Lead Stories

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. 

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 9th 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.

Deputy AG May Testify as Expert In Criminal Trial of Nonprofit Exec

Court says testimony helped jury understand the concept of fiduciary duty and contextualize facts

A state’s chief deputy Attorney General supervising the work of charities was properly allowed to testify as an expert witness in a criminal prosecution of a charity CEO accused of fraudulent misuse of organizational funds, the Third Circuit Court of Appeals has held.  It has affirmed the federal District Court’s opinion that the Attorney General’s testimony was limited to background topics, was relevant, and not unfairly prejudicial.

Unsuccessful College Applicants Lack Standing to Sue in Admissions Scandal

Court finds that plaintiff students failed to show a particularized injury from alleged Key Worldwide payoffs

Two students who claimed that they lost out on college admission because of Rick Singer’s alleged payoffs to get students into colleges and universities as qualified student athletes have seen their cases thrown out by a federal District Court in California.  The Court said that they had not claimed a particularized individual injury and lacked standing to sue.

Member of Nonprofit Can’t Sue To Protest Suspension of Membership Rights

Minnesota Court says Nonprofit Corporation Act requires 10% of members to join in claim to make it valid

A member of a nonprofit corporation in Minnesota may not sue individually to complain about the suspension of her membership rights, an appellate court in Minnesota has ruled.  The Court has said that the state’s Nonprofit Corporation Act requires a minimum of 50 members or 10% of the members, whichever is less, to bring a suit seeking equitable remedies.

Women Under-Represented on Boards Of Large Educational and Medical Institutions

New national study reports special barriers at nonprofits, and recommends measures for promoting change

While national attention has been paid to the urgency of getting more women on for-profit boards to improve corporate governance, little notice has been paid to many of the largest nonprofits in the country – namely universities and hospitals – many of whose boards have failed to diversify.

A ground-breaking new national study published by Nonprofit Issues® reveals some of the hurdles women face getting onto the boards of nonprofit educational and healthcare institutions (“eds” and “meds”) as well as the barriers they face to serving effectively on them.