2012 Annual Legal Review An Association TRENDS Special Focus sponsored by VENABLE LLP Venable is pleased Association legal concerns ran the to sponsor again the gamut in 2011, from the new Association TRENDS Annual area of Internet concerns, to Legal Review. This standards-making, to bans on Legal Review contains updates on major federal staff attending meetings developments of the last year as well as summaries of articles and presentations that the Venable team has made on legal topics of T OP 8 T OP 8 importance to the trade association and nonprofit community. I hope you will find them of interest and invite you ASSOCIATION ASSOCIATION to subscribe to future alerts and articles at www.Venable.com/ LEGAL ISSUES LEGAL ISSUES SubscriptionCenter. You can also access a complete collection of past articles at Venable.com/ OF THE PAST YEAR OF THE PAST YEAR services/industries/nonprofits and associations/publications. emption of more than 275,000 nonprofit Lobbying: Meet you in St. Louis – Brock R. Landry, Chairman, organizations, almost 17% of those previ- or not. The Federal Election Commission Government Division, ously exempted. This action impacts those and Office of Government Ethics have pro- entities that have failed to file required re- Venable LLP posed significant new restrictions on the in- turns for three consecutive years. The IRS teraction of federal employees with trade made significant efforts to inform the associations. Existing House and Senate gift community of the new requirements for rules restrict legislative personnel from at- filing and indeed even extended the dead- tending events unless they are “widely at- Inside lines for compliance. Although many of tended events (more than 25 people)” and the nonprofits that lost their exemption if they have a speaking role or if it will ‘fur- are likely defunct, the change will hit ther the interest of the government.’ An many that either did not know or ignored Executive Order similarly restricts political the requirements for filing. Those organi- appointees from meetings although “widely ■ Top 8 association legal issues of zations wishing to re-obtain tax exemption attended gatherings” in the Order’s parl- the past year must start from scratch – filing a new page 5 ance are not defined by number. The new Form 1023 or 1024 and submitting appro- proposals would extend these restrictions priate users’ fees. Loss of exemption can to all executive branch employees. The as- ■ Employees: Their Facebook said be significant: the entities may incur in- sociation community has vehemently op- what about the association? page 7 come tax liability and contributions to erst- posed the proposal arguing that this will while (c)(3)s may not be deductible. inhibit free interaction of government em- ployees with the trade association commu- ■ FEC advisory opinion opens Litigation. In October 2011, the Obama nity at events such as trade shows and other PAC doors page 7 administration continued its restriction on events that would educate the federal em- interaction with lobbyists by prohibiting ployees about their members. registered lobbyists from serving on federal ■ Is your chapter a franchise page 8 advisory committees such as the Industry Taxation: Revocation of nonprofit Sector Advisory Committees, which advise tax exemptions. In June 2011, the In- ■ Meet the Venable Associations See TOP 8, p. 6 ternal Revenue Service revoked the tax ex- and Nonprofits Team page 8 2012 Annual Association TRENDS Legal Review, sponsored by VENABLE LLP www.AssociationTRENDS.com March 2012 5
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