We are happy to announce that Section 6A of Mass. General Laws Chapter 180 has been permanently amended to allow on-line member meetings and voting at any annual, regular or special meeting when authorized by a nonprofit corporation's Board of Directors. This amendment now permits meetings of corporate members in-person, hybrid and in all remote settings assuming certain safeguards to ensure adequate notice and voting security are followed. Our Firm was pleased to have an opportunity to comment on the proposed legislation through the highly dedicated team at the Boston Bar Association who advocated for this legislation over many months before it was approved by the legislature and signed into law by Governor Maura Healey on March 29th as part of the omnibus budget bill. Please contact us if you have any questions about this long-awaited law.
Changes to IRS e-Postcard Filing for Small, Tax-Exempt Organizations
Smaller charities whose annual gross receipts are normally $50,000 or less may choose to file Form 990-N, Electronic Notice for Tax-Exempt Organizations (e-Postcard). The IRS now offers sign-in options with Login.gov and ID.me. Both offer access to IRS online services through a secure account that protects your privacy. Currently, users with an active IRS username have the option to access the Form 990-N submission page using their active IRS credentials, however, this option will eventually be phased out. If you have an existing IRS username, the IRS recommends creating an account with Login.gov or ID.me as soon as possible. Please click here to view a copy of the IRS Form 990-N Electronic Filing System (e-Postcard) User Guide.
Online Filing Now Availalble for MA AGO Registration and Form PC
Approval time for online registration and Form PC filing has been dramatically reduced to about a week vs. two to three months when these filings are submitted in hardcopy. The Massachusetts Office of Attorney General Non-Profit Organizations/ Public Charities Division encourages Initial Charity Registration and Annual Form PC to be filed online. See details here: https://www.mass.gov/info-details/online-charity-filing-portal. Please contact Machiko Sano Hewitt if you have any questions about these new online filing systems.
MA AGO Publishes an Updated Guide for Board Members of Charitable Organizations
The MA Office of Attorney General Non-Profit Organizations / Public Charities Division (Division) recently published an updated Guide for Board Members of Charitable Organizations (Guide). The Guide has been a valuable resource for charities and their boards statewide for many years. The updated Guide demonstrates the Division’s renewed focus on certain aspects of fiduciary oversight and operation of Massachusetts charities. Focus areas include duty of allegiance to mission, conflict of interest policy and procedures that are closely aligned with the IRS requirements and emphasis on diversity and term limits as key to keeping vital. We strongly recommend you share this Guide with your board and management Please contact us with any questions or concerns arising from this revised Guide.
Have you filed your Annual Report?
Every non-profit corporation organized under the laws of the commonwealth must file a non-profit annual report with the Corporations Division on or before November 1st of each year. M.G.L.A. c180 § 26A; 950 CMR § 106.13. Please click here for a link to the MA Corporations Division website regarding nonprofit filings:
Office Closed for Vacation August 8 -19
Our office will be closed for vacation AUGUST 8 – 19. If you need immediate legal assistance, please leave a message via phone or email and one of our attorneys will respond.
Contact Information During Office Vacation Weeks :
Phone: 978-464-9003 Email: admin@lizreinhardtlaw.com
Multi-State Registration & Compliance for Nonprofits: When, Where and How
Liz Reinhardt and Chris Leigh-Manuell, Paralegal at Hurwit & Associates will be presenting Multi-State Registration & Compliance for Nonprofits: When, Where and How, a free online event on Tuesday, June 8, 2021 at 11:00 am.
Regulatory requirements for multistate fundraising are complex, hard to navigate, and compliance can be costly. Nonprofits soliciting funds outside their home states are well served when they adopt a strategic approach and have a good grasp of the legal requirements in a changing landscape before wading into these waters.
Register here to find out what your nonprofit needs to know!
The Roles and Responsibilities of Nonprofit Stewards: Fundamentals of Board Governance
2020 Massachusetts Nonprofit Network (MNN)'s Annual Conference Early Bird Registration
We're happy to announce that we are sponsors for the 2020 Massachusetts Nonprofit Network (MNN)'s Annual Conference Tuesday, October 6th to Thursday, October 15th.
This year's conference entitled New Paths Forward will be held virtually and is expected to draw over 600 attendees. It will include over 16 workshops, keynote speakers and panels, and the presentation of two Lifetime Achievement Awards! We encourage you to attend. Early bird registration has already begun and will end Friday, September 11th.
Liability Protections for Your Organization: A COVID-19 Toolbox
Nonprofit organizations are navigating complex questions regarding their operations during the COVID-19 pandemic. The coronavirus has introduced a great deal of uncertainty into our day-to-day lives.
There are constructive actions that you can take to benefit your nonprofit and support its good work. As you consider how to resume or continue operations, and how best avoid potential liability, the various options below are tools that can be used to build a shield of protections. While no shield can protect your organization from all risk under all circumstances, using different tools in the box will help build a broader shield of protection.
The Deadline to Apply for a PPP Loan is Tuesday, June 30th!
Borrowers are encouraged to start doing their loan forgiveness calculations as soon as possible so as to maximize that amount!
Please be careful to avoid overlap in the use of the PPP and the Economic Injury Disaster Loans (EIDLs): You cannot use these two loans for the same purpose.
Please find more information here.
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Attorney General's Division of Public Charities Announces Relaxed Deadlines
The Massachusetts Attorney General's Division of Public Charities has issued guidance "extending certain deadlines and making other changes to assist the sector in operating from remote work locations due to the COVID-19 Pandemic." A link to the Attorney General’s Public Charities Covid Notice can be found here.
