Nonprofit Law Primer Assesses Shifting Landscape and Top Governance Issues
May 16, 2025
Legal professionals engaged in advising and regulating nonprofit organizations gathered at the D.C. Bar on May 15 for a daylong CLE on nonprofit law. Sessions covered a broad array of topics relating to the formation and incorporation of nonprofits; tax exemption and compliance issues; licensing and charitable solicitation rules; board responsibilities and fiduciary duties; ethics issues relating to federal employees; and trending governance issues. Many sessions touched upon the resulting impacts of the ongoing overhaul of the federal government.
In her keynote address, Cara J. Spencer from the Office of the Attorney General of the District of Columbia’s Public Advocacy Division, examined OAG’s role in ensuring nonprofit compliance with applicable laws, but also acknowledged that “this is a particularly hard moment right now for our office.”
“There is a lot of uncertainty about what is going to happen at a federal level,” Spencer said. “We can’t always answer your questions, and we can’t provide legal advice, but if there’s something that we could be doing to support the nonprofit sector, or if there is information you feel we should know about, please feel free to reach out.”
OAG is involved in many aspects of nonprofit activity in the District, particularly as it relates to charitable solicitations, dissolution, adherence to tax-exempt status requirements, investigation of potential violators, and enforcement of laws relating to the operation of nonprofits.
Attendees asked about the public availability of information relating to OAG investigations, but Spencer indicated that these were confidential and not discoverable by the Freedom of Information Act. No data is provided regarding the number of investigations undertaken by OAG or the outcome of those investigations, Spencer said. “It is not made public unless and until we file an enforcement action.”
OAG does, however, communicate information resulting from its investigations to the Internal Revenue Service and the Board on Professional Responsibility, where appropriate. Spencer said this sharing of information is not compulsory, but rather at the discretion of the agency.
Spencer also provided examples of recent enforcement actions, including one taken against a housing nonprofit that purchased property at 1304 Euclid Street NW, and then sought to sell the property for private purposes. The building had for decades been used as affordable housing for low-income residents.
OAG intervened in an action that ultimately resulted in an order that the building could be sold, but proceeds would go to another organization addressing housing issues. The current tenants would be transferred to comparable units.
A later session titled “Trending Issues,” led by Benjamin Takis of Takis Nonprofit Law PLLC, covered a broad range of topics, including enforcement action taken against Casa Ruby, a nonprofit that provided transitional housing and support to LGBTQ+ youth but shuttered in 2022 due to mismanagement of funds. Its founder pleaded guilty to wire fraud in July 2024.
Attendees asked about the processes for revocation of nonprofit status, as well as common issues encountered by representatives of nonprofits. In response to one question relating to whether the failure of a board member to notify an organization of receipt of a notice from the IRS regarding the potential revocation of the organization’s status might result in mitigation, Takis suggested a practical method to prevent such an occurrence.
Attorneys for a nonprofit can ensure that they are copied on communications by filing forms establishing their power of attorney over the board member, and by filing an additional form requesting that notice be sent to their offices whenever communication is necessary. “You need to get those notices,” Takis said. “It’s a good idea to get those on file and it’s pretty easy to do and to set up.”
Regardless, Takis insisted that board members should be diligent in updating their addresses with relevant authorities and to alert their organization promptly upon receipt of any communication.
