AG’s Request for Charity Donor Lists Likely Violates First Amendment

Federal court enjoins enforcement of investigation demand while constitutional issues are decided in state court

A federal District Court in Virginia has issued a temporary injunction enjoining the enforcement of constitutionally questionable questions asked by the state Attorney General in an investigation for violation of the state’s charitable solicitation registration law.  It has found that the charity is likely to prevail on its claim that demanding donor lists in a Civil Investigative Demand (”CID”) likely violates the right of free association guaranteed by the First and Fourteenth Amendments.

RI Court enjoins anti-DEI conditions in domestic violence grants

The federal District Court in Rhode Island (Melissa R. DuBose) has temporarily enjoined the Trump Administration from enforcing new anti-diversity, equity and inclusion provisions in grants to help support survivors of domestic violence and sexual assault and individuals without stable housing.

Donors, beneficiary lack standing to challenge Red Cross

A putative class action of donors to the American Red Cross and a claim by an alleged beneficiary of a contract with USAID have been dismissed by a federal District Court in Florida.  The Court has found that neither the donors nor the beneficiary have standing to challenge the actions of the Red Cross in providing relief in Haiti after a devastating earthquake in 2010.

Homeowners Association denied exemption under 501(c)(4)

In a case that started nearly six years ago, the Tax Court has denied 501(c)(4) social welfare exemption to a Texas homeowners’ association on the ground that it provides services primarily to its members and not to the general public.

RI Court orders funding of SNAP benefits

The federal District Court in Rhode Island (Chief Judge John J. McConnell, Jr.) has issued a temporary restraining order to force the Trump Administration to make funds available for the Supplemental Nutrition Assistance Program (”SNAP”) despite the governmental shutdown.

Tax Court calculates excess benefit tax on state senator

The Tax Court has finalized the excess benefits taxes and penalties due from a former Pennsylvania state senator who was previously convicted criminally on 137 counts of fraud, obstruction of justice and willfully aiding or assisting in filing false tax returns.   The excess benefit taxes were due on benefits he had improperly obtained from a charity for which he was considered a “disqualified person.”  (See Nonprofit Issues®, Vol. XXXI, No. 3).