Court refuses to pierce corporate veil of hospital and foundation

An appellate court in Texas has refused to pierce the corporate veil between a hospital and its fundraising foundation and has refused to require the hospital to disclose financial information to the public.

The Texas Business Organization Law provides that a nonprofit corporation must make its financial books and records available for public inspection, but provides an exception, among others, for a nonprofit that does not intend to solicit or actually receive contributions of more than $10,000 a year from a source other than its own membership.