What happens to bequest when church closes?
When Stanley Carpenter died in 1967, he left a farm in trust to provide income to family members and after their death to the First Presbyterian Church of Osceola, Arkansas, and the First Baptist Church of Osceola.
The First Presbyterian Church existed from the mid-1800s until it dissolved in 2004, transferring all of its assets and property to Covenant Presbytery. The Baptist church claimed that it should receive the income from the trust and the bank trustee went to court to get a resolution of the issue.
Corporate whistleblower policy may protect employee
A whistleblower protection policy in a nonprofit’s employee handbook may be sufficient to protect an employee who was allegedly dismissed for complaining about gender discrimination and for raising concerns about improper conduct of two directors, a federal District Court in the District of Columbia has ruled. The Court has refused a motion to dismiss brought by the American Accreditation Healthcare Commission (“URAC”), a nonprofit that offers accreditation and certification to managed care health plans, healthcare providers and pharmacies.
Deduction denied for modifiable conservation easement
A 22-acre conservation easement that could be modified by the donor for up to 5% of the area for up to five years is not a “qualified real property interest” and therefore its value is not deductible, the Tax Court has ruled. It has upheld the IRS disallowance of a charitable contribution deduction claimed by a limited liability company.
Joint Defense Agreement doesn’t prevent suit for malpractice
In a case of apparent first impression, the Court of Appeals of Indiana has ruled that a Joint Defense Agreement between a lawyer and a client allowing them to share confidential information in defense of criminal charges by the Internal Revenue Service does not prevent the client from suing the lawyer for theft, malpractice and breach of fiduciary duty. It has affirmed a trial court decision that barred the suit.
Bankruptcy court may recover transfer to church cemetery trust
Neither the Religious Freedom Restoration Act nor the First Amendment precludes a bankruptcy court from recovering a $55 million transfer of funds from the general accounts of Archdiocese of Milwaukee to a separate trust for the maintenance of Catholic cemeteries, the Seventh Circuit Court of Appeals has held. The Court has rejected a series of arguments from the Archbishop that the money had been set aside for perpetual care according to Canon Law.
Executor of Foundation Trustee’s Estate Has Standing to Review Foundation Actions
Court says executor needs to be able to estimate liability for excise taxes, without regard to family discord
An executor of the estate of a private foundation trustee has standing to discover materials about foundation operations when he claims he needs the information to estimate possible liability for foundation excise taxes, the Pennsylvania Superior Court has held. This is true without regard to the long-standing family discord between the parties. (In Re: Raymond G. Perelman Charitable Remainder Unitrust, Superior Ct., PA, No. 155 EDA 2014, 3/17/15.)