News Briefs for April 24, 2014

NEW YORK JUDGE STRIKES GOVERNOR’S PLAN TO LIMIT NONPROFIT EXECUTIVE PAY

A New York State judge struck down a 2012 executive order by Gov. Andrew Cuomo that capped executive compensation at $199,000 at nonprofits that receive a significant amount of state money. Ruling on a lawsuit pursued by Professional Agencies for Children’s Therapy Services, Justice Thomas Feinman said the governor had crossed the line by enacting rules that the legislature had previously rejected. A spokeswoman for Attorney General Eric Schneiderman said the state planned to appeal the ruling.

IRS PLEDGES TO REWRITE PROPOSED RULES TO LIMIT NONPROFIT POLITICAL ACTIVITY

The Internal Revenue Service plans to rewrite controversial proposals to regulate politicking by 501(c)(4) nonprofits, John Koskinen, the new IRS commissioner, told USA Today. The draft rules aim to curtail groups that critics say are abusing their nonprofit status by conducting mostly partisan activities without meeting a federal requirement to disclose their donors.

CHARITY TELEMARKETER THAT HAS FACED STATE CHARGES FILES FOR BANKRUPTCY

Associated Community Services, a prominent charity telemarketer and the subject of multiple state investigations over its fundraising methods, has filed for Chapter 11 bankruptcy. The company, which listed more than 39 creditors in court documents, said the bankruptcy would give it time to restructure to serve its clients more efficiently. Although it denied using deceptive practices, the telemarketer agreed this year to pay $45,000 to settle with the Michigan attorney general’s office over hundreds of alleged violations, including misleading older donors.

GOOGLE DIRECTOR LEAVES WORLD VISION BOARD OVER GAY-MARRIAGE POLICY FOR WORKERS

Jacqueline Fuller, Google’s director of giving, resigned from the board of World Vision to protest the Christian aid charity’s reversal of a decision to allow the hiring of people in same-sex marriages. Ms. Fuller said in an email message to the Associated Press that she is a “huge fan” of the charity’s work helping the poor but left because she disagreed with the new policy. A spokeswoman for the charity said no other board members have resigned over the issue.

BLOOMBERG PLANS TO SPEND $50-MILLION THIS YEAR ON GUN-SAFETY ADVOCACY

Michael Bloomberg announced that he plans to spend $50-million this year to fight gun violence, with some of the money to be used to help finance a new advocacy group that aims to “counter the Washington gun lobby.”

EVEN AFTER SANDUSKY SCANDAL, PENN STATE U. SURPASSES $2-BILLION FUNDRAISING GOAL

Pennsylvania State University, rocked in recent years by a child sex-abuse scandal, announced it has surpassed its $2-billion goal in a seven-year fundraising drive that closes on June 30. Donors have contributed $2.1-billion so far. Penn State said last November it would pay almost $60-million to victims of Jerry Sandusky, a former assistant football coach who is now in prison.

OBAMAS DONATE 12.3% TO CHARITY, DOWN FROM 25% IN 2012; BIDENS GIVE 5%

President Obama and his wife, Michelle, donated $59,251 to charity in 2013, or 12.3 percent of their adjusted gross income of $481,098, according to their tax returns. The biggest gift, $8,571, went to the Fisher House Foundation, which provides services to military families. Their giving was down from 2012, when they earned more from book sales and donated $150,034, or almost 25 percent of their income. Vice President Joe Biden and his wife, Jill, gave $20,523 to charity in 2013, which was 5 percent of their adjusted gross income of $407,009.

AMERICAN RED CROSS PROVIDES LITTLE DATA ON SPENDING AFTER SANDY, REPORT SAYS

The American Red Cross has provided little data about how it has used $312-million in donations for victims of Superstorm Sandy, according to a report by the nonprofit news outlet ProPublica. The Red Cross releases raw numbers of specific services provided, but gives dollar-figure breakdowns only in broad categories like “food and shelter” and “housing and community assistance,” the report says. Red Cross spokeswoman Anne Marie Borrego said the group regularly updates its website with articles about how it is spending disaster donations.