Art Group May Sell Building Covered by Unique Mosaic
An appellate court in Pennsylvania has rejected a claim that a nonprofit formed to promote the arts should be prohibited from selling its building because it had failed to adequately consider alternatives that would avoid destruction of the building and its unique mosaic façade. The Court reversed a trial court decision holding that the organization was obligated to show that the decision, “which would all but assure the destruction of the façade,” was in the best interest of the organization and the public to which it is dedicated to serve.
Parents can’t sue religious school over students’ dismissal
A trial court in Texas has no jurisdiction to hear a breach of contract suit brought by parents of students expelled from a religious school, the Court of Appeals of Texas has held, because “any decision regarding the merits of this dispute would require judicial intrusion upon [the School’s] entitlement to manage its internal affairs according to its own policies and beliefs.”
Employees not entitled to overtime for volunteer service
Employees getting paid for eight hours of volunteering for charity are not entitled to overtime pay for the work, a federal District Court in North Carolina has affirmed. The Court has affirmed a decision by a Magistrate Judge who concluded that the program was not work covered by the Fair Labor Standards Act.
Founder of nonprofit can’t claim losses from “S” corporation
The founder of a nonprofit corporation may not claim losses on his personal tax return from the corporation he sought to classify as an S corporation. The Tax Court has ruled he is not a stockholder or owner of the nonprofit and is not entitled to a deduction.