A nonprofit youth services organization that acquired employees and programs from a related nonprofit is responsible for unpaid unemployment compensation contributions incurred by the related organization that had ceased its activities, an appellate court in Pennsylvania has ruled. The Pennsylvania Commonwealth Court has affirmed a decision by the Department of Labor and Industry that the successor organization owes nearly $300,000 in contributions, interest and penalties.

A corporation sole that had been administratively dissolved in Oregon for failure to file its annual report may be reinstated to active status even though the state outlawed the formation of new corporations sole in 2015.  The Court of Appeals of Oregon has overturned a ruling by the Secretary of State denying reinstatement to The House of R.E.A.P, a church.

A sports psychologist who has a contract with a university to provide services to student athletes has standing to sue the university for retaliation under the anti-discrimination provisions of Title IX when the university has stopped referring students to her after she reported incidents of abuse.  A federal District Court in Illinois has ruled that she is within the “zone-of-interests” to be protected by the statute.

Title VII of the Civil Rights Act prohibiting workplace discrimination specifically exempts a “bona fide membership club” that is federally tax-exempt under section 501(c). 

A federal District Court in Pennsylvania has recently decided that the Centre Hills Country Club in State College PA meets the definition and is exempt from the rules.  It has dismissed on summary judgment a claim brought by a female former employee.

A California nonprofit corporation whose corporate powers and privileges have been suspended lacks standing to contest an Internal Revenue Service determination to revoke its 501(c)(3) charitable tax-exemption.  The U.S. Tax Court has dismissed a declaratory judgment action by a private foundation seeking to overturn the retroactive loss of exempt status.

A nonprofit cooperative that operates the world’s largest fully-refrigerated wholesale produce market in the world has been rebuffed in trying to recover from its bank for embezzlement by its CEO of nearly $5.5 million in checks written on the coop’s account.  A federal District Court has issued summary judgment against the coop on all but a small claim for negligence in the final year of the embezzlement scheme.