Tax Court grants business deduction for charity parties
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.
Who decides if nonprofit PILOTS are valid?
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.
University Exempt From Paying Stormwater Runoff Charge
PA Court says levy is a local tax, not a service fee applicable only to users
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.
RI Court expands injunction on anti-violence funds
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.)
IL Court enjoins anti-DEI conditions in Justice grants
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.
Directors Have No Fiduciary Duty To Other Directors of Nonprofit
Penn State wins dismissal of most claims by ousted trustee, but Court wants more argument on First Amendment retaliation charge
A federal District Court has dismissed most counts of a suit brought by ousted Penn State University Trustee Barry J. Fenchak against the University in their long-running dispute over Fenchak’s rights and duties as a member of the Board of Trustees. The Court has dismissed claims of defamation, breach of fiduciary duty, and violation of the Pennsylvania Constitution. It has refused to dismiss at this point, however, a claim for violation of the First Amendment of the U.S. Constitution.