Lead Stories

Are Paintings Given for “Permanent Home” At College Considered Part of Endowment?

Court says common law doctrine of cy pres, UPMIFA are not relevant to the decision

Hotel magnate Eugene Eppley commissioned renowned American artist Grant Wood to paint a mural for the Hotel Montrose in Cedar Rapids, IA, in 1932.  When the hotel was sold in 1957, Eppley had the mural, known as “The Fruits of Iowa,” taken down and separated into seven separate panels.  He “loaned” the paintings to Coe College, where they remained on display for nearly 20 years. 

Trump Must Pay $2 Million For Violation of Foundation Rules

Judge refuses to impose double damages because of agreement to avoid recurrence of wrongdoing

President Donald J. Trump has been ordered to pay $2 million in damages for improperly using the charitable assets of his private foundation to intervene in the 2016 Presidential election and further his political interests.  A trial court judge has rejected a request by the New York Attorney General that he be ordered to pay double damages because he has stipulated to “a number of proactive conditions so that the conduct which engendered this petition should not occur in the future.”

Who Is Entitled to Bequest Left to Dissolved Church?

N.J. appellate court affirms trial court decision granting fund to nearby local church, not Presbytery

In December, 2010, Ruth Stumm executed her will, leaving one-eighth of the residue of her estate to the First Presbyterian Church of Wood-Ridge, N.J., “or its successor” to establish an endowment in the name of a local resident. 

In 2015, she was declared mentally incompetent and she died in 2016.  The Wood-Ridge church had dissolved in 2014 and transferred all of its assets to the Presbytery of the Palisades, its legal successor.  Her executor asked the court for “instructions” on the rightful recipient of the residue.

Who Has Authority to Increase Dues For Girl Scouts of USA?

Court rules that National Council of representatives has exclusive authority, denying authority of National Board

The Supreme Court of Alaska has ruled that only the National Council of the Girl Scouts of the United States, a representative body that meets every three years to elect members of the National Board of Directors, has authority to increase the dues for Girl Scouts across the country, and has held that a $10 increase approved by the National Board in 2016 is improper.

Court Refuses to Expand Scope Of Attorney-Client Privilege

Washington Court says attorney for hospital may not have confidential talks with physician in ER practice

An appellate court in Washington has refused to follow several federal Circuit Courts of Appeals and refused to permit confidential ex parte communications between an attorney representing a defendant hospital and a physician employed by an outside contractor in the operation of the hospital’s emergency room when the hospital has been sued by a patient.  The state Court of Appeals, by a vote of 2-1, has refused to expand the scope of the privilege.

Federal Court Blocks IRS Effort To Suspend Requirement for Schedule B

Says action cannot be taken without following rulemaking provisions of Administrative Procedure Act

A federal District Court in Montana has put at least a temporary hold on the Internal Revenue Service’s effort to suspend the requirement for tax-exempt organizations to file a list of their significant donors on Schedule B to the Form 990 tax information return.  The Administration had eliminated the requirement for all exempt organizations except 501(c)(3) public charities by publishing a new Revenue Procedure in 2018.  (Rev. Proc.