A licensed practical nurse at a nonprofit residence for persons with disabilities has lost a claim for discrimination and retaliation after she was fired for failing to follow protocol when a resident was injured in an unwitnessed fall.  A federal District Court in Kansas has dismissed the claims when it held that the LPN did not show that the stated reason for the termination was only a pretext for discrimination.

A 63-year-old counselor and case manager for a nonprofit family service agency may proceed with a case of age discrimination in his termination, a federal District Court in Illinois has held, but not a claim for a hostile work environment.  It has rejected the defendant’s motion for summary judgment on the discrimination claim but granted it on the hostile work environment claim.

The IRS has announced that it will no longer require a 501(c) organization to file a new application for exemption in many cases if it changes its form of entity or its state of organization. The new rules apply to any organization exempt under 501(c), not just to charities under 501(c)(3). (Rev. Proc. 2018-15.) 

The Tax Court has imposed first and second tier excess benefit taxes on the CEO of The Association for Honest Attorneys, who used the organization’s money for personal purchases over a three-year period.  The total amount for the three-year period is more than $88,000.

A charitable organization cannot overturn an arbitration award to pay damages on the ground that payment would improperly redirect restricted charitable contributions for use contrary to the donors' intent, an appellate court in New York has ruled. 

In an unusually scant opinion, the Court does not fully describe the situation, but it appears that the charity was ordered to pay “expectation damages sufficient to restore” the plaintiff “to the position it would have been in” if the charity had performed as promised under an agreement. 

A Boy Scout Council in California has been denied interest on distributions from a charitable lead trust that were withheld during a dispute over its entitlement to the funds.  An appellate court in California has affirmed a trial court decision denying the payments.

Lowell Patton established the Patton Family Lead Trust in February, 2003.  It was intended to provide income to five beneficiary charities for 15 years, with the remainder to be distributed to three family members.  The Ventura County Council of the Boy Scouts was one of the income beneficiaries.

One politically conservative nonprofit organization can bar another from the annual Conservative Political Action Conference (“CPAC”) without violating antitrust laws, a federal District Court has ruled, even if the barred organization is unable to increase its prestige, goodwill, and obtain donations.  The federal District Court in Florida has held that the action is not a restraint on “trade or commerce” governed by the Sherman Act.