Directors’ self-dealing benefit not discharged in bankruptcy

The president and a director of the Network of Neighbors, a 501(c)(3) organization on Martha’s Vineyard in Massachusetts, asked their new friends Scott and Danielle Pendergraft to join the board.  Not long thereafter, Scott became treasurer and Danielle, who had a background in event planning and public relations, became involved in event planning for the nonprofit.

For-Profit Hospital Cannot Receive Funds From Charitable Trust

Sale of nonprofit hospital disqualifies gift and court must exercise cy pres doctrine

When Kathryn Seymour executed her Amended Trust Agreement, she provided that upon her death the residue of her estate would go 50% to St. John’s United Church of Christ in Massillon, OH, 40% to the Massillon community hospital, and 10% to the local branch of the Salvation Army.  Before her death, however, the hospital was sold to a for-profit and became known as the Affinity Medical Center.  The bank trustee asked the trial court for a declaratory judgment on the question of the rightful recipient of the 40% interest.

Criminal Sentence Based On Estimates of Loss, Not Plea

Museum membership seller pocketed cash from sale of memberships, drinks at fundraisers

The Seventh Circuit Court of Appeals has affirmed a three-year prison sentence for a data-records supervisor at the Chicago Field Museum of Natural History, who pled guilty to stealing $33,000 as part of what the Museum claimed was a $900,000 binge over six years.  The Court affirmed the sentence based on guidelines for theft between $550,000 and $1.5 million.

“Personal tax shelter” fails in Tax Court

A retired grandmother who is “fond of shopping” developed what she described at trial as her “personal tax shelter.”  She bought clothing that had been heavily marked down for sale at Talbots and immediately gave it to Goodwill Industries so that she could claim a charitable contribution deduction on the original list price. 

Isn’t bequest of cat and $6000 enough?

When Alan R. Dawe died in New York state in 2014, he left the residue of his estate, about $700,000, to the trustees of his “Dawe Family Trust” to expand his website devoted to Dawe family genealogy and to create an archive of family genealogical data, photos and heirlooms. 

Improper Selection of Directors Voids Payments for Pastor’s Wife

Bylaws of church were inconsistent with official doctrine and contract could not be validly approved

The bylaws of the Refuge Temple Church of God in Christ, a South Carolina nonprofit corporation founded by Pastor Elder Edward Jenkins in 1997, provide that the pastor can fill vacancies on the board with the advice and consent of the other directors.