Although the Uniform Prudent Management of Institutional Funds Act was originally promulgated by the Uniform Law Commission in 2006 and adopted by New York in 2010, there have not been a lot of definitive decisions interpreting the law.  A trial court in Madison County, NY, has recently interpreted the law in awarding endowed scholarship funds following the closing of Cazenovia College.  The Court has overridden the recommendations of Cazenovia in awarding scholarship funds to several institutions other than the one recommended by Cazenovia.

A nonprofit association has no duty to protect one of its members against a squabble with another member and the member has no claim against the association for breach of a contractual or fiduciary duty, a federal District Court in New York has ruled.  The Court has dismissed a series of claims a member brought against the United States Equestrian Federation for breach of its disciplinary rules, breach of contract, negligence, and breach of fiduciary duty.

The Tax Court has affirmed the Internal Revenue Service's imposition of maximum excess benefit taxes on the founder of a charitable corporation that made a no-interest loan to a limited liability company of which the founder was the sole member. It has imposed the 25% basic tax on the loan of $590,000, plus the 200% tax on failure to repay when the tax was imposed, making a total of $1,327,500 due.  It also imposed penalties of about $70,000 for failure to report the transaction and pay amounts due as required.

A bill to end a major tax break for “dark money” contributions to tax-exempt entities has been reintroduced in Congress. Rep. Judy Chu (D-CA) and Sen. Sheldon Whitehouse (D-RI) have reintroduced legislation to close a tax loophole that allows billionaires to avoid capital gains taxes by donating appreciated assets to dark money groups, which proponents say effectively subsidizes the flow of secret money into American elections.

A new report on the demographic characteristics of board leadership in the 40 largest nonprofit educational and medical organizations in the Philadelphia region shows modest gains in gender and racial diversity but a “troubling decline” in the number and percentage of organizations willing to share data on board demographics.

A sexual assault counselor has no protection under the Minnesota Whistleblower Act or common law and can be fired when she refused to disclose confidential victim information to her supervisors without the victim’s consent, the state Supreme Court has held.  The Court has affirmed decisions of the trial court and the state Court of Appeals.

The federal District Court in Rhode Island (Melissa R. DuBose) has issued a permanent injunction against Robert F. Kennedy, Jr.