An appellate court in Florida has found that an agreement by an affordable housing developer to make payments in lieu of taxes is unconstitutional and unenforceable.  Because of the importance of the issue and the possibility that the ruling might pose a significant hardship on municipalities that rely on PILOTS to fund their budgets, the Court has certified the question to the state Supreme Court.  (AHF-Bay Fund, v. City of Largo, Ct. of App., Second Dist., FL, No. 2D14-408, 4/22/15.)

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.

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.

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.

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.