Sunday, June 11, 2017

Settlement Agreements no Longer Include Nonprofits

Ruth McCambridge from The Nonprofit Quarterly reports that Attorney General Jeff Sessions has put an end to the practice of nonprofit payments being part of settlement agreements agreed upon by corporations and the U.S. Department of Justice.

This practice was made popular during the Obama administration, and would often include corporations making payments to nonprofits that operated in their general field. Some examples include JPMorgan Chase paying $7.5 million to the American Bankruptcy Institute, and Volkswagen paying $2 billion to “fund zero-emission technology and infrastructure and to promote zero-emission vehicles.

Now, The U.S. treasury will receive all settlement funds (minus a few exceptions) instead of said monies flowing to nonprofits in the field of the rule violator. For the time being, it appears “the use of settlement money to remediate a situation through a nonprofit . . . is prohibited.”

 

David A. Brennen

http://lawprofessors.typepad.com/nonprofit/2017/06/settlement-agreements-no-longer-include-nonprofits.html

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