Lead Stories

The Supreme Court has ended years of confusion among religious organizations by ruling that an employee pension plan established by religiously affiliated organizations is considered a “church plan” and not covered by the Employee Retirement Income Security Act (ERISA).  Several Courts of Appeals had previously ruled that such plans would be subject to more protective ERISA requirements if not established directly by a church.  (See Nonprofit Issues, March 2016.) 

The Supreme Court, by a 7-2 vote, has held that Missouri may not prohibit a church from applying for a grant to improve its school playground simply because it is a church organization.  The policy violates the “Free Exercise” clause of the First Amendment, the Court has said.

Attorney General Jeff Sessions has reversed an Obama-era policy of having corporate defendants fund nonprofit organizations as a part of settlements of claims for civil or criminal liability.  In a policy memorandum issued June 5, the Attorney General said the practice will stop immediately.

A ten-year volunteer for the Dallas Symphony has lost his claim for defamation and conspiracy to defame against the Symphony and a local magazine after his termination was reported in the magazine.  An appellate court in Texas has granted their motion to dismiss on appeal from a trial court denial.  But the Court of Appeal said it did not have jurisdiction to grant the Symphony’s motion to dismiss the volunteer’s claim for tortious interference with his employment.

President Donald Trump signed an Executive Order on May 4 intended to protect religious leaders and organizations that speak out on political issues, while the House Oversight Committee held a hearing the same day on legislative proposals to eliminate the prohibition on church participation in election campaigns.

A private foundation in Texas may not sue the University of Alabama in a Texas court for breach of contract for a scholarship program being operated in Alabama, an appellate court in Texas has held.  It has reversed a trial court decision allowing the case to proceed.