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.)

Community service not subject to FLSA

A criminal defendant ordered to perform community service in order to avoid conviction on minor charges is not an “employee” of the nonprofit or public agency for which the defendant works, and the labor is not covered by the wage and hour requirements of the Fair Labor Standards Act, a federal court in New York has ruled.

Directors Often Fear Risks of Personal Liability

Board members face potential liability for their own actions in causing injury to others, or in breaching a fiduciary duty to the organization.

Although board members can cut the risk of personal liability by conforming their conduct to the appropriate standards, they cannot control whether or not they will be sued. Therefore, they should be sure that the organization maintains proper insurance to protect them against foreseeable hazards, including general liability coverage, professional liability coverage where appropriate, and directors and officers liability insurance.

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