Cost to repair crucifix not deductible by evangelist

A self-proclaimed religious evangelist may not claim a charitable contribution deduction for a $6 payment to repair the “large and visible” crucifix he wears at all times during his community evangelism, the Tax Court has ruled.  It was only one of many claims totaling nearly $40,000 that the taxpayer claimed on his 2012 federal income tax return.  The Court denied most of them on the ground that they were for personal, rather than charitable, expenses, that they were not properly substantiated, and that they were not incurred in coordination with or supervised by a charitable org

Student Claims Dismissed Against College For Fraud, Breach of Duty, Breach of Contract

Court says students failed to show duties owed to them when College abruptly closed for financial reasons

A federal District Court in Massachusetts has dismissed a putative class action brought against Mount Ida College, its Board of Trustees and several officers by students upset by the abrupt closing of the institution.  They made various claims of fraud, breach of fiduciary duty, contract and privacy.

Appeals Court affirms denial of $33 million gift deduction

The District of Columbia Circuit Court of Appeals has affirmed a Tax Court decision denying a charitable contribution deduction of $33 million because the taxpayer didn’t include the cost basis and date of acquisition of the donated property on the Form 8283 claiming the deduction.  (See Nonprofit Issues®, May 2017)  The Court of Appeals said it “should be very reluctant to set to naught [the information requirement] that Congress deemed essential.”

Members Lose Standing to Sue When They Withdraw, Start Competitor

Court finds requirement for continuous membership, absence of conflict of interest, to pursue derivative action

Members of a Masonic/Scottish Rite organization lost their standing to bring a derivative suit on behalf of the organization against several of its officers when the members lost their membership rights and started a competing organization.  An appellate court in Tennessee has ruled that the plaintiffs could not fairly represent the interests of the remaining members of the original organization when they had started a new one.