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Who Owns Rights to Event Photos Taken By Volunteer for Nonprofit?

Court says pictures are owned by photographer and are not ‘works for hire’ controlled by group
The Military Sexual Trauma Movement was formed in 2018 as a 501(c)(4) organization to help survivors of military sexual trauma and other discrimination. Its leadership was all volunteers and it had no paid employees. In September, 2019, it planned several days of demonstrations and activities in Washington, D.C. to promote its agenda. At one unplanned event outside the home of the Commandant of the Marine Corps, the founder of the group made some comments that some other members considered so “abusive and confrontational” that the other members resigned from the group. They simultaneously withdrew their consent for the group to use their names and any photos of themselves “in any fashion”...

Violation of Donor Bill of Rights Insufficient to Justify Fraud Charge

Court dismisses claims against NRA Foundation brought by donors who said funds were not used for mission
Fundraisers for charity frequently cite the Donor Bill of Rights , created by the Association of Fundraising Professionals and other professional fundraising organizations, as evidence of the charity’s good stewardship of charitable contributions. But what happens when a disgruntled donor claims the charity failed to live up to the high ideals it espoused? A federal District Court in Tennessee has held that pointing to the Donor Bill of Rights on the website of the NRA Foundation, the charitable fundraising arm of the National Rifle Association, is not sufficient to meet the plausible pleading requirement of federal law and prevent dismissal of the donors’ claim that they suffered damages...

Art Group May Sell Building Covered by Unique Mosaic

Court rejects claim that preservation is part of nonprofit’s mission
An appellate court in Pennsylvania has rejected a claim that a nonprofit formed to promote the arts should be prohibited from selling its building because it had failed to adequately consider alternatives that would avoid destruction of the building and its unique mosaic façade. The Court reversed a trial court decision holding that the organization was obligated to show that the decision, “which would all but assure the destruction of the façade,” was in the best interest of the organization and the public to which it is dedicated to serve. The Painted Bride Art Center was formed in Philadelphia in 1969 as part of the “alternative space movement” dedicated to maximizing cultural diversity...

Appeals Court Orders Broader Disclosure Of Donors for Political Ads by 501(c)(4) Organizations

If case stands, it could eliminate the “dark money” issue for social welfare organizations participating in elections
The U.S. Court of Appeals for the District of Columbia has affirmed a District Court order invalidating a Federal Election Commission Rule on disclosure of donors for independent political expenditures. The Court has determined that the statute requires broader disclosure than the FEC had previously required. If this decision stands, it could require public disclosure of all donors of more than $200 to an organization that makes independent expenditures of more than $250 in a calendar year. The case was originally brought by Citizens for Responsibility and Ethics in Washington (CREW) in 2012, complaining about a failure to disclose donors for expenditures made by Crossroads GPS, a 501(c)(4...

Pennsylvania Increases Payout Permitted from Endowment Funds

Legislature also expands standing of donors to contest failure to follow restrictions
The Pennsylvania Legislature, with little publicity or fanfare, has passed two significant changes in the law governing endowments and other restricted funds. In response to the pressure on charities to spend more from their endowments during the unprecedented time of pandemic and demands for social justice, it has provided a three year authorization to spend up to 10% of the value of an endowment fund, instead of the current maximum of 7%. In H.B. 2484, Act 71 of 2020 , it has also expanded standing to allow donors and their representatives to contest a charity’s failure to follow restrictions without having to rely on the Attorney General to bring the case. Pennsylvania is the only state...

Supreme Court Extends ‘Ministerial Exception’ To Cover More Teachers at Religious Schools

Court says 9th Circuit improperly treated prior criteria as checklist to determine whether courts could hear claims of discrimination
The U.S. Supreme Court has extended the scope of the “ministerial exception” that prohibits courts from hearing claims of employment discrimination brought by teachers at religious schools. It has reversed and remanded two separate cases from the 9 th Circuit, in which the Court of Appeals had reversed trial court summary judgments in favor of the schools and held that the teachers did not meet the criteria for being a “minister” previously established by the Court. In 2012, the Supreme Court had formally recognized the “ministerial exception” that had been used by several lower courts in dismissing employment claims brought against religious organizations. It confirmed the existence of a...

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