Nonprofit Ordered to Pay $1.4 Million To Indemnify Committee Members 
Court says Board violated bylaws in denying reimbursement for settlement costs and legal fees

Former Exec Fails in Effort To Take Over Nonprofit
Court denies standing to claim membership when minutes are silent on the election

NCCUSL Postpones Recommendations For Changes In UMIFA Rules
Drafting committee has another year to try to resolve vexing issues

Ready Reference Page
IRS Proposes New Regulations To Clarify Basis
For Revocation of Exemption For Excess Benefits
Service will make judgment call based on
“all relevant facts and circumstances”

Issues Notes

• Herman to talk on insurance at “This Year in Nonprofit Law”
• Kramer to run seminar at Penn Certificate Course
• Thursday with the Editor, October 13

To the Point

I am on the board of directors at a local 501(c)(3) amphitheater that hosts concerts during the summer months. The amphitheater is in financial trouble. If the organization should fold, can the Board members be held personally responsible for the debt owed?

Lessons from Litigation

• Disqualification of board member reduces vote requirement
• Court refuses to find successor liability

Tax Matters

• IRA rollover dropped from Katrina Relief
• IRS re-establishes leave donation program

Employment Law

• Improper transfer of funds justifies dismissal