Nonprofit defeats retaliation claim on summary judgment
A assistant to the chief financial officer of a nonprofit organization who was passed over for promotion to the CFO position and locked out of her computer access while out on medical leave has lost a claim for retaliation under the Family and Medical Leave Act. A federal District Court in Pennsylvania has held that she showed a prima facie case of retaliation but failed to show that the agency’s purported non-discriminatory reasons for its actions were merely pretextual.
D.C. Attorney General May Sue To Dissolve Nonprofit Fiscal Sponsor
Amendment to City’s Anti-SLAPP law prevents defendants from using law for motion to dismiss
The Attorney General for the District of Columbia may proceed with a suit to dissolve a nonprofit fiscal sponsor that it claims provided more than $4 million in grants, constituting more than 99% of its total grantmaking, to a related for-profit corporation, the District’s Court of Appeals has ruled.
Bylaws Function as “Constitution” Of Nonprofit Corporations
Regulation of corporate governance demands as much care and thought as the Constitution of a country
Bylaws of a nonprofit Corporation should not simply be taken “off the shelf” and adopted by the organization. The Articles of Incorporation and the Bylaws essentially form the “Constitution” of the organization and establish the rules for governance. Like all Constitutions, they should be considered carefully.
In most states, the state nonprofit corporation law provides minimum standards and default procedures if the Articles and Bylaws are silent on many issues. But the Bylaws can be used to spell out specific provisions and are particularly important in establishing the rules about who controls the organization.
Unlike a business corporation, in which, in very simplistic terms, the one who buys the most stock controls the organization, the Bylaws of a nonprofit corporation spell out the essential relationships of the participants. They are the power document of the organization.
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Gifts directly to homeless students not deductible
A taxpayer who claimed a variety of charitable contribution deductions has learned the hard way that contributions are not deductible if you don’t follow the rules. The Tax Court has sustained a decision of the Internal Revenue Service to deny more than $6500 in claimed charitable contribution deductions.
Unsuccessful grant applicant cannot oust grantmaker
An unsuccessful applicant of a grant cannot force the dissolution of the foundation that declined to make it and the transfer of the foundation’s assets to itself, even after several attempts, an appellate court in Louisiana has ruled. It has dismissed the latest of several lawsuits seeking the same relief from the courts.