June 1-30, 2014

June 1, 2014 - June 30, 2014

Lead Stories

Foundation, President Not Liable For Defamation of Grantee’s Former Exec

Court finds no evidence that president said anything untrue about former executive of agency being audited on grant

Unincorporated Associations Cannot Sue or Be Sued

Nearly ten years after start of litigation, Kentucky Supreme Court throws out case

Great-Great-Grandson Denied Right To Reopen Estate to Protect Painting

Attorney General has authority to litigate disposition of art given to William H. Seward

Ready Reference Page

Form 990 Reporting for Special Events Can Be Tricky – And Is Often Wrong

Many returns fail to separate contributions and other amounts because nonprofits fail to keep adequate records

Your Legal Questions Answered

Are sale-leaseback arrangements legal/ethical for nonprofits?

I am on the Board of a 501(c)(3) private school that has nine buildings on its campus. Many are in need of modernization and the finances of the school do not allow that at the moment. The Chair wishes to 'sell' the main administration building to a contractor/consultant for $1 and then let the contractor get the financing to upgrade the building. The contractor will then 'lease' the building back to the school until the cost is paid. I do not think it would be legal or ethical and would harm the nonprofit status of the school as donors would donate to a capital campaign to improve the building in question but the building would not be owned by the school. Would donors still be able to take a tax deduction? What are your thoughts on this scheme?

Lessons from Litigation

Garden Club not liable for falling tree

ASPCA not a “victim” of animal abuse and can’t collect for work

Tax Matters

Forest Held by Conservation Group Is Exempt

Deduction denied for “quid pro quo” easement

ABA Retirement Funds not exempt

Employment

Can nonprofit compete with for-profit?

April Webinar

IRS Form 990: Public Relations Opportunity or Trap for the Unwary?

Wednesday, April 9, 2025
1:30-3:00 PM ET

Because Form 990 tax information returns are instantly available to anyone anywhere at any time on the Internet, they can be a nonprofit organization's most important public relations document.

They can also be traps for the unwary that lead to confusion, serious adverse publicity, media inquiries, and governmental sanctions.

This session will explore the full (long form) Form 990 from the perspectives of the organization, a potential donor or employee, and a regulator. It will discuss the most common errors and best practices for using the Form as a tool to further the organization's mission.

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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SAY THAT AGAIN?

October 29, 2024

Marketers love to make their prospects feel special. But they sometimes don’t seem to want you to think about what they say to do it.

I received two items recently that made me wonder what they were thinking.

I got a package of discount coupons in the mail that touted a “specially curated” set of offers. I thought they might have my personal interests at heart until I saw it was addressed to “Resident.”

I also got a text message saying that “Kellyanne Conway wants YOU and only YOU to know what the latest polling shows” about the Presidential election. I could click the link to read the “exclusive” memo.

And I will be the only one to know? Really? Do they really think the recipients are that stupid?

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

June 1-30, 2014