The Ninth Circuit Court of Appeals has affirmed the imposition of an $8,465,000 penalty for the promoter of a “bogus tax scheme” involving the donation of timeshare properties for charity. ( See Nonprofit Issues® Vol. XXXII, No. 1 .) In doing so, the Court affirmed a trial court determination on the scope of the “activity” by which the scheme should be measured for imposition of the penalties. James Tarpey, a lawyer and businessman in Montana, formed Project Philanthropy, doing business as Donate for a Cause, around 2006 and obtained 501(c)(3) charitable exemption. He promised donors generous tax savings for their donations on unwanted timeshares. He also formed a for-profit timeshare...