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Club Member May Sue Individually To Protest Ouster From Membership

Requirement for multiple plaintiffs to seek equitable remedies does not apply to suit to reclaim membership, court says

A member seeking to restore his membership rights in a nonprofit club in North Dakota may sue individually and does not need others to support his claim, the Supreme Court of North Dakota has ruled.  It has reversed a trial court holding that an individual has to meet a threshold number of plaintiffs in order to bring suit.  (Marhula v. Grand Forks Curling Club, Supreme Ct. N.D., No.

Court Can’t Limit Use of Trust Income To Coverage of Deficits at Hospital

Trial court sought to assure income would be used only for local hospital after its inclusion in larger system

When a bank trustee asked for guidance on how to distribute income from eight testamentary trusts left for the benefit of Bloomsburg Hospital in Pennsylvania, there wasn’t much debate about authorizing continued use of the trust income for the Hospital, even though the Hospital had been absorbed within a large regional healthcare system. 

State May Require Donor List For Charitable Registration

Ninth Circuit says requirement does not violate First Amendment rights

California’s requirement to submit an unredacted list of major donors as part of its charitable solicitation registration materials does not violate the First Amendment, the Ninth Circuit Court of Appeals has ruled.  The Court has affirmed the denial of a preliminary injunction sought by a charity that wanted to remove the names of donors shown on Schedule B to the Form 990 that is a required part of the registration package.  (Center for Competitive Politics v.

Harvard Students Lack Standing To Challenge Endowment Investments

Court says they have no special interest beyond general public, rejects claim of investing in abnormally dangerous activities

A trial court in Massachusetts has granted motions from Harvard University and the state Attorney General dismissing a claim by University students that Harvard University divest its investments in fossil fuels.  The Court has rejected an array of creative arguments by students who claimed a special personal interest in the questions.  (Harvard Climate Justice Coalition v. President and Fellows of Harvard College, Superior Ct., Suffolk Co.,MA, No. SUCV201403620H, 3/17/15.)

Court Says PILOT Payments Are Unconstitutional

Payments in lieu of taxes are unenforceable because they violate public policy for exemption

An appellate court in Florida has found that an agreement by an affordable housing developer to make payments in lieu of taxes is unconstitutional and unenforceable.  Because of the importance of the issue and the possibility that the ruling might pose a significant hardship on municipalities that rely on PILOTS to fund their budgets, the Court has certified the question to the state Supreme Court.  (AHF-Bay Fund, v. City of Largo, Ct. of App., Second Dist., FL, No. 2D14-408, 4/22/15.)

Attorney Confidentiality Question Changes in PA Supreme Court

Released briefs suggest Attorney General used improperly disclosed information to start investigation

Recently released portions of briefs in the sealed case involving the question whether an attorney for a public charity may disclose confidential information to the Attorney General without regard to the usual standards of the Rules of Professional Conduct have cast a slightly different light on the case before the Pennsylvania Supreme Court.  (See Nonprofit Issues, February, 2015)  The briefs suggest that the ultimate issue before the Court is whether the Attorney General may utilize improperly discl

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