Worshipper can’t stop sale of religious building

When the governing body of The Islamic Society of Essex County (NJ) decided to sell the building where it had provided religious and cultural services for many years and purchase a new building in a new location, one of the longtime worshippers objected.  After multiple complaints and amendments, she brought a derivative suit against the corporation, a claim for breach of charitable trust, and a direct cause of action against the Society and its Board.  An appellate court in New Jersey has affirmed a trial court decision dismissing all three claims.

Court Affirms Trial Court Decision Denying Termination of Charitable Trust

Decision was within discretion to determine that burdens were not “unreasonably out of proportion to the charitable benefits”

The Pennsylvania Supreme Court has affirmed a decision by a state trial court holding that a charitable trust providing support of Virginia Military Institute should not be terminated because the additional burdens of operating as a separate private foundation were not “unreasonably out of proportion to the charitable benefits” of the trust.

Foundation not entitled to attorneys’ fees

A private foundation in Pittsburgh that successfully fought off a challenge by the founder’s grandchildren to the composition of its board has been denied a claim to recover attorneys’ fees and costs that it said totaled nearly $1.5 million.

Buckeye Schedule B case certified for appeal

The Buckeye Institute case seeking to rid charities of the obligation to complete Schedule B disclosing substantial donors on the annual Form 990 tax information return has been certified for appeal to the federal Court of Appeals.  The District Court in Ohio hearing the case has certified the case for an interlocutory appeal.

Private Operating Foundations Are Hybrids

Organizations which are not publicly supported but use most of their assets and income in the active conduct of their charitable activities avoid some private foundation limitations.

Most charities exempt under Section 501(c)(3) of the Tax Code are classified either as publicly supported organizations, including churches, schools, hospitals, social service or healthcare organizations and cultural groups, or as private foundations, which are usually endowments making grants to other charities. Private foundations must function under significantly more stringent limitations, and organizations would usually rather qualify as publicly supported.

Not subscriber and not ready to buy full access?  You can buy the 3 page PDF in our store for $5.95