Nonprofit leaders have some new options when it comes to how to organize their business. Recent changes to Pennsylvania law have paved the way for the easier creation of charitable entities.
On February 21, 2017, PA Act 170 of 2016 went into effect with the stated purpose modernizing, clarifying, and replacing outdated laws. Act 170 amends Title 15 (Associations Code) and Title 54 (Names) of the Pennsylvania Consolidated Statutes.
In general, Act 170 replaces the 1914 version of general partnerships, limited partnerships and limited liability companies with the Uniform Partnership Act (UPA), the Uniform Limited Partnership Act (ULPA) and the Uniform Limited Liability Company Act (ULLCA). These changes create better consistency between an LLC and Corporation, and clarify taxation and owner protection.
The big news for nonprofit leaders, however are the provisions of Act 170 which are specifically related to nonprofits, namely the creation of Nonprofit LLCs and Benefit Companies.
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Over the past few months, I have had in depth conversations with WGI, DCI and DCA ensemble directors about Copyright Law and how the changing legal landscape is affecting the Marching and Pageantry Arts. One of the main discussions is about when performing ensembles fit into the School Concert Exemption of the Copyright Act.
Let's rewind: The Copyright Act (the "Act") is a federal law that regulates the rights of creators and the rights of third parties to use licensed (i.e. copyrighted) content. The basic rule is that one cannot legally reproduce, perform or distribute the copyrighted work of another person unless: 1) you have obtained a written license from the rights holder to do so, or 2) your particular use fits into one of the exemptions contained in the Act.
Note: For the purposes of this discussion, we are not going to talk into the Fair Use Doctrine, which is a subject unto itself.
One of the exemptions contained in the Act is known as the School Concert Exemption.
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The Fair Labor Standards Act is the federal law that regulates, among other things, overtime pay for US workers. It has been a source of concern for small and big businesses that the US Department of Labor was set to enact - effective December 1, 2016 - a new rule which raised the salary cap below which workers must receive overtime pay from $455 a week to $921 per week (the "Overtime Rule"). In other words, the new Overtime Rule was about to make roughly 4 million more workers eligible for overtime: almost all workers who earned up to $47,892.00 annually.
This rule applied to all organizations: both for profits and non profits.
The compliance aspects of this were messy to say the least.
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