Lead Stories

Who Should Receive Income For Work of Society?

Court interprets language of trust giving funds to Bishop for work of St. Vincent dePaul Society

For 48 years, the Archbishop of Hartford (CT) gave the income from a charitable trust to the Particular Council of the St. Vincent dePaul Society in Hartford.  When Mary Manning executed her will in the 1930s, she provided for a trust upon her death to pay income to relatives for life and then to five charities, including “the Roman Catholic Bishop of Hartford for use by him for the work of The St. Vincent dePaul Society.”

Church Members Can’t Oust Trustees from Office

Corporation does not provide for voting members so members of congregation lack right to change trustees

Membership is a church is not necessarily the same as being a member of a corporation with voting rights and the right to elect trustees or directors, a Court of Appeals in Ohio has said.  It has affirmed a trial court decision dismissing a claim by new trustees, recently “elected” by members of the church, seeking confirmation that they had ousted the old board.  (Revelation Spiritual Church of Christ v. Tussey, Ct. of App. OH, Twelth Dist., No.CA2010-03-058, 12/29/10.)

Camp Not Liable for Assault By Volunteer on Camper After Season

Court says camp had no duty to protect camper and volunteer was not acting with apparent authority

A nonprofit summer camp has no duty to protect a camper who was sexually assaulted in November while on a trip with a camp volunteer, the Supreme Judicial Court of Maine has held.  It has affirmed a trial court decision granting summary judgment to dismiss the case.  (Gniadek v. Camp Sunshine at Sebago Lake, No. Cum-10-61, 1/13/11.)

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 here. Here are a few questions recently received from readers.

How can founder be protected?

Language of Trust Allows School to Contract

Court looks to IRS Regulations to determine definition of “regular” enrollment of students

An appellate court in Wisconsin has affirmed a trial court decision allowing a private school created pursuant to a decedent’s trust to contract from a four-year college prep boarding school to a “semester away” program for students at other institutions.  It said the board’s contraction in response to financial constraints was not prohibited by the terms of the founding instrument. 

Is Exec Entitled to Advanced Legal Costs In Suit by Employer for Theft?

Court must make independent review of known facts before denying advance

An appellate court in Minnesota has told a trial court that it must make its own determination whether a former executive of a nonprofit corporation is entitled to an advance of funds to pay legal fees and costs for defense against the organization’s claims against her for fraud, conversion, breach of fiduciary duty and breach of contract. The Court said the state’s Nonprofit Corporation Act requires it to make an independent judgment when the board has refused the request.