Foundation Director May Approve Grant To Charity on Whose Board She Sits

Court throws out challenge by other director who claimed that board was not properly constituted

A federal District Court in Indiana has entirely dismissed a suit brought by the son of the founders of a family foundation who claimed that the foundation’s board was not properly constituted and that grants awarded by the board are unlawful.  He complained particularly about grants to a university on whose board one of the foundation’s directors sits.  (Doermer v. Callen, N.D. IN, No. 2:15-CV-154, 11/9/15.)

Attorney Can’t Send Letter To Directors Represented by Counsel

Sending agency’s board a claim letter violates Rule 4.2 of the Rules of Professional Conduct

An attorney suing a nonprofit agency for the wrongful discharge of his client may not send a claim notice to the entire board of the agency asserting that they could be personally liable for a “false and libelous” counterclaim filed “with malice” against his client.  An appellate court in Connecticut has affirmed a protective order issued by the trial judge preventing the lawyer from having further contact with the directors without the consent of their lawyer.  (

IRS can’t withdraw publication of previous ruling

The Internal Revenue Service does not have the statutory power to withdraw a previously issued letter revoking the charitable status of a nonprofit organization or the accompanying report that spelled out the reasons for the decision.  The Tax Court has denied the request from an organization that reached a settlement with the IRS that involved withdrawing the original notice and issuance of a new one.

Volunteer Officer can’t claim retaliatory discharge

The right to claim damages from a retaliatory discharge is a right of employees whose firing violates a clear mandate of public policy, an appellate court in Illinois has said.  It is not a right that extends to a volunteer officer of a nonprofit professional association.