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April 16-30, 2005

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April 16-30, 2005

April 16-30, 2005

Nonprofit Not Liable for Damages When Directors Exercised Due Care
Terminated manager has no claim against merged company when board volunteers met fiduciary standard and are immune

For Misrepresentation by Grantee
Recipient allegedly said it would raise a significant endowment, but failed to do so

Synagogue Ordered to Hold Special Meeting To Elect New Board of Directors
Courts say it must follow bylaws and state law when dispute arises over leadership

Ready Reference Page
Finance Committee Holds Another Hearing On Charity Governance, Ways to Cut Tax Gap

Sen. Grassley looks at contribution deductions as means to slice away at difference between taxes due and taxes paid

Issues Notes
Kramer to talk on pressures facing charity directors
Kramer to participate in PBI Nonprofit Institute
Thursday with the Editor, April 28

To the Point

By law what does a charity have to do if it receives a donated car and wants to sell it?

Lessons from Litigation

  • Agency may sue for “nonfulfillment” damages
  • Court abused discretion in gifts to charities
  • Couple can enjoin nonprofit’s use of photo

Tax Matters

  • Donor denied deductions without substantiation
  • “Expert” can’t testify on meaning of charitable

Employment Law

  • Court affirms validity of non–compete clauses
  • but denies enforcement of “unreasonable” limit

Say That Again?

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