Key takeaways from recent reporting by USA Today – The Arizona Republic, with insights from Handler Law partner Andrew Morton.

Recent investigative reporting by The Arizona Republic revealed that a nonprofit associated with a Walter Payton NFL Man of the Year nominee had its tax-exempt status revoked after failing to file required federal tax returns, despite continuing to publicly represent itself as a 501(c)(3) organization.

Among those quoted was Andrew Morton, partner at Handler Law and Chair of the firm’s Sports & Entertainment Law Group. Morton emphasized that nonprofit compliance is not a technicality, it is a legal obligation that directly affects donors, athletes and the integrity of charitable giving.

“When an organization tells donors their contributions are tax-deductible and they’re not, that’s a serious problem,” Morton explained. “You’re violating state law and federal law at the same time.”

The article highlights how even well-intentioned charitable efforts can create significant legal exposure when foundations fail to maintain proper filings or registrations, and how forming a new nonprofit does not automatically erase past compliance failures.

In response to these issues, the NFL has announced that beginning in 2025, compliance with federal and state nonprofit laws will be a prerequisite for Walter Payton Man of the Year nominations. The goal is to protect athletes, donors, and the credibility of one of the league’s most respected honors.

Read the full article by Jason Wolf in the Arizona Republic: Charity for Chicago Bears’ Payton nominee has tax-exempt status revoked