Former trustee lacks capacity to sue nonprofit
A former trustee of a separately organized state chapter of the Arthritis Foundation has no legal capacity to sue the national organization to control use of funds passed from the local to the national following dissolution of the local chapter. An appellate court in Ohio has affirmed a trial court ruling dismissing the complaint, while holding that the basis for dismissal was a lack of legal capacity to sue rather than a lack of standing to sue.
IRS issues guides on title-holding companies
The Internal Revenue Service has issued two new Technical Guides, described as “comprehensive, issue-specific documents that update and combine Audit Technique Guides with other technical content.” The new Guides are TG 2 concerning single-parent title-holding corporations exempt under section 501(c)(2) of the Tax Code and TG 25 for multiple-parent title-holding corporations exempt under section 501(c)(25).
Unrelated Third Party Unable to Revive Lapsed Corporation
Court voids revival by person with no prior connection who wanted to control real estate through merger
When William N. Ford, Sr., the president of the Sterling Foundation, sought to purchase real estate in New Mexico on which to run an addiction and treatment center, he was rebuffed by Susan Lynn Lavendar Baran, the president of the Ann Wigmore Foundation that owned the land. As an alternative after several further attempts to buy the property failed, on November 12, 2018, Ford suggested that the two nonprofits merge. Lavandar (as she was called throughout the ultimate Court opinion) declined that offer as well.
501(c)(4) may be criminally tried in absentia
A 501(c)(4) social welfare organization formed to deal with funds raised in an online campaign to build a wall along the Southern border of the U.S. may be tried in absentia when its lawyer has withdrawn for not being paid and no other attorney has appeared on the organization’s behalf, a trial court in New York has ruled.
Directors of Nonprofit Corporation Have No Fiduciary Duty to Members
Court dismisses case claiming that director breached fiduciary duty to member
A director of a nonprofit corporation has a fiduciary duty to the corporation but only to the corporation and not to the individual members of the corporation, a federal District Court in New Jersey has ruled. It has dismissed, without leave to amend, a second amended complaint by a member of the National Association of minor league baseball teams against a member of the board.