Lead Stories

Court Orders Injunction of Venture Fund Contest For Black Women Entrepreneurs

Court of Appeals affirms standing of plaintiffs, but overturns trial court dismissal of First Amendment defense

The 11th Circuit Court of Appeals, in a 2-1 decision, has reversed a trial court refusal to dismiss a challenge to a venture capital fund contest open only to black women entrepreneurs, one of the first of a series of cases challenging the use of race as a criterion for remedial programs to assist historically disadvantaged groups.  The Court has affirmed the trial court conclusion that the plaintiff has standing to bring the case, but overturned the trial court’s refusal to dismiss on the ground that the First Amendment “may bar” the claim on the ground that the contest constitutes ex

Foundation Loses Insurance Claim For Grants Based On Fake Exemption Letter

Court says computer fraud claim is not covered because loss was not directly caused by fraudulent email

The Denver Foundation has been unable to recover from insurance on a claim of computer fraud when a non-exempt applicant submitted a fraudulently modified IRS letter to show that it was charitably tax-exempt under section 501(c)(3) of the Tax Code.  A Federal District Court in Colorado has ruled that the loss did not “directly” result from the fraudulent email.

White Entrepreneur Lacks Standing To Challenge Amazon Diversity Grants

Court says plaintiff failed to show that purported injury is “concrete, particularized, and actual or imminent”

A federal District Court in Texas has dismissed a complaint brought by a 44-year-old white woman who complained that she was discriminated against by Amazon’s diversity grant program for Black, Hispanic, and Native American owners of delivery service partners.  She claimed she was discriminated against because the grants are not available to white or Asian owners.  The Court said she had not alleged an injury sufficient to establish that she had standing to bring the case.

Foundation Not Liable For Actions of Loaned Exec

Court says grantmaker did not have control over doctor working for another agency

A U.S. private foundation that loaned a physician on its staff to an international agency that conducted nonconsensual human medical experiments cannot be held liable for the actions of the loaned executive when it did not have control over his activities, the Fourth Circuit Court of Appeals has affirmed.  The Court has upheld the earlier decision of a federal District Court in Maryland holding that the foundation could not be liable because the physician was not acting as its agent in conducting the experiments.

Utah Repeals Charitable Solicitation Registration Requirement

Will not accept registrations after May 1, will require Form 990 filing in 2025

The state of Utah has recently, and without fanfare, passed a statute (H.B.43) that repeals the requirement for most charities to file charitable solicitation registration forms with the state, commencing with the effective date of the statute on May 1, 2024.