Lead Stories

Exec Without Insurance When State Challenges Pay

Court says policy exclusion of claims for wages, benefits, precludes coverage

The executive director of two agencies serving the elderly, who won a case brought by the State of West Virginia against him for excessive compensation and benefits, has been denied insurance coverage under the agency’s policy.  A federal District Court in West Virginia has held that the claim is barred by an exclusion of claims involving “wages, salaries and benefits.”  (Graham v. National Union Insurance Co. of Pittsburgh, S.D. WV, No 1:10-00453, 2/17/11.)

No "Professional” Standard of Care To Find Negligence on Bike Tour

Court says safety standards are not outside the common understanding of the jury

When a participant in a cross-country bicycle tour was hit by a car and killed during the ride, his estate sued both the driver of the car and the nonprofit tour association that organized and sponsored the tour for negligence.  The association argued that the case should be dismissed against it because the plaintiff had not provided expert testimony that it had violated the professional standard of care for tour organizers.  A federal District Court in Washington has disagreed.

Attorney Must Deliver Files To Surviving Entity after Merger

Agreement and statute provide that all rights and property of merged corporation vest in surviving corporation

An attorney who represented an Oklahoma Girl Scout Council in employment matters has been ordered to transfer all of her client files to the surviving Council after the merger of her client and another Council.  The Supreme Court of Oklahoma has held that the files belong to the surviving entity by virtue of the merger agreement and state law. (Girl-Scouts—Western Oklahoma v. Barringer-Thompson, No. 108676, 3/29/11.)

Director Liable to Association For Breach of Fiduciary Duty

Director-manager charged unauthorized fees, used funds for personal benefit, falsified records

A member of the board of directors of a nonprofit condominium association who also managed the association has been found liable for breach of duty to the association and ordered to pay damages and the association’s attorney fees.  An appellate court has affirmed a trial court decision it said was supported by competent, credible evidence.  (Mauger v. Inner Circle Condominium Owners Association, Ct. of App., OH, No. 10CA0046, 3/31/11.)

Deduction denied for gift of land

The founder of a 501(c)(3) literacy program has been denied a charitable contribution deduction for real estate she claimed she gave the organization when the deed was never recorded and the original was lost.

Nonprofit Law YOU Want to Know

We regularly feature answers to questions from readers in our “To the Point” column. The full list can be viewed on the site.

Here we feature questions from our recent webinar on charitable solicitation registration.  You can hear the entire program by purchasing access in our Bookstore.  These responses are based on the assumption that the organization involved is not excluded or exempted from the registration requirement.  Any organization soliciting charitable contributions should check the state law of any state in which it is soliciting charitable contributions to see if it is required to comply with registration requirements.  Such laws