Two New Rulings for NY Nonprofits

The following are important updates for New York Charities. If you have additional questions, please contact Joseph Milano (jmilano@cbmslaw.com) or Renato Matos (rmatos@cbmslaw.com).

“Schedule B” Collection Suspension

In July 2021, the United States Supreme Court held, in Americans for Prosperity Foundation v. Bonta, that it was improper for the California Attorney General to require nonprofit organizations to submit copies of Schedule B of Internal Revenue Service Form 990, which discloses the names and addresses of certain significant donors.

Please be advised that, as a result of that decision, the New York Attorney General’s Charities Bureau has suspended its collection of IRS Form 990 Schedule B. Effective immediately, charities filing with the New York Attorney General are no longer required to disclose information that identifies donors. Any notice that charities have received regarding any deficiency due to missing or incomplete Schedule Bs are no longer operative as to those deficiencies and annual filing will not be considered deficient for lack of or incomplete Schedule B.

Charities Bureau Extends Filing Deadlines to Organizations Affected By Hurricane Ida

In addition, the Charities Bureau of the New York Attorney General has granted an extension until January 3, 2022 to file CHAR500 annual financial reports to any charities that are eligible for an Internal Revenue Service filing extension due to Hurricane Ida. Those charities located in affected areas designated by the IRS and whose extensions to file are due to run out on November 15, 2021 now have until January 3, 2022 to file their annual financial reports. The “affected areas” include all counties (boroughs) within the City of New York and Nassau and Suffolk Counties. Other affected areas to which the extension applies may be found at https://www.irs.gov/newsroom/irs-announces-tax-relief-for-new-york-victims-of-remnants-of-hurricane-ida.