Conservation easement deduction cut 85%
The Internal Revenue Service has lost on most of its arguments seeking to deny a charitable contribution deduction for the gift of a conservation easement on 622 acres of land in Liberty County, GA. But it has won the economic war when the Tax Court cut the deduction from a claimed $32.6 million to only $4.7 million after comparing the expert appraisals for each side.
Nonprofit entity not victim of identity theft
A nonprofit organization offering services to immigrants in Colorado cannot be the victim of identity theft when a former volunteer uses its name to imply its endorsement of unauthorized educational programs. The Supreme Court of Colorado has affirmed the dismissal of the identity theft charge because the organization is not an individual protected by the identity theft statute and has also affirmed convictions for theft and criminal impersonation.
Animals Lose Again, Denied Standing to Sue for Rights
Court says habeas corpus law applies only to humans, not elephants
In the latest battle in the continuing fight to obtain legal rights for sentient animals, the Colorado Supreme Court has ruled that a nonprofit organization seeking to protect the rights of elephants has no standing to sue because the elephants are not “persons” entitled to the habeas corpus protection sought on their behalf. The Court has unanimously ruled that the state habeas corpus law applies only to human beings.
Employee may pursue bias claim on color, not race
An African American man “with dark skin” has been permitted to continue a suit against his employer for discrimination on the basis of color, but not on the basis of race or sex. A federal District Court in Virginia has granted the employer’s motion to dismiss the claim to the extent it was based on race or sex.
Nonprofit entitled to in-house attorney’s fees in state case
A nonprofit organization awarded attorneys’ fees in a state court case seeking public records is entitled to recover for fees allocated to the work of in-house counsel, an appellate court in Wisconsin has ruled. The state Court of Appeals has joined the “vast majority of federal authority under federal fee shifting statutes and the Freedom of Information Act that have allowed a for-profit corporation to recover attorney’s fees for in-house counsel.”
Nonprofit HOA May Use Subchapter V To File Small Business Bankruptcy Plan
Court says HOA is “engaged in commercial or business activities” and may use simplified process for reorganization plan
The 11th Circuit Court of Appeals has held that subchapter V of the Bankruptcy Code, as adopted by the Small Business Reorganization Act of 2019, may be utilized by a nonprofit homeowners’ association to provide a reorganization plan even though the debtor is not organized or operated for profit.
Court affirms jury verdict upholding foundation founder’s will
An appellate court in Maryland has affirmed a jury’s decision that a will executed by a founder of a private operating foundation in 2010, which left approximately $12.5 million of the residuary of her estate in trust for her daughter and the daughter’s children, was valid and could not be overturned for lack of testamentary capacity. The founder’s prior will existing at the time of the new will had left the residue of her estate to the Foundation.