Social Club May Eject Member Without Hearing or Opportunity to be Heard

North Carolina court says state Nonprofit Corporation Law requires only good faith process, not a hearing

The North Carolina Court of Appeals has affirmed a trial court decision upholding the termination of a golf club membership at a special meeting of the board on the basis of the member’s dispute with a golf shop employee and his “cumulative disciplinary history” of two other sanctions while a member of the Club.  The Court rejected the member’s argument that a hearing and an opportunity to be heard were required as a matter of law.

Does whistleblower policy protect whistleblower?

Columbia University published its Institutional Policy on Misconduct in Research in 2006.  It provides that “all reasonable and practical efforts” will be made to protect a complainant from retaliation if the person files a good faith complaint about fabrication or falsification in research.  In 2014, the University also adopted a “Non-Retaliation Policy” to prohibit retaliation against individuals who report possible ethical or compliance issues in good faith.  The policy was specifically intended “to encourage” members of the community to report their concerns.

Court approves cy pres of trust to conversion foundation

An appellate court in Pennsylvania has approved a trial court decision awarding income from a charitable trust to a conversion foundation created upon the sale of a local nonprofit hospital.  It denied the claim by another beneficiary that the income should be divided among three churches also benefiting from the trust.

NY Attorney General Sues Accountants For Fraud in Charitable Solicitation

State claims auditors willfully overlooked fraud and failures of internal controls at charity

The New York Attorney General’s office has filed a complaint against an accounting firm and its founder for fraudulently providing unqualified financial statements for a charity closed down by the state.  The complaint says that McEnerney, Brady & Co. and its founder Edmond Brady “facilitated a multi-year scheme of fraudulent not-for-profit conduct by falsifying [the charity’s] financial statements.”

Federal court abstains in solicitation suit

A federal District Court in Washington has abstained from a suit brought by a for-profit business that pays charities to help solicit used goods that the business resells for a profit.  The business complained that the state Attorney General had violated its free speech rights under the Constitution by dictating its contractual relationship with the charities and mandating disclosure of its contractual payment terms.

Boorish behavior not grounds for court to remove director

“Boorish and insulting behavior” toward other members of the board of directors of a nonprofit corporation does not constitute sufficient grounds for judicial removal of the director under the Pennsylvania Nonprofit Corporation Law, the state Commonwealth Court has held.  While calling the conduct “deplorable,” it said it does not constitute grounds for court intervention in the nonprofit’s governance.