Trustees Can’t Oust Directors And Cut Support for Program
Trustees are not helped by Volunteer Protection Act when they have acted beyond the scope of their authority

Foundation Can’t Recover Grant When Grantee Goes Bankrupt
Court follows dissolution priority of statute and refuses to impose trust conditions on fund

Alternate Beneficiary Can’t Recover When Property for Center Is Sold 
Court holds that bequest was not subject to condition subsequent that requires payment

Residents Can’t Sue Directors Over Sale of Hospital
Citizens have no standing to contest actions by board of nonprofit corporations

Nonprofit Law YOU Want to Know
We regularly feature answers to questions from readers in our “To the Point” column. Here are some of the questions recently received from readers.

Issues Notes

• Kramer to participate In two Bar Institute programs
• Need a Binder for 2006?
• Thursday with the Editor, January 12, 2006

To the Point
At the last election of officers, the members voted for officers for terms of two years. Before the next election, the Board extended the terms for another year. The bylaws used to require that any changes had to be approved by the members, but the Board changed the rule so they can make changes without notice or approval from the members. Are there any IRS rules that vest power in the members?

Lessons from Litigation

• What’s in a Name?
• Court lacks jurisdiction to cite church leadership for contempt

Tax Matters

• No deduction for tuition for religious school
• Applicant failed to exhaust administrative remedies

Employment Law

• Three-week delay of investigation is not excessive