Lead Stories

The separate assets of 31 Catholic churches, schools, cemeteries and other charities held in a pooled investment account of the Catholic Diocese of Wilmington (DE) are available to pay the debts of the Diocese in bankruptcy, according to the bankruptcy court in Delaware.  The Diocese held the funds in trust for the benefit of the organizations, but could not meet the burden of specifically tracing the funds, the Court said.  The entire fund (with one exception for a group with a different arrangement) was therefore available for the general creditors of the Diocese.  (In

We regularly feature answers to questions from readers in our “To the Point” column. The full list can be viewed here. Here are a few questions recently received from readers.

Can only rich form 501(c)(3)?

I am interested in starting up a 501(c)(3) but have read that none of the principals of the organization are allowed to obtain monetary or material benefit.  If that is the case, how does anyone on the board get paid? Can only rich people form a (c)(3)?  --From the Website.

Article Archives >> Lead Stories >> September 16-October 15, 2010

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Court Refuses to Consider Start-up
As Successor to Hearing Dog Program
Trust fund given to SPCA for substantially reduced effort
even though staff left to begin full-service program based on old model

At the time that Gloria Berry, surviving beneficiary of a trust jointly established with her husband, died in 2007, the San Francisco Society for the Prevention of Cruelty to Animals ran a program known as Hearing Dogs for the Deaf.  It was a comprehensive program to obtain and train dogs to alert their owners to important sounds such as smoke alarms, doorbells, telephone and alarm clocks.  With a full time staff of three and several part-timers, the SPCA trained and evaluated the dogs, provided follow-up training for dogs and their owners, provided supplies and did specific fundraising for the program.

bylaw provision limiting the liability of a nonprofit yacht club for damages to any boats of the members is binding against members who suffered damages when a fire broke out in the club’s winter storage facility, the 1st Circuit Court of Appeals has affirmed.  (In Re: Martin v. Metropolitan Yacht Club, 1st Cir., No. 09-1730, 8/5/10.)

When litigation erupted among many members and the club, the club moved for summary judgment that it was not liable to anyone under the bylaw provision that said:  “The Club expressly absolves itself … and each member agrees that the Club may absolve itself from any liability for damages to any boat….  Said absolution from liability shall include but not be limited to … Fire … [and] Negligent acts or omissions.”

When Jerry Tuccio gave 42 acres of land to the Connecticut Yankee Council of the Boy Scouts of America in 1972, he provided in the deed that if the scouts ever failed to use the property for scouting purposes, the parcel “shall be conveyed by the Grantee to the Town of Ridgefield.” 

We regularly feature answers to questions from readers in our “To the Point” column. The full list can be viewed here. Here are a few questions recently received from readers.

Must board fire president?