Low-income housing rented to low-income residents is exempt

The Supreme Court of Minnesota has affirmed a decision of the state Tax Court that property owned by a low-income housing charity and rented to low-income residents is exempt from real estate tax.  The taxing authority had argued that the charity had to provide additional services in order to qualify for exemption.

Employee may pursue whistleblower suit

An employee of the Zionist Organization of America, a New York not-for-profit corporation, may pursue a claim under the New York statute requiring certain nonprofits to adopt and implement a whistleblower protection law.  An appellate court in New York has reversed a trial court decision dismissing the whistleblower claim because the employer failed to refute the plaintiff’s allegation that he was an employee of the corporation.

Foundation Not Liable For Actions of Loaned Exec

Court says grantmaker did not have control over doctor working for another agency

A U.S. private foundation that loaned a physician on its staff to an international agency that conducted nonconsensual human medical experiments cannot be held liable for the actions of the loaned executive when it did not have control over his activities, the Fourth Circuit Court of Appeals has affirmed.  The Court has upheld the earlier decision of a federal District Court in Maryland holding that the foundation could not be liable because the physician was not acting as its agent in conducting the experiments.

501(c)(3) status does not create jurisdiction for Title IX

Receipt of section 501(c)(3) recognition of charitable exempt status from the Internal Revenue Service does not constitute “federal financial assistance” that subjects a private religious school to the anti-discrimination provisions of Title IX of the Education Amendments of 1972, the Fourth Circuit Court of Appeals has ruled.  In a case that drew amicus briefs on behalf of more than 15 independent and religious school groups, the Court has ruled that receipt of 501(c)(3) status does not constitute federal financial assistance as contemplated by the law.

Fraternity member denied reinstatement of membership

A former member of the Alpha Phi Alpha fraternity at Chicago State University has lost a claim against the national fraternity to reinstate his lifetime membership.  A federal District Court in Indiana has dismissed his pro se motion for summary judgment and dismissed the case.

Utah Repeals Charitable Solicitation Registration Requirement

Will not accept registrations after May 1, will require Form 990 filing in 2025

The state of Utah has recently, and without fanfare, passed a statute (H.B.43) that repeals the requirement for most charities to file charitable solicitation registration forms with the state, commencing with the effective date of the statute on May 1, 2024.