The Internal Revenue Service has more than tripled the collection of taxes on private college and university endowment income and excess compensation of nonprofit executives for 2022 compared to the collections in 2021, according to a recent release of tax statistics.
The California Supreme Court has overruled an appellate court decision that said that a director of a charitable corporation suing other directors for breach of fiduciary duty lost her standing to sue when she was not re-elected to the board during the litigation. (See Nonprofit Issues® Vol. XXXI, No. 3.). The Supreme Court has unanimously held that “continuous relationship” is not required to continue the litigation under the state’s Nonprofit Corporation Law.
The Ninth Circuit Court of Appeals has affirmed the imposition of an $8,465,000 penalty for the promoter of a “bogus tax scheme” involving the donation of timeshare properties for charity. (See Nonprofit Issues® Vol. XXXII, No. 1.) In doing so, the Court affirmed a trial court determination on the scope of the “activity” by which the scheme should be measured for imposition of the penalties.