These changes offer some welcome relief in these challenging times. They include extending the deadline for all 2019 annual Form PC filings for 6 months, in addition to the automatic 6 months extension may charities elect, and on-line processing instructions for other submissions to the Division.
Please don't hesitate to call or email if you have questions about how this new guidance may impact your organization
Coronavirus and Massachusetts Nonprofits
As we all work to respond carefully and effectively to the challenges presented by the Coronavirus pandemic, the Massachusetts Nonprofit Network is doing an enormous service in gathering current information and offering updates to the Massachusetts nonprofit sector.
An important update today can be found here: http://massnonprofitnet.org/nonprofit-resources/coronavirus-massachusetts-nonprofits/
MNN also has a dedicated Coronavirus page on its website: http://massnonprofitnet.org/
We hope you find these resources helpful and thank you for the important work you are doing for our communities.
Massachusetts Nonprofit Network: Is your organization a member?
The Massachusetts Nonprofit Network (MNN) is an important resource for community based nonprofit organizations across our state. Reflecting the broad diversity of the Massachusetts nonprofit sector, MNN is a central source for education, information sharing, sector advocacy, and networking among members committed to advancing the nonprofit missions of the organizations they serve. The MNN website and publications are deep with timely, substantive information and each year the Annual Conference fosters learning, connection, and advancement in the field. Liz is a recent MNN board member and has admired this organization for years. More information can be found on the MNN website.
You may want to consider membership, starting at $75/year, or attending this year's Annual Conference in October.
Massachusetts property tax exemption: Have you filed your Form 3ABC?
Reminder: Charitable organizations in Massachusetts may qualify for an exemption from paying local real or personal property taxes. Taxpayers – including charitable organizations – have the burden of proving that they qualify for this exemption. Factors that are considered by local assessors generally include whether the organization operates as a charity, serves an “indefinite class” of persons, and uses their property predominately for the organization’s charitable purpose.
The annual return, Form 3ABC, is due by March 1st for those organizations that have already obtained the property tax exemption. For those entities that have not yet applied for the exemption – or are curious as to whether they would qualify – our office would be pleased to do an assessment and, as applicable, assist with an initial application. Please contact us at admin@lizreinhardtlaw.com for help with your application or to schedule an assessment.
For additional information please refer to the MA Department of Revenue’s guidance memo, “Taxpayer’s Guide to Local Property Tax Exemptions: Religious and Charitable Organizations,” found here.
MGL Chapter 93H Update
MGL Chapter 93H Update
When did you last review or update your organization’s WISP which governs the rules of handling “Personal Information” of Massachusetts residents that your organization collects directly or indirectly? General Laws of Massachusetts Chapter 93H were updated in April with significant changes that include obligatory credit monitoring in some situations for persons whose PI is breached. If you have any concerns, contact us for a courtesy call or meeting via email (admin@lizreinhardtlaw.com) or phone (978-464-9003).
Welcome, Machiko!
We are happy to announce a new member to our team, Attorney Machiko Sano Hewitt . Machiko handles the formation of nonprofit entities and corporate governance matters including development of Bylaws, Conflict of Interest, Document Retention, Whistleblower and MA electronic data security, and WISP (written information security program) policies.
Prior to joining our firm, Machiko held the position of Nonprofit Assistance Director at Lawyers Clearinghouse in Boston for 15 years, managing a wide range of legal areas that affect Massachusetts nonprofit organizations. In addition to overseeing the Legal Referral Program (which connects nonprofit organizations unable to afford legal fees with pro bono lawyers and firms), she also designed and organized educational programs and clinics for nonprofit organizations, and trainings for pro bono attorneys.
If you have any questions or concerns about your current policies including WISP, please contact Machiko for a courtesy call or meeting via email (msanohewitt@lizreinhardtlaw.com) or phone (978-464-9003 ext.105).
Liz Reinhardt to Present Fundraising Workshop at MNN Annual Conference October 16th
Attorney Reinhardt and Chris Leigh-Manuell, Paralegal at Hurwit & Associates, will be presenting a workshop at the Massachusetts Nonprofit Network Annual Conference on October 16th at the Sheraton Framingham Hotel and Conference Center. Selected from a highly competitive group of 150 proposals, the workshop “Raffles, Co-Ventures and Crowdfunding, Oh My!” will focus on the legal framework and ramifications of popular fundraising methods to help nonprofits make more informed decisions regarding their development strategy. Topics to be covered will include raffles, co-ventures with for-profit entities, and online fundraising including crowdfunding. Bring your questions to the program!
To take advantage of Early-Bird Rates, please register by August 30th.
Massachusetts Paid Family and Medical Leave Update
CLIENT ALERT: Massachusetts Paid Family & Medical Leave Update
POTENTIAL THREE MONTH DELAY OF START OF THE PAYROLL TAX TO FUND PFML PROGRAM
Governor Charlie Baker, Senate President Karen Spilka, and House Speaker Robert DeLeo issued a joint statement on the evening of June 11, 2019, agreeing to delay the start of the payroll tax to fund the Massachusetts Paid Family and Medical Leave program from July 1, 2019, until October 1, 2019, …
Liz Reinhardt to Present at New England Society of Association Executives (NE/SAE)
On Wednesday, May 29, 2019 Liz Reinhardt will present “Getting it right: Hiring Basics Including Legal Dos and Dont’s When Hiring Your Work Force” at the 2019 Annual Meeting of the New England Society of Association Executives (NE/SAE), together with Saleha Walsh, Vice President, Insource Services, Inc. In their session, Liz and Saleha will review hiring tips and pitfalls with an emphasis on compliance, particularly with regard to recent changes in the Massachusetts Pay Equity Act. Also covered in the session will be the new Massachusetts law regarding non-competition agreements, which became effective October 1st of 2018.