Article Archives >> Lead Stories >> May 1-15, 2008

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May Donors Control Account
Holding Their Gift to Charity?
Court finds no violation of 501(c)(3) rules
and dismisses complaint against donors, board

Does it jeopardize the 501(c)(3) charity status of an Islamic religious center if two individuals who donate $400,000 to the Center for the construction of a new mosque have sole signatory power over a Merrill Lynch account holding the contribution in the Center’s name?

Several members of a Center in St. Thomas in the Virgin Islands sued, without a lawyer, seeking to remove the donors’ names from the account and claiming that the arrangement threatens the Center’s tax-exempt status, violates their First Amendment right to freedom of religion, and constitutes a breach of fiduciary duty by the officers and directors.  A federal District Court has dismissed the case.

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Article Archives >> Lead Stories >> May 1-15, 2008




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