Outflanking Foundations’ Public Charity Defense

Private foundations may make grants to groups which are not public charities if they exercise "expenditure responsibility" in approving, monitoring grants

Although most private foundations are uncomfortable making expenditure responsibility grants, they clearly have the power to do so and in the right circumstances may be convinced that it is appropriate.

Even if they do not make the grant directly, it may be possible to convince them to use a conduit through a public charity like a community foundation.

It is an important power that ought not be overlooked.  This Ready Reference Page spells out the procedures for private foundations (and donor advised funds) to make grants to oganizations that are not public charities.

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Employees may collect overtime for sleeping on the job

Employees required to sleep overnight in their employer’s group homes for persons with disabilities are entitled to overtime pay under the Fair Labor Standards Act, the First Circuit Court of Appeals has affirmed. The employer’s system of seven days on and seven days off, with the employees being required to be on the premises for 24 hours each day, requires the overtime pay, it has held.

PA court upholds validity of event release

An appellate court in Pennsylvania has reversed a trial court decision that a pre-event release of liability signed by a rider in a charity bike ride was void against public policy.  The Commonwealth Court has held that such exculpatory releases are valid and enforceable.

Organization lacks standing on discrimination claim

A nonprofit lacks standing to sue the American Studies Association for damages for discrimination, an appellate court in New York has affirmed, when it has failed to sufficiently claim an “injury in fact” to itself or any of its individual members.  The Court has affirmed a trial court decision to dismiss the claim.

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