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UPDATED 12/9/16: New DoL Overtime Rules Suspended.. For Now.

Posted By Benjamin Bullock, Together SC, Friday, December 9, 2016
Updated: Friday, December 9, 2016

UPDATE:From the National Council of Nonprofits:

The Fifth Circuit Court of Appeals has agreed to expedite its consideration of the Labor Department’s appeal of the nationwide preliminary injunction blocking the Overtime Final Rule, BUT not soon enough for the rule to go into effect before the new Congress convenes and President-Elect Trump is inaugurated. Under the expedited briefing schedule, the last brief will be due on January 31, 2017. See the full briefing schedule here. This means that Congress and the new administration have many options for blocking or altering the rule before it ever goes into effect. Here are some resources worth reading:

o   With DOL’s Overtime Rule in Limbo – Now What?, Nonprofit Knowledge Matters, December 7, 2016.

o   The Status (and Future) of the Overtime Rule, David Heinen, North Carolina Center for Nonprofits, November 23, 2016.

o   Federal Judge Hits Pause Button on Overtime Rule, Nonprofit Knowledge Matters, November 23, 2016.

Original Post on 11/28/16:

Remember those new federal regulations that raised the salary requirement for the overtime exemption to $47,500?  The ones that had many nonprofit leaders excited and anxious at the same time? The ones for which many had already adjusted their policies, practices, and budgets, as they were to take effect on December 1st, 2016?

Well, hold your horses, because they just got thrown in the air. The National Council of Nonprofits reports (emphasis is ours)

On the Tuesday before Thanksgiving, a federal district judge in Texas  issued a nationwide preliminary injunction blocking – at least temporarily – the implementation and enforcement of the Overtime Final Rule that was slated to take effect December 1, 2016. ...The injunction only halts the new rule from becoming law; ... Nonprofit and other employers still must comply with existing federal and state laws regarding fair labor standards, including properly classifying employees as being exempt from or entitled to being paid overtime. 

At this moment, we're not sure what could happen to the new rules. They could be tied up in court until President Trump is inaugurated, in which case he could instruct federal lawyers to drop their challenge to it.

If the matter is settled in court before Jan. 22, and the rules survive, and if the new President wanted to reverse the new rules, then the process is not simple. He'd have to instruct the Department of Labor to issue new regulations, which would take just as long to do (the process for drafting regulations is governed by the federal Administrative Procedures Act, which requires a time-consuming process to be followed) as it took for the current new rules to be drafted and approved. That would mean the new rules could be in effect for at least a year.

And of course, the new Congress could decide to intervene and strike the rules down by disapproving the regulations or amending the Fair Labor Standards Act to forbid the Department of Labor from writing such regulations. Both of these scenarios would be time-consuming as well.

We'll keep you updated as we learn more. Our thanks to our partners at the National Council of Nonprofits for keeping on top of these pressing federal issues. 

Tags:  dol  overtime  Regulations  US Department of Labor 


IRS Withdraws Proposed Regulations on Gift Substantiation!

Posted By Benjamin Bullock, Together SC, Thursday, January 7, 2016

Today, the IRS announced that it had withdrawn its proposed regulations on gift substantiation which would have encouraged nonprofits to collect, store, and report donors' Social Security Numbers, placing a tremendous liability and burden on the nonprofit sector.

The IRS received 37,977 comments during the comment period, with the overwhelming majority fervently against the proposed rules. Many networks, from the United Way, Independent Sector, and the National Council of Nonprofits, rallied their members and stakeholders in opposition to the rulemaking.

The IRS issued the following statement:

“The Treasury Department and the IRS received a substantial number of public comments in response to the notice of proposed rulemaking. Many of these public comments questioned the need for donee reporting, and many comments expressed significant concerns about donee organizations collecting and maintaining taxpayer identification numbers for purposes of the specific-use information return. In response to those comments, the Treasury Department and the IRS have decided against implementing the statutory exception to the CWA requirement, and therefore that exception remains unavailable unless and until final regulations are issued prescribing the method for donee reporting. Accordingly, the notice of proposed rulemaking is being withdrawn.”

Even if the IRS had not withdrawn their proposed rules, Pennsylvania Rep. Keith Rothfus introduced the "Charitable Giving Privacy Protection Act", which would prevent the IRS from making such a rule.

Thank you to all of our members who submitted comments and helped exercise our Collective Voice to stop these misguided rules from going into effect.

Tags:  Advocacy  IRS  Regulations 

PermalinkComments (1)

IRS receives 37,000+ Comments on Donor SSN Collection Rule

Posted By Benjamin Bullock, Together SC, Tuesday, December 22, 2015

From the National Council of Nonprofits


More than 37,000 concerned individuals and organizations submitted comments on the proposed gift substantiation regulation, and virtually all that are viewable expressed a common theme: it is a very bad idea for nonprofits to be asking for donors’ Social Security numbers, maintaining that personal information in their files, and submitting it to the IRS. In the view of many, “never is the better answer” when the question is whether individuals should give their Social Security numbers to people claiming to be soliciting on behalf of a charity.


Read more here! (second article)

Tags:  Advocacy  IRS  Regulations 


SCANPO opposes proposed IRS rule requiring NPOs to collect donor SSNs!

Posted By Benjamin Bullock, Together SC, Monday, December 14, 2015

There’s still time to submit your comments! Comments close Wednesday Dec. 16!

Ready here why the IRS’s proposal to require nonprofits to collect donor SSNs is a bad idea!

Here’s what we sent to the IRS:

The South Carolina Association of Nonprofit Organizations opposes this proposed rule. The requirements would place an additional burden on charitable organizations and would expose them to additional liability.

Our donors trust us with their resources, believing in our missions and that we will use those resources to fulfill those missions. If we had to collect personal private information such as their social security numbers, the burden to protect that information would be overwhelming.

This rule would open the door for scam artists to solicit social security numbers and other private information from our donors, all under the protection of this rule. Furthermore, most organizations use cloud-based databases, and while they are often very secure, no encryption is perfect.

Charitable organizations would become targets of determined hackers, knowing that we will have social security numbers. Small organizations would be forced by this rule to spend money that should go to furthering their missions on higher security databases more appropriate for large healthcare systems.

Our donors are already very cautious with their personal information. This rule would be one more obstacle for donors, and there are already so many. Charitable giving will suffer under this rule, and with it, the good work the charitable sector does.

The existing rules are more than sufficient to substantiate donor contributions to validate tax deductions. Please do not add more rules which would force charities into an awkward and legally perilous position, and put at risk the sacred trust between donors and the charities they support.

Tags:  Advocacy  Comments  IRS  Regulations 

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