduce employee hours or lay off employees. Here is a notice from the Georgia Department of Labor about a requirement for all Georgia Employers to file partial unemployment claims on behalf of employees working less than their regular hours due to the COVID-19 outbreak. An employer that fails to file a claim if an eligible reduction in hours or layoff occurs may be held responsible for repaying the agency for any benefits paid to employees.

The Taxpayer Certainty and Disaster Tax Relief Act of 2019 became law on December 20, 2019. This Act repeals the section of the Tax Cut and Jobs Act (“TCJA”) that required §501(c)(3) organizations to pay unrelated business income tax on the costs of providing parking and MARTA passes to their employees. The repeal is retroactive to the original date of the TCJA, so no tax from 2018 to the present is owed.

Description:Many nonprofit employees who are not eligible for overtime pay will become eligible on January 1, 2020 when new regulations under the Fair Labor Standards Act go into effect. This webcast will provide important information to help nonprofits prepare for the new overtime regulations, including an overview of wage and hour law requirements and practical information about complying with the impending changes to the law.

Presenter: Valerie Barney, Deputy General Counsel, Litigation and Employment, Mohawk Industries, Inc.

View the webcast here.

Fiscal sponsorship is typically a formal relationship between a nonprofit organization that is recognized by the Internal Revenue Service as 501(c)(3) tax-exempt (the fiscal sponsor) and an organization that may lack exempt status (the sponsored organization or project) to allow the sponsored organization to receive tax-deductible donations. This article will discuss why organizations may seek a fiscal sponsor as well as the factors a nonprofit should consider before becoming a fiscal sponsor.

Your organization may be required by the state of Georgia to get an audit. Although some organizations are exempt, most nonprofit organizations must register for charitable solicitation in order to solicit donations in the state of Georgia. In order to register for charitable solicitation in Georgia, an organization must submit certain financial statements. Financial statements are also required for renewing charitable solicitation registration. The level of financial statement required to be submitted varies depending on how much money the organization received in the preceding fiscal year.

Does your nonprofit own real estate in Georgia? Are you paying your property taxes annually? Yes, even though your organization has a tax-exemption from the IRS, that does not mean it is exempt from paying property taxes in Georgia. All real property in Georgia in taxable, UNLESS it is specifically exempted. That means unless your nonprofit specifically applied for and was granted an exemption from property taxes for each parcel of real property it owns, then your organization owes property taxes.

Many nonprofits in Georgia, particularly those that work with vulnerable populations including children, the elderly, and victims of violence, do not permit weapons on their premises. On July 1, 2014, the laws of Georgia changed significantly to further limit one’s ability to restrict gun-carrying by licensed gun-holders. These changes may affect nonprofits that currently have such restrictions, particularly those that are located in government buildings or lease property from a municipality, county or the State of Georgia.

The Safe Carry Protection Act (SCPA) became law in the State of Georgia on July 1, 2014. With the passage of the SCPA, many Georgia nonprofits face a new set of rules regarding weapons in and around their workplaces or operating locations.

The SCPA permits an expansion of rights of licensed gun-holders to carry guns and other weapons in public places.

Many employees who are not eligible for overtime pay, including employees of nonprofit organizations, will become eligible on January 1, 2020 because of a new final overtime rule issued by the Department of Labor on September 24, 2019. The salary threshold for overtime eligibility will increase from $455 per week to $684 per week. Nonprofit employers should start planning now to address the obligation to pay overtime to employees who are not eligible for overtime under the current rules as these new rules may lead to significant additional costs.

On September 24, 2019, the United States Department of Labor issued a final rule raising the minimum salary required for the “white collar” overtime exemptions (executive, administrative, and professional) from $455 per week ($23,600 per year) to $684 per week ($35,568 per year). The DOL further raised the salary threshold for the “highly compensated” exemption from $100,000 to $107,432. The new rule takes effect on January 1, 2020.

Under this new rule, many employees who are currently classified as salaried exempt will no longer pass the salary test. This change will affect millions of employees who earn more than $23,600 but less than $35,568 per year. The new regulations will significantly impact the nonprofit world, where salaries in the $25,000-$35,000 range are common. Nonprofits should start planning now to meet the upcoming budgetary challenges

An employee handbook can be an important tool in clarifying roles, enhancing performance management, and reducing legal risk in a nonprofit organization. A clearly drafted and comprehensive employee handbook that contains policies the organization actually follows, can help ensure not only that managers, supervisors and employees understand the rules and guidelines that govern their employment, but also that the organization is in compliance with legal requirements.