Lead Stories

Non-religious Nonprofit May Seek Protection Under Religious Freedom Restoration Act

Court of Appeals says corporation may argue religious infringement in denial of approval for supervised illegal drug use program

A non-religious nonprofit corporation may argue that its religious freedom has been infringed by the government’s denial of approval for a program to address the abuse of opioids through overdose prevention services, including supervised illegal drug use, the Third Circuit Court of Appeals.  It has returned the case to the District Court in Philadelphia to determine whether the denial violates the corporation’s religious freedom under the Religious Freedom Restoration Act.

Nonprofit School Trustee Is Not Agent Protected from Retaliation under FCA

False Claims Act does not protect trustee fired after questioning use of funds from Covid programs

A trustee of a nonprofit private secondary school is not an “agent” subject to protection from retaliation under the federal False Claims Act, a federal District Court in South Carolina has ruled.  The trustee’s claim has been dismissed on summary judgment.

IRS Proposes Deal to Ignore Johnson Amendment for Churches

Proposed consent judgment would prohibit enforcement of electioneering prohibition against two Texas churches

The Internal Revenue Service has joined with two Evangelical churches in Texas and the National Association of Religious Broadcasters in proposing a settlement of their litigation to overturn the so-called “Johnson Amendment” to the Tax Code that prohibits churches and other charities from endorsing or opposing candidates for public office.  (See Nonprofit Issues®, Vol. XXXIV, No. 4)

Nonprofit Directors Immune From Defamation Claims

Former director has no claims against organization that had been dissolved

Directors of a Minnesota nonprofit corporation who were sued by another director for defamation are immune from liability under the state’s volunteer immunity law, an appellate court in Minnesota has ruled.  The director’s claim for vicarious liability of the corporation has also been denied because the organization had already dissolved.

Catholic Charities Entitled to Religious Exemption Under Unemployment Comp Law

U.S. Supreme Court says denial violates First Amendment for creating different standards based on theological beliefs

The U.S. Supreme Court, as expected, has reversed a decision of the Wisconsin Supreme Court and held that the Catholic Charities Bureau and four affiliates in Superior WI qualify for the religious exemption to the state unemployment compensation law.  In a unanimous decision, the Court had held that the state court’s interpretation of the rule does not survive strict scrutiny under the First Amendment.