2014 NCWBA Member Organizations

2014-2015 NCWBA Officers and Board

Lauren Tucker McCubbin

     

September 2014 

On July 1, 2014, the Internal Revenue Service introduced the Form 1023-EZ, a short and online version of the Form 1023, Application for Recognition of Exemption, (see Rev. Proc. 2014-11, 2014-3 IRB 411).   The new form is 3 pages long, as compared with the regular 26-page version, and the Service estimates it will take 14 hours to complete, as compared with the estimated 101 hours required for the regular Form 1023. 

The Service estimates that approximately 70% of all applicants will be eligible to complete the short form, thereby reducing the backlog of applications (currently 60,000, representing a current average review period of 9 months), and speeding up application processing. It also anticipates that the reduced application burden on the Service will free it up to devote more time to reviewing compliance by organizations in the performance of their exempt activities. 

                Who can use the Form 1023-EZ?

There is a 22-question worksheet for organizations to use to determine if they meet the eligibility requirements for the Form 1023-EZ. Generally, a domestic nonprofit corporation that anticipates $50,000 or less in annual gross receipts for its first three years or in any of the past three years, and having total assets equal to or less than $250,000, may use the short form.   To use the short form, organizations must qualify as a non-operating private foundation or a Section 509(a)(1) or (2) public charity. Among a few other types of entities, the following are not entitled to use the short form: LLCs, churches, schools, hospitals, foreign organizations, donor-advised funds, credit-counseling organizations, and supporting organizations.

Part V of the new form also may be used for reinstating organizations whose exempt status was automatically revoked for failure to file required annual returns or notices for three consecutive years , if they are requesting reinstatement under sections 4 or 7 of Rev. Proc. 2014-11, 2014-3 IRB 411.

There is a user fee of $400 to process the Form 1023-EZ, which must be paid by direct deposit or by credit/debit card at the time of the application submission. Only an officer, director, or trustee listed in the form who is authorized to sign for the organization may electronically file the Form 1023-EZ. 

                What is included in the simplified form?

The three-page application form limits questions to those identifying the organization (including the names and addresses of officers, directors and trustees), defining the organization's structure and specific activities, and determining whether the organization is a public charity or a private foundation.

The short form does not request information about the applicant's budget, grant-making and scholarships plans, and general policies.

                This is great! Right??

Although small organizations likely will appreciate the increased efficiencies of the Form 1023-EZ, it is precisely the small organizations that often fail to really think through the business aspects of operating a nonprofit, something that the longer form assisted applicants in doing. I question whether this abbreviated process will simply increase the already large number of exempt entities that quickly fail once they start operations, or which fail to consider the adoption of policies that help to ensure legal compliance.

 

Shouka Rezvani is an attorney with Tonkon Torp LLP and chairs the firm's Nonprofit and Tax-Exempt Entities Practice Group. 

This article initially appeared in the Fall 2014 issue of the Oregon State Bar's Nonprofit Organizations Law Section's newsletter, and is reprinted here with permission.

During its recent retreat in Kansas City, the NCWBA board was delighted to have the chance to meet with local women's bar leaders at a reception hosted by Polsinelli.

NAWL General Counsel Institute

November 6-7, New York 

The NCWBA is pleased to be a co-sponsor of the National Association of Women Lawyers' 10th annual General Counsel Institute on November 6-7 at the Intercontinental Hotel in New York city. Members of NCWBA member organizations will receive a 10% discount on registration by entering the code GCINCWBA2014 when registering.

The theme this year is "Strategic Leadership: Developing Legal Expertise and Skills to Enable and Empower Yourself and Others in the 21st Century." In recognition of the GCI's 10th anniversary, NAWL has invited ten general counsels to appear as part of the program, sharing their experiences and what it takes to lead an in-house legal department in 2014. Two GC Keynote addresses are scheduled, with Brad Smith of Microsoft appearing on Thursday November 6th, and Sandra Leung of Bristol-Myers Squibb speaking on Friday November 7th. In addition, attendees will learn about topics of utmost importance to general counsels and their organizations in nine substantive workshop sessions.  We also will hear from Susan Colantuono, CEO of Leading Women, who will speak about the "Missing 33% of the Career Success Equation for Women," and Rebecca Halstead, CEO and Founder of STEADFAST Leadership and Brigadier General, (US Army Ret.) 

On September 8th, former NCWBA board member Michelle "Miki" McGovern was named by Iowa Governor Terry Branstad as the acting Workers' Compensation Commissioner, effective immediately. She has served as an Iowa Workers' Compensation Deputy Commissioner for the past 26 years.  

The NCWBA maintains three separate listserves. Presidents and Presidents-Elect of our member associations are eligible for our Presidents Circle listserve.  Executive Directors and those who take on primary administrative tasks for member organizations which do not have paid staff are eligible for our Executive Directors listserve. Anyone involved with women's bar associations as a leader or member may opt to join our NCWBA@yahoogroups.com list.  This is an interactive list which is a great resource for referral requests, job announcements and other matters of interest to women's bar associations. To join this list, send us an e-mail with your name and the e-mail which you wish to use, describing your involvement in a women's bar association. Let us know if you know of people who wish to be added to any of our lists.

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Member organizations are invited to have links to significant upcoming events on our "Members" page. Send us your links!