Law of Fundraising

Bruce R. Hopkins practices law with the Bruce R. Hopkins Law Firm, LLC, in Kansas City, Missouri. His practice concentrates on the representation of charitable and other tax-exempt organizations, ranging over the entirety of law matters involving exempt organizations, with emphasis on fundraising law issues, charitable giving (including planned giving), the formation of nonprofit organizations, acquisition of recognition of tax-exempt status for them, governance and the law, the private inurement and private benefit doctrines, the intermediate sanctions rules, legislative and political campaign activities issues, public charity and private foundation rules, unrelated business planning, use of exempt and for-profit subsidiaries, joint-venture planning, tax shelter involvement, review of annual information returns, and Internet communications developments.Alicia M. Beck is an associate in the law firm of Polsinelli PC, practicing in the firm’s Kansas City, Missouri, office. She specializes in advising nonprofit entities. Her clients include national hospital systems, research organizations, private foundations, colleges, universities, associations, social welfare organizations, and governmental entities. Ms. Beck assists these clients with formation, structure, and operational issues, including fundraising regulation. She also has experience with various tax restructuring issues relating to international entities.Ms. Beck received her JD degree from the University of Kansas School of Law. Ms. Beck received an LLM in taxation from Northwestern University. She received a BA in Supply and Value Chain Management from Texas Christian University. She is a member of the bars of the states of Illinois, Kansas, and Missouri. She was also selected a 2015 Kansas and Missouri Rising Star for Tax Law.

• Preface viiAbout the Authors ixChapter One Government Regulation of Fundraising for Charity 11.2 Charitable Fundraising: A Portrait 11.3 Evolution of Government Regulation of Fundraising 31.4 Contemporary Regulatory Climate 7Chapter Two Anatomy of Charitable Fundraising 9Chapter Three States’ Charitable Solicitation Acts 113.2 Definitions 113.4 Annual Reporting 113.20 Miscellaneous Provisions 123.22 Unified Registration 12Chapter Four State Regulation of Fundraising 154.2 Police Power 154.2A Registration and Licensing Requirements (New) 154.2B Charitable Purposes Revisited (New) 174.3 Fundraising as Free Speech 184.8 Other Constitutional Law Issues 20Chapter Five Federal Regulation of Fundraising 235.2A Private Benefit Doctrine 235.3 Charitable Gift Substantiation Requirements 255.6 Intermediate Sanctions 345.7 Unrelated Business Rules 355.8 Exemption Application Process 405.11 Public Charity Classification 415.13 Fundraising Compensation Arrangements 425.14 Charitable Deduction Rules 435.15 Commensurate Test 455.18 Postal Laws 465.21 FTC Telemarketing Rules 465.22 Internet Communications 475.25 Political Campaign Financing 475.26 Fundraising Organizations 47Chapter Six Import of Form 990 596.11 Schedule B 59Chapter Eight Overviews, Perspectives, and Commentaries 638.1 Charitable Fundraising and the Law 638.8 Charity Auctions 638.12 Charitable Solicitations and Substantiation 648.12A Charitable Fundraising and Disclosure 658.13 Some Proposals for Relief 67Chapter Nine Standards Enforcement by Watchdog Agencies 699.15 Rating the Raters 69AppendicesAppendix D Inflation-Adjusted Insubstantiality Threshold—$50 Test 71Appendix E Inflation-Adjusted Insubstantiality Threshold—$25 Test 73Appendix F Inflation-Adjusted Low-Cost Article Definition 75TablesCumulative Table of Cases 77Cumulative Table of IRS Pronouncements 89Cumulative Table of Private Letter Rulings and Technical Advice Memoranda Discussed in Bruce R. Hopkins’ Nonprofit Counsel 91Cumulative Table of Cases Discussed in Bruce R. Hopkins’ Nonprofit Counsel 93Table of Tax Reform Legislation 97Cumulative Index 103