What happens when a charity books its regular black-tie fundraising gala for specific ballroom facilities at a hotel and the hotel moves the event to less attractive space so that it can rent the ballroom to another organization for triple the rental paid by the original charity?

Employees of a nonprofit organization who were paid from a grant from the Federal Emergency Management Agency were not employees of FEMA and could not sue FEMA for violations of the Fair Labor Standards Act when not paid by the nonprofit, the First Circuit Court of Appeals has affirmed.

One of two sisters who owned a 50% interest each in a limited liability company taxed as a partnership was challenged by the IRS on a variety of deductions claimed for costs expended personally to help sustain the financially precarious business.  Among the deductions challenged were business expenses and charitable contributions claimed by the business, called “Stuff,” a boutique that had sold handmade and small-batch specialty goods since 1996.

Charities that own tax-exempt real estate will often agree with a local taxing authority to provide Payments in Lieu of Taxes (“PILOTS”) to avoid a costly challenge to their exemption or because they believe they ought to contribute at least partially for the services they get from local governments.  But when a dispute arises over the PILOT agreement, who decides the issues?

It certainly isn’t us, a federal District Court in New Jersey has recently ruled.

A divided Pennsylvania Supreme Court has held that a Stormwater Runoff Charge imposed by the Borough of West Chester against West Chester University is a local governmental tax from which the University is exempt and not a service fee applicable specifically to users of the service.

The federal District Court in Rhode Island (Melissa R. DuBose) has expanded its preliminary injunction against the government’s inclusion of likely illegal requirements on grants from the Office on Violence Against Women.  (See Nonprofit Issues^®, Vol. XXXV, No. 6.)

In another trial court decision enjoining the government’s efforts to eliminate funding for diversity, equity, and inclusion efforts by government grantees, the federal District Court in Chicago (Matthew F. Kennelly) has issued a preliminary injunction against the inclusion of anti-DEI conditions in Department of Justice grants.