Fundraising Is Not “Commercial” Activity Protected by Antitrust Law

Court says nonprofit status is not dispositive, but group can bar another from trade show access

One politically conservative nonprofit organization can bar another from the annual Conservative Political Action Conference (“CPAC”) without violating antitrust laws, a federal District Court has ruled, even if the barred organization is unable to increase its prestige, goodwill, and obtain donations.  The federal District Court in Florida has held that the action is not a restraint on “trade or commerce” governed by the Sherman Act.

(c)(3)’s commissions on services generate UBIT

The commissions paid to a hospital association by vendors providing debt collection and group purchasing services to its members are subject to unrelated business income tax, the Tax Court has ruled.  They are not considered substantially related to the exempt purpose of the association and are not excluded from unrelated business income either as “royalties” or as activities carried on primarily “for the convenience” of its members.

CEO Not Entitled to Advancement Of Legal Fees for Criminal Defense

Court says officer failed to show that he had acted in the best interests of the corporations

The former CEO of two nonprofit corporations affiliated with the State University of New York Polytechnic Institute has been denied an advancement of legal fees to defend against criminal charges resulting from the corporations’ procurement practices.  An appellate court in New York has affirmed a trial court order denying payment.

Unincorporated association has problem with real estate title

The problem of an unincorporated association holding title to real estate has shown its ugly head once again in trying to ascertain ownership of a boy scout camp on Nantucket Island in Massachusetts.  A trial court awarded title to the property to the Cape Cod & Islands Council of the Boy Scouts, an incorporated organization, rather than to the Nantucket District Committee, an unincorporated association to which the property was given.  The Appeals Court of Massachusetts has reversed for further proceedings.