Lead Stories

Institute May Disaffiliate From Alumni Association

Appellate court affirms termination of right to use name after activities undermined relationship with university

The New Jersey Institute of Technology, a 130-year-old public university emphasizing science and technology, has won the right to disaffiliate from its alumni association and to deny the association the ability to use its name and logos in ways that might mislead the public.  The Appellate Division of the Superior Court has affirmed a trial court decision from 2014 upholding the disaffiliation.  (Alumni Association of New Jersey Institute of Technol

California Enjoined From Requiring Schedule B with Registration

Court says requirement to provide names of donors is unconstitutional as applied to 501(c)(3) organization

A federal District Court in California has permanently enjoined the Attorney General of California from requiring a charitable organization to file a copy of its Form 990 Schedule B disclosure of significant donors with its charitable solicitation registration application for the state.  It is the latest and sharpest decision in a series of efforts to reduce the use of Schedule B to provide information to regulators about the donors to charitable organizations.  (Americans for Prosperity Foundation

Committee Member Not Insured For Alleged Hacking Incident

Employment practices and D & O insurance do not protect against claim of “stalking”

Sally Leonard, a member of the paddling committee of the New Hampshire Chapter of the Appalachian Mountain Club, claimed that after she said that fellow committee member Thomas Todd should not be allowed to participate in a paddling committee event because of “his history of aggressive behavior toward females,” her computer was hacked and her car window was broken.  She also claimed that she was afraid for her well-being.

New Members May Take Over Nonprofit By Paying Dues and Calling Meeting

Court says bylaws contemplate membership upon payment and new members may call special meeting to replace board

A largely dormant nonprofit corporation has been taken over by 60 new members who paid their $25 annual dues, called a special meeting of members, voted out the old board of directors and replaced them with a new slate of their own choosing. 

Former Directors Lack Standing For Declaratory Action to Contest Election

Federal court dismisses complaint when plaintiffs failed to file derivative action or allege current or future personal harm

A suit contesting an election at the Association of Philippine Physicians in America Foundation has been dismissed by a federal district court in Kentucky when the plaintiffs did not follow the procedures to bring a derivative action or allege current or future personal harm.  (Pagtakhan-So v. Cueto, E.D. KY, No. 5:14-370, 2/16/16.