Donor Must Recognize Gain on Gift of Stock And Loses Deduction for Bad Appraisal
Court says gift was made when sale of stock was assured and gift of property was not properly appraised
Talk about a double whammy.
Lead Stories
Court May Remove Charity Trustee For “Serious Breach of Trust”
Appellate court affirms trial court decision to remove for multiple breaches of fiduciary duty
The Court of Appeals of Minnesota has affirmed a trial court decision removing one of the trustees of the Otto Bremer Trust, a $2 billion private foundation in St. Paul, for “serious breach of trust” under state law. The Attorney General had petitioned for the removal of all three of the Foundation’s trustees, but the trial court granted the petition only as to one of the group. The removed trustee appealed and the Court of Appeals has affirmed.
Court Dismisses Consumer Protection Suit For Impinging on Charitable Solicitation
For-profit thrift store company advertises its relationships with charities who get paid for donations to stores
The Supreme Court of Washington has dismissed a group of claims brought by the state for violation of state consumer protection law by a for-profit thrift store operator that advertised its payments to “charity partners” for contributions to the thrift store operation. The Court has refused to apply the standard for liability usually applicable to “commercial” speech to determine whether a fraud had occurred and found that the claims do not survive the “strict scrutiny” applied to charitable solicitation.
Nonprofit Hospitals Denied Real Estate Tax Exemption
Court says they were not operated free from private profit motive and did not provide sufficient free or subsidized care
A Pennsylvania appellate court has denied charitable real estate tax exemption for four hospitals in a reginal nonprofit hospital system on the ground that they did not qualify under the state’s definition of “charitable.” It affirmed three decisions from one county and reversed a decision from another.
The state Commonwealth Court has found that four hospitals in the Tower Health system in suburban Philadelphia did not operate free from private profit motive and did not provide a sufficient amount of below cost care to its patients.
Private Club Is Not Subject To Title VII Discrimination Law
Court finds that golf club meets the definition of “bona fide membership club” exempt from rules
Title VII of the Civil Rights Act prohibiting workplace discrimination specifically exempts a “bona fide membership club” that is federally tax-exempt under section 501(c).
A federal District Court in Pennsylvania has recently decided that the Centre Hills Country Club in State College PA meets the definition and is exempt from the rules. It has dismissed on summary judgment a claim brought by a female former employee.
Appropriations Act Expands IRA Distributions, Curbs Conservation Easements, And Prohibits Definition for 501(c)(4) Groups
And Prohibits Definition for 501(c)(4) Groups Congress does not want IRS to define how much electioneering is permissible for social welfare organizations
The Consolidated Appropriations Act of 2023 passed at the end of the last session of Congress includes three provisions that are of specific importance to charities and other nonprofits.