Lead Stories

Improper Selection of Directors Voids Payments for Pastor’s Wife

Bylaws of church were inconsistent with official doctrine and contract could not be validly approved

The bylaws of the Refuge Temple Church of God in Christ, a South Carolina nonprofit corporation founded by Pastor Elder Edward Jenkins in 1997, provide that the pastor can fill vacancies on the board with the advice and consent of the other directors. 

Social Club May Eject Member Without Hearing or Opportunity to be Heard

North Carolina court says state Nonprofit Corporation Law requires only good faith process, not a hearing

The North Carolina Court of Appeals has affirmed a trial court decision upholding the termination of a golf club membership at a special meeting of the board on the basis of the member’s dispute with a golf shop employee and his “cumulative disciplinary history” of two other sanctions while a member of the Club.  The Court rejected the member’s argument that a hearing and an opportunity to be heard were required as a matter of law.

NY Attorney General Sues Accountants For Fraud in Charitable Solicitation

State claims auditors willfully overlooked fraud and failures of internal controls at charity

The New York Attorney General’s office has filed a complaint against an accounting firm and its founder for fraudulently providing unqualified financial statements for a charity closed down by the state.  The complaint says that McEnerney, Brady & Co. and its founder Edmond Brady “facilitated a multi-year scheme of fraudulent not-for-profit conduct by falsifying [the charity’s] financial statements.”

Clinic President Must Forfeit $2 Million In Funds Used for Personal Benefit

After theft and fraud convictions, Court orders repayment of money received for excessive rent, renovations, and theft

The former board president of a nonprofit mental health clinic in Philadelphia has been ordered by a federal District Court to forfeit $2,041,750 in funds she improperly acquired from the Clinic for her personal benefit.  She had previously been convicted on 53 counts of fraud, theft and false statements on tax returns for her various schemes.

Renee Tartaglione became the president of the Juniata Community Mental Health Clinic and engineered an elaborate scheme to siphon funds from the agency, which is spelled out in detail in the Court’s opinion.

Impecunious Donor Ordered To Fulfill $400,000 Pledge

Court grants judgment when donor says it is unable to make payments over five years

The Appalachian Bible College in West Virginia has won an unopposed judgment in its suit to enforce a $400,000 pledge from a corporate donor. The donor had said it was financially unable to meet the commitment.

Do Corporations Use Charitable Gifts As Means to Obtain Political Influence?

New study estimates 7.1% of corporate charitable giving, totaling about $1.3 billion annually, is politically motivated

A new academic study has concluded that 7.1% of all U.S. corporate charitable giving, about $1.3 billion annually, is politically motivated and correlated with the relevance of the Congressional representative of the charity’s district to the business interests of the corporation.  The authors conclude that this charitable giving may be a form of political influence that goes mostly undetected by voters and shareholders, and is directly subsidized by taxpayers.