Gift laws

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The U.S. Supreme Court has agreed to review two similar constitutional challenges to California’s law requiring that charitable organizations registered to fundraise in the state disclose the names and addresses of their major donors: Americans for Prosperity Foundation v. Becerra (No. 19-251) and Thomas More Law Center v. Becerra (No. 19-255).

Dozens of nonprofits nationwide have filed briefs opposing the California law, emphasizing concerns about the privacy of their donors and the risk of public disclosure of the organizations’ Schedule B donor information, which is typically filed on a confidential basis with the IRS as part of the otherwise public Form 990. The briefs represent diverse sectors of the nonprofit industry, such as public policy, research, and educational foundations; professional membership associations; and social welfare organizations.

The key issue in the case is whether California’s law has a chilling effect on First Amendment association rights, as donors to controversial causes may fear the fallout if their identity were to be made public. The petitioners argue that California has not shown a sufficient state interest to justify these First Amendment implications.…

Continue Reading Nonprofits Weigh in on California Donor Disclosure Cases Before U.S. Supreme Court

The ethics rules that apply to presidential appointees have undergone significant changes this month, with wide-ranging implications for incoming Biden appointees and their former employers, as well as for outgoing Trump officials and their prospective employers.

President Biden issued an executive order just hours after being sworn in as president, requiring certain members of his administration to sign an ethics pledge outlining incoming and outgoing employment, gift, and lobbying restrictions. The pledge requires presidential appointees throughout the federal government to commit to the following:…

Continue Reading Biden Requires Ethics Pledge from Executive Branch Appointees, While Trump Appointees Are Released from Theirs

As the impact of the coronavirus (COVID-19) is felt around the country, states and cities are welcoming help from the private sector, including donations of medical supplies and equipment, professional services, and the use of real property. To facilitate this support, some jurisdictions have loosened or clarified their ethics laws to facilitate these “gifts” to…

gift-1420830_640With a new administration coming into office, there will be many changes in Washington. One less noticed change comes from the U.S. Office of Government Ethics (OGE) and will affect how you interact with new executive branch appointees and those career employees who stay on from the prior administration.

OGE recently published amendments to the executive branch gift rules, which took effect on January 1, 2017. The amendments affect some of the most common ways in which individuals and organizations engage with federal officials and employees, including receptions, widely attended gatherings, and gifts based on a family or personal relationship.

Here are some of the most significant changes:…

Continue Reading Major Changes in Gift Rules Greet Trump Administration

By White House/Chuck Kennedy (White House (P090612CK-0875)) [Public domain], via Wikimedia Commons
Thinking about sponsoring or hosting an event at the presidential nominating conventions in Cleveland and Philadelphia?  Or considering giving free items to attendees?

Venable’s client alert summarizes recent guidance on convention events from the House and Senate ethics committees,…

nomoneyThe Federal Election Commission recently concluded an investigation into contributions from a Canadian citizen to a candidate for governor. Why would the FEC investigate a state contribution? Because the ban on contributions from foreign nationals applies not just to federal candidates, but to state and local candidates as well.

The FEC dismissed the case because the state candidate did not know the contributions were illegal. In fact, he had checked with state election officials, who told him there was no issue under state law. There wasn’t, but there was an issue under federal law.

Foreign nationals are individuals who are not U.S. citizens or non-citizens who do not have permanent resident (i.e., green card) status, as well as any companies incorporated, organized, or located abroad. U.S. citizens living in other countries are permitted to contribute.…

Continue Reading Don’t Forget: Recent FEC Case Is a Reminder That Federal Law Prohibits Contributions at the State and Local Levels Too

As we get closer and closer to the elections, candidates will be working harder and harder to raise money. One tried and true method is the fundraiser: an individual agrees to put together an event where his or her closest friends will make substantial contributions to the candidate, attend a breakfast, lunch, cocktails, or dinner, meet the candidate, and, if they contribute enough, get a picture with the candidate. While this may seem simple and straightforward, companies often get into trouble when they use their corporate resources to help put on fundraisers.

The largest fine in FEC history ($3.8 million) came as a result of corporate facilitation back in 2006. Others have followed. The FEC just unveiled an enforcement case involving a Nevada architectural firm that paid a substantial fine for using corporate resources to hold a fundraiser. The settlement provides a good example of how not to fundraise for federal candidates. …
Continue Reading Hosting Fundraisers: One Company’s Example of How Not to Do it

presentThe Office of Government Ethics (OGE) has proposed revisions to the gift rules for executive branch employees. Although some of the proposed changes are meant to bring clarity without changing the rules’ substance, several changes will result in new restrictions on the “gifts” that flow from day-to-day interactions companies and associations have with officials. Overall, the changes do little to bring further clarity, and do a lot to cloud the waters of when certain gifts are permissible.

It is important to remember that a gift is broadly defined to include anything of value. Most entities with any business or policy issue before an agency are considered prohibited sources, and may not give any gifts unless an exemption applies. Thus, attendance at events, food and drink, attendance at receptions, and commemorative plaques are all considered to be gifts subject to restrictions on whether executive branch employees may accept them. …
Continue Reading The Office of Government Ethics Proposes Changes to the Gift Rules: How the Changes Could Limit Interaction With Government Officials

Earlier this month, Virginia Governor Terry McAuliffe signed into law a new bill making significant changes to Virginia’s lobbying and gift laws. The critical changes made by this bill, Senate Bill No. 1424, will become effective on January 1, 2016. Many of the revisions focus on gift reform, but the bill also contains important changes affecting lobbying as well as pay-to-play compliance. …
Continue Reading Virginia Tightens the Reins: Major Lobbying and Gift Law Changes to Take Effect in 2016

deadlineFirst quarter lobbying disclosure reports are due on Monday, April 20. This report, the LD-2, is where organizations report their expenses for federal lobbying efforts. The first quarter of a year is often a good time to evaluate your organization’s recordkeeping and processes for filling out the report and to determine what changes may need to be made. Keep in mind these key aspects of preparing the report: …
Continue Reading First Quarter LD-2 Reports Deadline Approaching