A director of a nonprofit corporation who brought suit against her fellow directors for breach of fiduciary duty has lost her standing to continue the litigation when not re-elected to the board in the annual elections, an appellate court in California has ruled.  But her suit is not necessarily terminated because the Court remanded the case to the trial court to see if the state Attorney General would want to intervene or grant “relator status” to the director or another individual to carry the case forward.

The Attorney General of Hawai’i is authorized to subpoena bank records of a nonprofit organization in connection with an investigation of the organization’s qualification for charitable status, the Supreme Court of Hawai’i has ruled. But the subpoena is subject to normal limitations and constitutional objections.

In a recent blast on the National Association of State Charity Officials’ email list, the Attorney General proclaimed the victory on the question of authority, but failed to mention the limitations imposed by the state courts.

The Internal Revenue Service has denied 501(c)(3) exemption as a church to a group whose sacrament is based on use of a hallucinogenic drug. The IRS has said it is neither organized nor operated exclusively for charitable purposes and also fails the associational test for a church.

A former state senator who operated a charity out of his senate office has been unable to convince the Tax Court that he is not a disqualified person with respect to the charity because he held no formal governing position within the organization.  The Tax Court has ruled that former Pennsylvania state senator Vincent Fumo, who was previously convicted on 34 counts relating to a scheme to defraud the charity, was a disqualified person because he was in a position to exercise substantial influence over its affairs.