A federal District Court in Brooklyn has dismissed a putative class action claiming “fraud” in a CVS drug store fundraising campaign in which patrons were offered the opportunity to contribute to the American Diabetes Association at the checkout register.  It rejected the plaintiff’s claim that the failure of CVS to tell customers that it would make up the difference if the campaign fell short of its $10 million goal constituted a fraud on the public.

In an unusual case involving the donation of charitable contributions to a church, a divided 9th Circuit Court of Appeals has permitted a member of the Mormon Church to sue for allegedly false and misleading statements by the Church about its use of tithing money. 

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.