Court removes trustees of supporting organization
A federal District Court in Wisconsin has removed two trustees of a charitable trust formed as a “supporting organization” to the Minneapolis Jewish Federation after a long dispute between the two organizations. It has found that the trustees breached their fiduciary duty to the Federation and viewed the Trust merely as a vehicle for the family’s own charitable interests while receiving the tax benefits of a supporting organization. (See Ready Reference Page: “S
Parishioners of Merged Church Can’t Stop Sale of Property
Court says they failed to show that they had an ownership interest in the church building
An appellate court in Louisiana has affirmed dismissal of a suit by parishioners of a merged church seeking to enjoin the sale of a church building. It held that the parishioners failed to state a cause of action upon which relief could be granted.
Charity Bike Ride Uninsured When Participant Is Injured
Court says exclusions prevent coverage for rider’s claims of charity’s negligence in auto accident
A 501(c)(3) nonprofit running long-distance bicycle rides to raise money for affordable housing has found itself uninsured when sued for negligence by one of its participants who was seriously injured while on a cross-country ride. A federal District Court in Philadelphia has granted summary judgment to the organization’s commercial liability and excess coverage insurers who sought a declaration that they had no obligation to protect the charity from the rider’s claims.
Church dispute not a federal case
Congregants of a church near the Pennsylvania-Delaware state line sued in federal court claiming that the senior pastor stole funds from the church and that he and others breached their fiduciary duty to the congregation and interfered with various contracts. A federal court in Philadelphia has dismissed the case for lack of jurisdiction.