New IRS Memo on Shared Websites

Download: Nonprofit Law Podcast #52 (mp3, 10:20)

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Intro

Your guide to the laws impacting nonprofits
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501(c)(3)/501(c)(4) Shared websites

• On February 20th, the IRS released T.A.M. 200908050
• Arguably a stricter stance at affiliated 501(c)(3)-501(c)(4) entities sharing websites when the 501(c)(4) is engaged in political activity that is prohibited for 501(c)(3)s.
• What we’ve always thought
  • Caveat – the IRS rarely gives a lot of spot-on advice, so “what we’ve always thought” is based on educated conjecture based on existing precedent
  • 501(c)(3)s and affiliated 501(c)(4)s can share the same website so long as corporate formalities were followed.
  • The (c)(4) can be on the (c)(3)’s website, but there had to be some kind of way for the (c)(4) to reimburse the (c)(3) for using that space.
  • The (c)(4) also had to be the entity making the communications as well.
• The IRS in this T.A.M.
  • The entities involved here had the (c)(4) reimbursing the (c)(3) for the space, but the (c)(3)’s logo and copyright information were splashed all over the (c)(4) page content.
  • That was a compelling factor for the IRS… more compelling than which entity paid for the communications that endorsed candidates and included non-(c)(3) allowable candidate questionnaires.
• Where does this leave us?
  • It does not appear that the IRS is closing to door to shared sites, but it is clear that details matter beyond which group cuts the check for which content.
  • The safest thing would be separate websites altogether – and these days, it’s certainly less of a cost issue to maintain 2 domain names and 2 design schemes than in year’s past.
  • I suspect, although it’s not 100% clear from the T.A.M., that the (c)(3) and (c)(4) could share a domain hosting package so long as they split the costs, and maintain separate websites with separate communications.
  • Linking between the two should still be acceptable under earlier law, but it cannot rise to the level of campaign intervention, so the links are best left as, “we have an affiliated organization and you can read more about that work here.”

Resources

My post at the nonprofit law blog

Alliance for Justice (note, AFJ has a free conference call on the topic this Tuesday, March 10)

Caplin & Drysdale

IRS TAM 200908050 (Feb 20, 2009)(PDF, via Caplin & Drysdale)

Closing

Email me with questions and suggested topics
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This podcast provides general information about legal topics but it is not a complete discussion of all legal issues that arise in relation to nonprofits nor is it a substitute for legal advice. This podcast does not create an attorney-client relationship. This is general legal information and the contributors make no warranties regarding the general legal information provided in this podcast , and disclaim liability for damages resulting from its use to the fullest extent permitted by the applicable law.

Download: Nonprofit Law Podcast #28 (mp3, 8:48)

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Intro

Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
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Nonprofit Mailing Rates
- Why would you want it? Cheap mailings – 40% of standard mail rates
- Who qualifies? Mainly (c)(3)s and some very limited political committees (i.e. official Dem and GOP committees) – but qualified orgs do not have to be 501(c)(3)s
- How to apply –

This podcast provides general information about legal topics but it is not a complete discussion of all legal issues that arise in relation to nonprofits nor is it a substitute for legal advice. This podcast does not create an attorney-client relationship. This is general legal information and the contributors make no warranties regarding the general legal information provided in this podcast , and disclaim liability for damages resulting from its use to the fullest extent permitted by the applicable law.

Shownotes

Intro

Tim Mooney… Welcome to the Nonprofit Law Podcast
Your guide to the laws impacting nonprofits.
Shownotes…. nplawcast.com
Email the show

Using MySpace and other social networking sites
Great new tool
Allows for two way communication with your members and constituents
It’s a public communication usually, so you need to be mindful that there are some things nonprofits cannot be involved in

Profile
This is the description of the organization… make sure it adequately represents your organization and doesn’t contain any overt political statements that could be seen as supporting or opposing candidates!

Friending
Typically, members of a social network “friend” each other… it’s also used to create a fanbase (i.e. bands, companies, etc.)
In the nonprofit context, it’s used to show support for a set of issues
Friends can post messages on your site… this can create problems if the friends post material that doesn’t fit the nonprofit’s message, or worse, if it is illegal
Options –
(1) Set your profile so that all messages must be approved by an admin first
(2) Only friend people that are known quantities
(3) Make the entire profile hidden to the public (i.e. you have to be a “friend” to read your page)

Other issues

Special rules for members
Copyright
Rights of publicity
All will be covered in the upcoming AP guide – Nonprofits and New Media: Legal Rules for using the Internet, Podcasts and Social Networks

Resources

AFJ – eAdvocacy (pdf)
Advocacy Digest

Closing

Email me with questions and suggested topics
AP audio & handbook on using the Internet, podcasting and social networking for your nonprofit coming later this summer
Need more than a podcast? Tim-Mooney.com
nplawcast.com

This podcast provides general information about legal topics but it is not a complete discussion of all legal issues that arise in relation to nonprofits nor is it a substitute for legal advice. This podcast does not create an attorney-client relationship. This is general legal information and the contributors make no warranties regarding the general legal information provided in this podcast , and disclaim liability for damages resulting from its use to the fullest extent permitted by the applicable law.