September 16-30, 2011

September 16, 2011 - September 30, 2011

Lead Stories

Creditors May Sue Directors For Breach of Duty Before Bankruptcy

Court reverses trial court, allows case to proceed on claims of lack of good faith, fraud in deepening insolvency

Members of Sorority May Sue Directors for Breach of Duty

Court affirms dismissal of claim against foundation for lack of jurisdiction

Employee’s Stipulation for Dismissal Precludes Claim for Indemnification

Woman’s assault claim against nonprofit and employee was dismissed, along with all claims, “direct or indirect”

Nonprofit Law YOU Want to Know

We regularly feature answers to questions from readers in our “To the Point” column. The full list can be viewed on the site.

Issue Notes

To the Point

Must dissolving nonprofit transfer assets to another charity?

If a nonprofit corporation dissolves and transfers/donates its net remaining assets to another charity, do the board members of the dissolving nonprofit get a tax deduction for the transfer/donation?

Lessons from Litigation

Charities sued to recover payment for mineral leases

When may insurer apply “insured vs. insured” exclusion?

Tax Matters

Delayed gift to charity still deductible

Employment Law

Statements questioning medical leave are basis for suit

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

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

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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

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

September 16-30, 2011