Failure to do discovery dooms case against nonprofit

The failure of an event management company to do discovery to support its claim for additional compensation for work at a client’s convention has given a federal District Court judge in Pennsylvania the reason to grant a summary judgment for the defendant.

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Charities exempt under section 501(c)(3) of the Tax Code have been forbidden for years under the so-called “Johnson Amendment” from endorsing or opposing candidates for public office at any level of government. But litigation is pending that could eliminate that rule, at least for churches. Should your charity now ignore the rule to endorse a candidate?

Charities are also limited in the amount of lobbying they can do in supporting or opposing specific legislation. How much lobbying is permitted?

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Most nonprofits don't spend a lot of time looking at their Bylaws until there is a question or a dispute. That's when you need bylaws that are clear and unambiguous, so your questions on how to proceed are already answered. That's when bad bylaws can lead to unnecessary controversies or even costly litigation. Nonprofit Issues editor Don Kramer will review your current or proposed Bylaws to see if they work for you.

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SAY THAT AGAIN?

July 14, 2026

The draft of an endowed fund agreement for a community foundation called for grants to be made annually to a designated charity and provided that if the charity ever went out of business, the future grants should be made to another charity in the same location.

The agreement set forth the charity’s name and listed its location as a P.O. Box.

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Failure to do discovery dooms case against nonprofit

Failure to do discovery dooms case against nonprofit