Lead Stories

Club May Terminate Members For Failing to Meet Bylaw Requirements

Directors have fiduciary duty to corporation and membership generally, not to individuals

A private fishing club organized as a nonprofit corporation in Kentucky has the authority to remove members who fail to meet the bylaw requirements for membership, the Court of Appeals of Kentucky has held.  The members have no claim for breach of fiduciary duty against the directors who made the decision because the directors owe their fiduciary duty to the corporation and membership has a whole, not to individual members.  (Fenley v. Kamp Kaintuck, No. 2010-CA-001926, 11/10/11.)

U.S. Supreme Court Confirms “Ministerial Exception” in Employment Law

Court says government can’t tell religious organizations who they must hire as “ministers” to promote faith

A unanimous U.S. Supreme Court has confirmed the existence of a Constitutionally-required “ministerial exception” that prevents the use of standard employment discrimination law against religious institutions selecting “ministers” who personify their beliefs and promote their faith.  But the Court has left for later decisions a determination of the exact contours of the definition of a “minister.”  (Hosanna-Tabor Evangelical Lutheran Church and School v.

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. 

When should we defend volunteer accused of crime?

Charities Lose Bequests When Donor Doesn’t Change Will

Handwritten instrument failed to provide bequest when man’s wife predeceased him by several years

In 1984, Irving Duke prepared a handwritten will in which he left everything to his wife except for the $1 bequest he used to cut his brother out of the estate. He also provided that if he and his wife died simultaneously, his estate would be divided between the City of Hope in the name of his sister, and the Jewish National Fund to plant trees in Israel. 

Court Approves Part Of Cy Pres Order on Fisk Art

Says trial court had no authority to require part of sale proceeds to be placed in endowment

The Court of Appeals of Tennessee has approved the part of a cy pres order authorizing Fisk University to sell a one-half interest in the Steiglitz art collection to Crystal Bridges Museum of American Art in Bentonville, AR, for $30 million, but has reversed that part of the order that required Fisk to put $20 million into an endowment for maintenance of the collection.  The Court of Appeals said the trial court had no authority to impose the additional requirement. (In Re: Fisk University, No.

Former Employee May Sue Home For Reading Personal E-Mail

Staff was checking for business messages while employee was out on sick leave

The former food services director of a nonprofit home for seniors has been permitted to proceed with a suit against her employer under the federal Stored Communications Act after her boss’s administrative assistant accessed her company computer during her absence and printed out more than 30 personal e-mail messages from her personal account.  An appellate court in Illinois has held that it was improper to dismiss the claim on a motion for summary judgment.  (