Retained right to direct title invalidates gift
A donor’s right to direct title of an historic theater to an organization other than the 501(c)(3) charitable recipient of a bargain sale invalidates the gift and is grounds to deny a claim for a $3 million charitable contribution deduction, the Tax Court has held.
Supreme Court Says “Church Plans” May Be Established by Church Affiliates
Decision ends years of confusion after lower courts had ruled that plans had to be established by churches
The Supreme Court has ended years of confusion among religious organizations by ruling that an employee pension plan established by religiously affiliated organizations is considered a “church plan” and not covered by the Employee Retirement Income Security Act (ERISA). Several Courts of Appeals had previously ruled that such plans would be subject to more protective ERISA requirements if not established directly by a church. (See Nonprofit Issues, March 2016.)
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.