At the risk of oversimplification, individuals looking to change domicile to another state must sever as many ties as possible with their current state to demonstrate that they have abandoned the current state. In many cases, however, individuals have long-standing relationships with nonprofits in their current state that they would like to continue after their change of domicile. Although "cocktail party wisdom" suggests it is necessary to stop making contributions to those nonprofits upon a change in domicile, the good news is that this generally is not correct.
Connecticut, New York, New Jersey and Massachusetts all specifically acknowledge that the making of charitable contributions shall not be considered a factor in determining domicile. Accordingly, individuals changing domicile can continue to make contributions to nonprofits they previously supported. The rationale behind these provisions is to allow nonprofits to retain the support of their historic donors. In the absence of such provisions, individuals likely would stop making contributions to nonprofits in the state they were leaving, to avoid potentially undercutting their change of domicile. If you are involved with a nonprofit organization, consider letting your donors know they may continue making contributions without any negative impact on their change of domicile.
The news is not quite as good, however, when it comes to continuing to serve on nonprofit boards. Of the four states mentioned above, only New York and New Jersey provide that the volunteering, giving or donation of uncompensated time to a nonprofit shall not be used to determine where an individual is domiciled. Unfortunately, neither Connecticut nor Massachusetts yet has such a provision, which leads us to advise clients they should resign from nonprofit boards in those states if they are changing domicile.
We intend to work with the Connecticut nonprofit community to propose a statute similar to New York's during the current session of the Connecticut legislature. If you know of a Connecticut nonprofit interested in joining a campaign to propose legislation regarding continued service following a change of domicile, please let us know.
On January 30, Jed Davis will speak at The Knowledge Group Webcast, "Best Strategies in Protecting Your Firm Against Hackers: What Hackers Can and Cannot Do?"
Kathy Lawler and Daphney Francois wrote an article, "403(b) Plan Sponsors, Beware of Excessive Fee Litigation," for Law360. The article discusses a spate of class actions against universities that sponsor 403(b) plans and provides an in-depth analysis of allegations of fiduciary breaches under the Employee Retirement Income Security Act of 1974.
Jed Davis authored the article, "Cybersecurity for the Under-Resourced" for Bloomberg BNA.
On November 9, Darren Wallace will be speaking on a panel at Private Asset Management's Breakfast Briefing at the Lambs Club in New York City.
On October 6, Jennifer Pagnillo and Jaclyn O'Leary will be speaking at a webinar held by Trusts & Estates called, "Charitable Lead Trusts: Making the most of this philanthropic strategy."
Barbara Freedman Wand was quoted in the article "Banks Explore Multiple Avenues For Community Investment," in The Commercial Record.
Jennifer Pagnillo was mentioned in an article, "At nonprofits in southwestern Connecticut, a small army of directors on the move," in The Stamford Advocate.
John McLafferty was quoted in an article,"New pay equity law offers fertile ground for litigation," in Massachusetts Lawyers Weekly.
Jennifer Pagnillo will serve as co-chair of the Development Committee, as well as chair of the Professional Advisors Council, as a newly elected Fairfield County’s Community Foundation Board Member (FCCF).
Parsippany, N.J., July 11, 2016 - Day Pitney LLP announced today that Angela Titus McEwan has joined the firm as a partner in the Trusts and Estates practice in the Parsippany office. She joins from Archer & Greiner P.C.