Has time run out on cleaning up GIK valuation?

Image courtesy of Adobe Stock.

Looks like the time to clean up the GIK valuation issue might be gone.

After reading about California AB 1181, I will guess you rather strongly dislike the proposed legislation that is rapidly making its way through the legislature. You probably have some serious heartburn about the bill.

In recent years, there has been major enforcement effort by:

  • IRS,
  • Federal Trade Commission and *all* state Attorneys General (how deeply upset does the nationwide AG community have to be to take collective action? To have every single one of the AGs on board?),
  • Michigan AG (with public comment the current round of enforcement effort has been split up amongst multiple AGs),
  • California AG,
  • and hints in the wind of more regulatory action many times along the way.

Do you suppose that it is possible, perhaps, just maybe, that it might be a real thing that the entirety of the federal and state regulatory system has serious, substantive problems with valuation of GIK?

 

On May 8, 2018, I said:

The nonprofit community (which I proudly consider myself to be a part of) really, really needs to address and resolve the GIK issues raised by regulators. If one of these regulatory enforcement efforts actually takes hold, we will not like the result.

Well, looks like the California AG enforcement effort has finally taken hold.

And none of us like the result.

And we will like the ripple effects even less.

 

Some previous posts:

 

Maybe there might just be a few more minutes left to clean things up. But it doesn’t look like it.

May those who have ears to hear in the nonprofit community wisely use the few seconds left on the clock.

 

Next post: Other public discussion of AB 1181.

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