May 1-31, 2012

May 1, 2012 - May 31, 2012

Lead Stories

Nonprofit Can’t Collect from Bank For Unauthorized Withdrawals

Failure to review bank statements and complain prevents organization from recovering losses

Court Affirms Injunction Against Commercial Co-Venturer

Promoting show house with name of charity brings for-profit companies within registration act

Court Says Successor Organization Is Not “Successor” to Receive Trust

CRUT remainder went “unambiguously” to parent organization and trial court found continued affiliation necessary for successor

Risk and Reward

Background Checks, Screening and Your Nonprofit

Issue Notes

To the Point

Can we spend money for entertainment of members at event?

Our small 501(c)(3) nonprofit organization holds an annual free public event with the dual purpose of drawing in new members and raising funds for another charity. Attendance is usually spilt about 50/50 between club members and the general public. We raise funds through a silent auction and a raffle of donated items. We usually use $1000 of club funds for some advertising but mainly to pay for entertainment, and we raise 2-3 times that amount to donate to the other charity. A board member is telling us that we can no longer do this because it is a form of private inurement. He believes we are not allowed to spend any money if it has any direct benefit to our members. Is he right?

Lessons from Litigation

D & O policy doesn’t cover RICO claims

D & O policy doesn’t cover breach of employment agreement

Member can’t bring breach of duty claim to recover personally

Tax Matters

Charitable trust not “prevailing party” in tax litigation

Taxpayers denied $504,000 deduction on conservation easement

Employment Law

Union did not violate duty of fair representation

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.

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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

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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

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May 1-31, 2012