District of Columbia
It was reported to us that a District of Columbia organization was recently notified of a fine for failure to register in the District. We were told that the fine assessed was $2000.
A scathing report has been issued by a forensic auditor condemning the excessive spending by the University of Louisville Foundation. The report cited investments in worthless real estate and startups as well as tickets for football and basketball games. The report also noted that the Foundation attempted to conceal inappropriate transactions.
Seventy years ago, Russell Gremel (now 98 years young) bought $1,000 worth of stock in a new startup drugstore chain that turned out to be Walgreens. He never married and never had children and now has donated the stock to the Illinois Audubon Society (the stock is now valued at over $2 million).
Long-time regulator, Kathy French, has announced her retirement effective June 30, 2017. Best wishes to her in her retirement.
Numerous media outlets report that the New York Attorney General’s office is investigating the Eric Trump Foundation as a result of questions raised about the charity and its payment of high sums to use Trump family-owned properties for fundraisers. Forbes magazine reports that hundreds of thousands of dollars raised on behalf of charities went to Trump-owned facilities.
Department of Labor Announcement
The United States Department of Labor withdrew two administrative interpretations pertaining to wage and hour issues. The effect of the ruling is to change the perception of wage and hour policy by this important agency.
According to the most recent edition of Giving USA: The Annual Report on Philanthropy, donations grew a modest 1.4% to total $390 billion.
Justice Department Announcement
In the past, when the federal government has entered into settlements with companies accused of wrongdoing, sometimes payments in lieu of fines have been made to nonprofit organizations. The practice is being stopped. In a memo released in early June, Attorney General Jeff Sessions directed the Justice Department to no longer include funding for projects managed by outside groups in settlements with corporate wrongdoers. Instead, the money will go directly to the Federal Treasury or to victims of the company’s actions.
We are pleased to announce the addition of Anna Schall as an attorney with our firm. Anna comes to us from the Missouri Office of Attorney General. She will be working on exempt-organization matters with the firm. Welcome to the firm, Anna!