NYPMIFA Webinar Sources

For those who were able to join our webinar today on NYPMIFA, the following links are to the sources for the information presented:

New York Attorney General Memo – March 2011

http://www.charitiesnys.com/pdfs/NYPMIFA-Guidance-March-2011.pdf

Various law firm memos

http://www.simpsonthacher.com/content/publications/pub1062.pdf

http://nonprofitlaw.proskauer.com/tags/nypmifa/

http://www.nixonpeabody.com/linked_media/publications/NYPMIFA_Guide_Nixon_Peabody.pdf

http://www.skadden.com/Index.cfm?contentID=51&itemID=2391

http://www.pbwt.com/docs/images/alerts_newsletters/EO_Alert_NYPMIFA_Summary_with_AG_Guidance_0311.pdf

Garth Brooks Beats Hospital for Return of $500,000 Gift and $500,000 Punitive Damages

http://www.cbsnews.com/8301-31749_162-57365621-10391698/garth-brooks-awarded-$1-million-in-hospital-lawsuit/

Not a great day for fundraisers – this case proves a few tough points for nonprofits that we should all be aware of:

1. Never trust a jury to come up with a rational decision – How did the hospital let this go to a trial without settling?
2. Courts will always favor a donor and the donor’s intent over the substance of an alleged agreement (or lack thereof).
3. Get it all in writing – written donor agreements detailing the expectations of all parties is essential for naming opportunities.
4. Be extra careful when dealing with celebrities!

Garth Brooks Sues Hospital for Return of $500,000 Gift

Reblogged from Michael Rosen Says…:

The news about country-music superstar Garth Brooks this week was not about his latest appearance on stage. Instead, the big story was about his appearance in a courtroom as jury selection began in his civil lawsuit against Integris Canadian Valley Regional Hospital, Yukon, OK. Brooks is seeking the return of his $500,000 contribution since the Hospital has neglected to name a building after his late mother, as he asserts was the agreement. Country Music Star Garth BrooksThis news story raises …

Check out this post by Michael Rosen. There are too many details of this story that are still missing but with a trial getting underway, the nonprofit world may be getting treated to the full details of how badly a gift can go (guessing there must have been many missteps by the hospital on this one).

IRA and Other Account Beneficiary Designations – Not So Simple After All

In the Planned Giving world, we like to think that IRA and other account beneficiary designations are easy for donors, and potentially a huge source of untapped wealth in the future.  This is true, but with a word of caution.

I am attaching a court decision below regarding a Pay on Death (POD) account designation of a person trying to name a charity to receive funds on their death.  The bank, not the donor, somehow messed it up and ultimately, the funds were sent back to the estate and the charity lost out.  The opinion is about how the charity then sued the bank for negligence in messing up their planned gift.

There are two reasons why I am posting this story and the case.

For me, this is just a small example of how an attempt by a donor to name a charity through an account beneficiary designation or POD might not work out.  If the paperwork is not properly filed at the bank or other institution, the gift is not likely to happen.  The case showed how it was the bank that failed to properly process the request by the donor and yet, the surrogate court had no choice but to direct the funds back to the estate.

Fundraisers cultivating these types of gifts: take notice and try to confirm paperwork is in order, especially for potentially larger commitments.

The second reason for posting the case and for you to read it:  it is chock full of really fascinating legal issues surrounding privity of contract and other legal stuff that will bore most.  So, for those legal nerds like me, you might enjoy reading it!

Ohio POD Charity Case

About Jonathan’s firm Planned Giving Advisors

Planned Giving Advisors, LLC provides nonprofit organizations with the resources, support and expert guidance to successfully run a planned giving program and close more gifts – regardless of tightened budgets and staff limitations. During the past 15 years, Planned Giving Advisors has helped more than 300 organizations with their planned giving programs, resulting in over $250 million in closed gifts. For further information, please see our website at www.plannedgivingadvisors.com, or contact us directly at info@plannedgivingadvisors.com.

 

 

Webinar on NYPMIFA: What You Need To Know To Avoid An Unfriendly Attorney General Audit

Join us for a Complimentary Webinar on January 26, 12 pm – 1 pm EST

Space is limited.
Reserve your Webinar seat now at:
https://www3.gotomeeting.com/register/354652590

New York State’s Attorney General has made it clear that nonprofit organizations need to show good-faith compliance with NYPMIFA or face serious consequences.  Jonathan Gudema, NYPMIFA expert and principal at Planned Giving Advisors, LLC, will discuss what New York based nonprofits need to know to fully comply with NYPMIFA.  In addition, Mr. Gudema will provide sources from top law firms and regulatory bodies that can be used to help navigate specific NYPMIFA situations.

Title: NYPMIFA: What You Need To Know To Avoid An Unfriendly Attorney General Audit

Date: Thursday, January 26, 2012

Time: 12:00 PM – 1:00 PM EST

After registering you will receive a confirmation email containing information about joining the Webinar.

System Requirements
PC-based attendees
Required: Windows® 7, Vista, XP or 2003 Server

Macintosh®-based attendees
Required: Mac OS® X 10.5 or newer