Lead Stories

Unrelated Third Party Unable to Revive Lapsed Corporation

Court voids revival by person with no prior connection who wanted to control real estate through merger

When William N. Ford, Sr., the president of the Sterling Foundation, sought to purchase real estate in New Mexico on which to run an addiction and treatment center, he was rebuffed by Susan Lynn Lavendar Baran, the president of the Ann Wigmore Foundation that owned the land. As an alternative after several further attempts to buy the property failed, on November 12, 2018, Ford suggested that the two nonprofits merge. Lavandar (as she was called throughout the ultimate Court opinion) declined that offer as well.

Directors of Nonprofit Corporation Have No Fiduciary Duty to Members

Court dismisses case claiming that director breached fiduciary duty to member

A director of a nonprofit corporation has a fiduciary duty to the corporation but only to the corporation and not to the individual members of the corporation, a federal District Court in New Jersey has ruled. It has dismissed, without leave to amend, a second amended complaint by a member of the National Association of minor league baseball teams against a member of the board.

Animals Lose Again, Denied Standing to Sue for Rights

Court says habeas corpus law applies only to humans, not elephants

In the latest battle in the continuing fight to obtain legal rights for sentient animals, the Colorado Supreme Court has ruled that a nonprofit organization seeking to protect the rights of elephants has no standing to sue because the elephants are not “persons” entitled to the habeas corpus protection sought on their behalf. The Court has unanimously ruled that the state habeas corpus law applies only to human beings.

Nonprofit HOA May Use Subchapter V To File Small Business Bankruptcy Plan

Court says HOA is “engaged in commercial or business activities” and may use simplified process for reorganization plan

The 11th Circuit Court of Appeals has held that subchapter V of the Bankruptcy Code, as adopted by the Small Business Reorganization Act of 2019, may be utilized by a nonprofit homeowners’ association to provide a reorganization plan even though the debtor is not organized or operated for profit.

Boy Scouts May Sell Camp Held in 80-Year-Old Trust

Court says proceeds must be used for camping by local scout troops

In 1944, George G. Averill conveyed 330 acres of land in Kennebec County, ME, now known as Camp Bomazeen, to himself and others as trustees to be used as a camp for the Boy Scouts of America. The deed allowed the trustees to sell any or all of the property with written consent of the local council of Boy Scouts and provided that the proceeds of the transaction “shall be used for the purposes and under the conditions” of the trust deed.

DAF Assets Rise Almost 10% in 2023, But Contributions to DAFs Drop 21%

Total number of funds, payout rate, and value of grants remain essentially the same in National Philanthropic Trust report

The value of assets held in donor advised funds throughout the nation rose nearly 10% in 2023, from $228.9 billion in 2022 to $251.5 billion in 2023, reflecting the significant increase in market value of investments during the year. (The S&P 500 Index was up 26.3% for the year.). But the total value of contributions to DAFs dropped more than 21% from $75.9 billion in 2022 to $59.4 billion in 2023.

July Webinar

From Policy to Practice: Optimizing Your Nonprofit Personnel Handbook
Wednesday, July 9, 2025
1:30-3:00 PM ET

How good is your personnel policy handbook?

Whether your nonprofit has 10 employees, 200 employees, or more than 1000, you probably have a personnel policy “handbook.” You give it to new employees and require that they sign to acknowledge receipt.

But do they actually read it? If they do, does it cover the policies you want them to understand? Does it reflect the type of working environment you want to maintain? Does it cover issues required by law? In a way that complies with the law?

Does it cover available leaves? Disciplinary procedures? Remote work? Whistleblower protections? Conflicts of Interest? Social media policies?

Does it protect your ability to change the policies? Do you have a way to update it regularly, with changes going to all employees?

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Nonprofit bylaw review

Don Kramer will review and comment on your own current or proposed bylaws

Do your Bylaws reflect the way you actually operate? Do they protect the interests of those who should be protected? Do they spell out clearly how to deal with governance issues? Or do they create uncertainty for those who have to implement them?

Most nonprofits don't spend a lot of time looking at their Bylaws until there is a question or a dispute. That's when you need bylaws that are clear and unambiguous, so your questions on how to proceed are already answered. That's when bad bylaws can lead to unnecessary controversies or even costly litigation. Nonprofit Issues editor Don Kramer will review your current or proposed Bylaws to see if they work for you.

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SAY THAT AGAIN?

May 30, 2025

The loan agreement says: “All contractual rates of interest chargeable on the outstanding Term Loans shall continue to accrue and be paid even after default, maturity, acceleration, judgment, bankruptcy, insolvency proceedings of any kind or the happening of any event or occurrence similar or dissimilar.”

A former banker friend says that “any event or occurrence similar or dissimilar” is some lawyer “fancy talk” for “the kitchen sink!”

See our "Say That Again" collection

Special Report Available

Increasing Gender Diversity on the Boards of Nonprofit Eds and Meds: Why and How to Do It

This report provides a rare inside view on barriers women face to selection and success that are particular to nonprofit organizations and makes specific recommendations on how to improve the gender ratio.
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