February 16-28, 2010

February 16, 2010 - February 28, 2010

Lead Stories

May Charity Fire Exec After Political Endorsement?

Court says volunteer directors, including one paid as consultant, are not personally liable

Director’s Challenge to Decision Is Grounds for Removal by Members

Court says demand letter causing association to incur legal fees is sufficient “cause” for removal

May Auditors Be Liable for Statements When Charity Officers Misrepresent Data?

PA Court narrows in pari delicto defense where auditors conspired with officers to produce false statements

Nonprofit Law YOU Want to Know

Issue Notes

To the Point

How can I provide start-up funds for nonprofit?

I am thinking of starting a new 501(c)(6) trade association and providing all of the initial funding, but I would like to get it back when the association is able to pay it. Someone told me that any payment to me would be considered a preferential payment and could jeopardize the organization’s exempt status. Is that true?

Lessons from Litigation

Language of resignation letter may determine effectiveness

School not liable for drinking accident after private party

Tax Matters

“Cool, non-churchy” skate park not exempt

Court again refuses to rescind abusive tax shelter transaction

Employment Law

Sleep apnea not a disability for ADA

University may be liable under “cat’s paw theory”

May Webinar

Getting Beyond a
Semi-Functional Board
Wednesday, May 14, 2025
1:30-3:00 PM ET

Do you have a rockstar board?

Or does it limp along listlessly performing the minimum necessary to keep the organization going? Pushed by the CEO because no one on the board wants to be responsible for leadership.

Most boards are somewhere in between. Functional perhaps, but not fully functional. More like what you would call semi-functional.

This webinar will help you get beyond a semi-functional board. By acting intentionally at every step of the governance process, you can improve your organization’s capacity, resilience and effectiveness.

Learn more and register

Nonprofit bylaw review

Don Kramer will review and comment on your own current or proposed bylaws

Do your Bylaws reflect the way you actually operate? Do they protect the interests of those who should be protected? Do they spell out clearly how to deal with governance issues? Or do they create uncertainty for those who have to implement them?

Most nonprofits don't spend a lot of time looking at their Bylaws until there is a question or a dispute. That's when you need bylaws that are clear and unambiguous, so your questions on how to proceed are already answered. That's when bad bylaws can lead to unnecessary controversies or even costly litigation. Nonprofit Issues editor Don Kramer will review your current or proposed Bylaws to see if they work for you.

Learn more

New Subscribers can have full access to the entire website and all editions for 3 months for only $17.95.

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Thanks again for your excellent and helpful website - it's a wonderful resource for the non-profit community! --Stephanie H.

Thank you for your informative and keen advice on nonprofit matters. I believe it's a unique and concise place to get answers to this often wispy area called nonprofit. --Richard T.

SAY THAT AGAIN?

April 21, 2025

Those old enough to remember what it meant to say a story appeared “above the fold” on the front page of a newspaper may appreciate this story. People used to want to place stories above the fold because readers would at least glance at the story in the top half of the page that was visible when they picked up the paper before they looked at stuff that was below the fold and not immediately visible.

The printed version of the Philadelphia Inquirer had a four column picture and article about Pope Francis on the day after Easter that was written and printed before the Pope had died but seen by morning readers after his death had been widely reported. The fold divided the two-line headline so only the top line was visible. The top line said: “Pope meets Vance, then”

We can only imagine what readers were thinking before they flipped the page to read: “decries ‘the logic of fear’”

See our "Say That Again" collection

Special Report Available

Increasing Gender Diversity on the Boards of Nonprofit Eds and Meds: Why and How to Do It

This report provides a rare inside view on barriers women face to selection and success that are particular to nonprofit organizations and makes specific recommendations on how to improve the gender ratio.
Download the full report free

YOUR ONE-STOP PLACE FOR NONPROFIT LAW YOU NEED TO KNOW

February 16-28, 2010