13 Non-Profit Corporations, Charities, and Foundations 13 Non-Profit Corporations, Charities, and Foundations
State Attorneys General have always had some responsibility to review the operations of non-profit charities and foundations. Unlike like for-profit sectors of the economy, which answer to boards of directors and shareholders, Attorneys General often are the only entity with responsibility over non-profit charities and foundations. Particularly because the 1.5 million non-profit organizations, such as hospitals, health insurers, and universities, contribute over a trillion dollars to the economy, the Attorney Generals’ increased use of that authority has taken on national significance.
13.1. Speaker: Cindy M. Lott, Esq. | Columbia University School of Professional Studies
13.2. The Shifting Boundaries of Nonprofit Regulation and Enforcement: A Conversation with Cindy M. Lott - Non Profit News | Nonprofit Quarterly
13.3. Regulation of Nonprofits and Philanthropy Project | Urban Institute
This document shows the major relevant Nonprofit statutes for all 50 states, and DC. A good reference document loaded with legal research, and useful for students to see the breadth of regulation.
13.4. Cancer Fund Case (brought by all State AGs)
FTC and the 50 United States of America and D.C. vs. Cancer Fund of America, Inc.
In the "Cancer Fund" case, all 50 state AGs, plus the District of Columbia and the FTC, sued a well- known fundraising group for fraud (the first time in AG history for any topic, it is believed, where all were in agreement and joined). The simple naming in the complaint of the plaintiff states and the counts on which they join is a literal primer on jurisdiction across the states in this arena. The brief is long, but pages 81-95 is especially important reading. Fundraising is a key sector in which AGs look for fraud, so all states engage in that oversight to some degree.
https://www.ftc.gov/system/files/documents/cases/150519cancerfundcmpt.pdf
13.5. Buffalo Diocese Accused of Years-long Cover-Up of Sexual Abuse - The New York Times - Nov. 23, 2020
13.6 NAAG "Powers & Responsibilities" - Non-profits & Charities Chapter 13.6 NAAG "Powers & Responsibilities" - Non-profits & Charities Chapter
Google Docs Link: Chapter 12
13.7. Various Attorney General Non Profit cases (2003-2019)
Check with professor to confirm which of these selected articles should be read prior to class.
These are a series of non-profit enforcement cases analyzed by state attorneys general from 2003 to 2019.
https://www.dropbox.com/s/fhecg9nuvl5chz9/Various%2520Charities%2520Cases.PDF?dl=0
13.8 Supplemental Reading 13.8 Supplemental Reading
13.8.1. Bifurcation of State Regulation of Charities (Supplemental Reading)
A brief overview of structure of nonprofit and charitable regulation within AG offices.
13.8.2. The Nonprofit Sector in Brief, National Center for Charitable Statistics, The Urban Institute, June 2019 (Supplemental Reading)
13.8.3. Attorney General James Files Lawsuit to Dissolve NRA - NY State AG - Aug 6, 2020 (Supplemental Reading)
13.8.4. NRA reports alleged misspending by current and former executives to IRS - The Washington Post - Nov. 25, 2020 (Supplemental Reading)
13.8.5. NRA v. NY AG - State Amicus Brief - Filed by 17 GOP AG's - US Dist. Court (N.District of NY) - Dec. 20, 2020 (Supplemental Reading)
13.8.6. NY Complaint against NRA (Supplemental Reading)
13.8.7. NRA Judge blocks NY AG's attempt to dissolve it but allows suit to proceed, (2022)
13.8.8. Republican AGs back NRA in fight against NY effort to dissolve gun rights group
13.8.9. AG Rokita sues BLM for not handing over documents (2022)
13.8.10. State Regulation and Enforcement in the Charitable Sector, Cindy Lott, et. al., Urban Institute, 2016 (Reference)
This 2016 report is the first comprehensive fifty state empirical study of state regulation of the nonprofit sector. The principal author, Cindy Lott, is a former Assistant Attorney General in Indiana and has been working in the nonprofit field at Columbia University since 2004.
E X E C U T I V E S U M M A R Y
This study is the first systematic analysis of state-level oversight and regulation of charities in the United States. The analysis has three components: a legal analysis of laws pertaining to charities in 56 US jurisdictions; a survey of all state and territory offices with oversight, regulatory,and enforcement authority over charities; and interviews with officials in over two-thirds of those offices.
Major findings includethe following:
No single state law of charities oversight exists; instead, oversight involves a complex mix of substantive areas,including charitable trust law, governance, criminal law, solicitation and registration requirements and compliance, corporate transaction review,and conservation easements.
Organization and staffing of state charity offices vary greatly across the country; in 41 percent of states,one office has primary responsibility, but in 59 percent of states,responsibility is shared with other agencies or offices.
Within an attorney general’s office, 13 jurisdictions have a charities bureau, and14 jurisdictions house charities oversight within the consumer protection division of the office.
Most registration oversight is lodged in state attorneys’general offices (21states), followed by secretary of state offices (15) and other state-level charity offices, typically, consumer affairs or business/financial regulation (8).
Lawyers and non-legal staff who oversee charities number approximately 355 in the 48 reporting jurisdictions.
Thirty-one percent of jurisdictions have less than one full-time-equivalent staff, 51 percent have between one and 9.9 full-time-equivalent staff, and 19 percent have 10 or more full-time-equivalent staff.