State May Make Grant For Church School Playground

Supreme Court says state may not disqualify applicants for benefits solely because of their religious character

The Supreme Court, by a 7-2 vote, has held that Missouri may not prohibit a church from applying for a grant to improve its school playground simply because it is a church organization.  The policy violates the “Free Exercise” clause of the First Amendment, the Court has said.

Violation of conflict policy beats retaliation charge

Termination for violation of a healthcare system’s conflict of interest policy is a sufficient non-pretextual defense to defeat a retaliation claim from a fired employee, the Eleventh Circuit Court of Appeals has held.  The Court has affirmed a District Court’s grant of summary judgment in favor of the employer.

IRS to revise 1023-EZ form

The IRS will revise the charitable tax exemption application for small organizations, according to a report in the Bloomberg BNA Daily Tax Report.

It will add questions to the Form 1023-EZ on gross receipts and asset values to ascertain whether the organization meets the qualifications for filing — having and expecting income of less than $50,000 a year for the first three years and having assets of less than $250,000.  It will also add a field to report the mission and significant activities of the organization.

Applicant loses suit for denial of grant

A federal District Court in Seattle has dismissed a suit by a disappointed grant applicant who claimed her Constitutional rights were violated when her application was denied.

Donor can’t recover gift after CEO was fired

A donor who claimed that her gifts to two nonprofit organizations were conditioned upon the organizations’ keeping their executive director for at least a year has been denied any recovery of her gifts, even though the executive director was fired in less than a year.  An appellate court in Missouri has affirmed a trial court dismissal for lack of standing.

DOJ Stops Funding for Nonprofits In Regulatory Settlements

Sessions reverses former policy of providing money to nonprofits working to remediate problems at core of dispute

Attorney General Jeff Sessions has reversed an Obama-era policy of having corporate defendants fund nonprofit organizations as a part of settlements of claims for civil or criminal liability.  In a policy memorandum issued June 5, the Attorney General said the practice will stop immediately.