Be careful what you ask for

Brentwood War Memorial, a local post of the Veterans of Foreign Wars, allegedly charged a $5 cover charge for the 14 members and guests who came to the Post on November 22, 2014 and watched a pay-per-view prize fight between Manny Pacquiao and Chris Algieri.  According to J & J Sports Productions, which claimed it had exclusive nationwide commercial distribution rights on the fight, the Post did not pay for a license to show the event.  J & J filed suit in the federal Eastern District Court in New York.

Trust to hold residue “in perpetuity” is not charitable

Ollie Waid, Jr. established a revocable living trust in 2010 and made several revisions before he died in 2018.  The final version provides that, after making some specific bequests to individuals and charities, the trustee “shall hold, distribute and pay the remaining principal and undistributed income in perpetuity; subject, however, to limitations imposed by law.”  The residuary estate was valued at approximately $4.6 million.

Who Has Authority to Increase Dues For Girl Scouts of USA?

Court rules that National Council of representatives has exclusive authority, denying authority of National Board

The Supreme Court of Alaska has ruled that only the National Council of the Girl Scouts of the United States, a representative body that meets every three years to elect members of the National Board of Directors, has authority to increase the dues for Girl Scouts across the country, and has held that a $10 increase approved by the National Board in 2016 is improper.

Bar Association not an “employer” under ADA

A claim against the Hispanic National Bar Association for violation of the Americans with Disabilities Act has been dismissed by the federal District Court in Washington, D.C. because the Association has less than 15 employees and is therefore not considered an employer under the Act.

Phone solicitor’s 90-month sentence affirmed

The Eleventh Circuit Court of Appeals has affirmed a sentence of 90 months in prison for a telephone solicitor convicted of conspiracy and mail fraud after a nine-day jury trial.  It has rejected the defendant’s claim that the government failed to present sufficient evidence to support his conviction, had introduced evidence materially different from the charges in the indictment, and had improperly considered his lack of remorse during sentencing.

Court Refuses to Expand Scope Of Attorney-Client Privilege

Washington Court says attorney for hospital may not have confidential talks with physician in ER practice

An appellate court in Washington has refused to follow several federal Circuit Courts of Appeals and refused to permit confidential ex parte communications between an attorney representing a defendant hospital and a physician employed by an outside contractor in the operation of the hospital’s emergency room when the hospital has been sued by a patient.  The state Court of Appeals, by a vote of 2-1, has refused to expand the scope of the privilege.

Calculating Public Support Percentage

Section 509(a) sets the rules for qualification as public charities; the rules are significantly different for 509(a)(1) and 509(a)(2)

Charities, especially newly created ones, are frequently confused about their classification under Sections 501(c)(3) and 509(a) of the Tax Code. It's not surprising. The rules are some of the most technical and confusing of all the tax rules affecting charities. This Ready Reference Page includes a chart showing the items of income included and excluded in the calculation of the public support fraction under sections 509(a)(1) and 509(a)(2) and does the calculation of the percentage under each section from a comprehensive example of sources of income.   

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