2002 Nonprofit Alert Archive

December 2002

How Much is Too Much?  Supreme Court Weighs State Telemarketing Regulations ■ Mileage Rates Change for 2003 ■ IRS  Nails  Nonprofit  Exec,  a.k.a. Car  Salesman;Exec & Charity Face Serious Penalties ■ Bad Throw Makes Good Case for Assuming Risk ■ Employer Not Liable for Harassment by Clients ■ Trimming the Tree . . . and the Gift Annuity Rates ■ Property Development Won’t Affect Charity Status ■ Year End To-Do List: Record Retention Policy ■ Figures Confirm 2001 Donations Slacked Way Off ■ IRS Handbook Offers Insight on Nonprofit Issues

November 2002

HHS Awards $30 Million Grants to Faith- and Community-Based Groups ■ Avoiding Scandal: Measuring Accountability in Nonprofits ■ Indemnification Clause Makes Nonprofit Liable for School Board’s Negligence in Molestation Case ■ Cosmic Disharmony Leads to Early Church Settlement ■ The Missing Link:  2nd Circuit Delineates Employer Liability for Supervisor’s Harassment ■ Census Bureau Surveys Americans on Volunteerism ■ Church’s Property Sale Avoids UBIT. . . For No■ Foundation May Pay Premiums on Donor’s Insurance ■ Grant Money Finds Suitable Home After Merger

October 2002

8th Circuit Appeals Court: Study Shows Support for Church-Run Social Services ■ White House Seminars on Fed Aid

September 2002

Grand Jury, Sen. Grassley Investigate United Way (D.C.)■ Webcaster Relief Revisited■ Warren Housing Allowance Case Update■ SEC Nonprofit Disclosure Language Stripped■ Religious Hospital May Forbid Religious Speech■ EEOC Tracks 9/11 Backlash Discrimination■ Post 9/11 Issues for Charities

August 2002

Court Approves Hospital’s For-Profit Venture■ Enron  Fallout  Brings  Disclosure Implications  for  Nonprofits■ New IRS Guidance for Churches & Religious Organizations■ Who’s Reading What?  Board Minutes Sent to Mayor Become Public Records, Open to Inspection ■ Disabled Volunteers Offer Significant Service■ Hear No Evil: Intercepting Employee Personal Calls■ Widely Used Passenger Van Poses High Risk■ Sold to the Highest Bidder: Tax Tips for Auctions■ Work Activity Center Furthers Charity’s Purpose■

July 2002

Nonprofit's Directors Pay $5M. in Penalties ■ Shelters Spared Liability for Resident’s Misconduct ■ Statutory Immunity Protects Nonprofit CEO Acting in Good Faith ■ Hostile Workplace Charges Aren’t Time Sensitive ■ State Court Affirms Rights of Religious Employers ■ At-Will Employee Wins on Retaliatory Discharge ■ Supreme Court Strikes Down Local Solicitation Ordinance ■ Good Food, Good Fit: Restaurant Compliments Nonprofit Maritime Village’s Mission ■ Foundation’s Rural Grants Aren’t Taxable, IRS Says

June 2002

What Not To Do: United Way Audit Offers Example ■ Director’s Service Depends on Incorporation Terms The "Ayes" Don’t Have It, If The Documents Say "No"■ Re-hire Retaliation: FMLA Represses Refusals ■ Supervisor’s Racist Remarks Indicate Discrimination ■ IRS Finalizes Rules on Sponsorship Payments ■ Court Nixes Tax Break for Religious Groups ■ Merger Won’t Affect Charity’s Pooled Income Funds

May 2002

Warren v. Commissioner Parsonage Exclusion Sparks Constitutional Q’s ■ Association Assessed UBIT on Ad Income ■ Average Taxpayer Takes About $2,000 in Deductions ■Charity Says “No Thanks” to Court’s Volunteer ■ First Amendment Free Exercise Clause Offers No Protection in Clergy Sex Abuse Cases, Court Says ■B*I*N*G*O Bashing Executive Spells ‘Sue Me’ ■ Employer Not Liable for Hiring Habitual Offender ■ Habitat for Calamity: Federal Law Covers Volunteer ■ “Urning” Donations: “Dual Character” Payments ■ City Ordinance Can’t Regulate Charity’s “Integrity” ■ Ministry Equals “Alter Ego;” Assets Split in Divorce

April 2002

Supreme Court Ruling:FMLA Leave Policy Trumps DOL Regs ■ Intermediate Sanctions Go Final ■ Nonprofit’s Execs Caught in Alleged Ponzi Scam ■ Errors & Omissions Clause Prevents Insurance Recovery for Nonprofit’s Accounting Oversight ■ Employer Liable for Supervisor’s Sexual Harassment ■ Short & Sweet: Court Says Claims Need Only Show Discrimination and Relief ■ Frequent Flyer Miles Aren’t Employee Income ■ USA Act Gives Nonprofits New Service Initiative ■ Appeals Court Sets New “Religious” Test for NLRB ■ IRS Approves Email Acknowledgments to Donors ■ Amounts Advanced to Subsidiary Won’t Be UBIT

March 2002

Congress Resurrects Charity Tax Bill ■ Spam Email Is Trespass; No Free Speech Concern ■ Suspect Transaction Falls Short of Self-Dealing ■ Copyright Filings Experience Mail Delays ■ Loose Lips Sink Ships . . . And Employee Lawsuits ■ Employee Manual Isn’t Contractual During RIF ■ Nonprofit ISP Regains Exemption with Subsidiary ■ HUD Suspends Faith-Based Housing Program for Violations of Partnership Agreement ■ School Avoids UBI Taxes on Golf Course Income ■ Charitable Solicitation: What to Know Before Raising Funds

February 2002

Supreme Court Tightens ADA Standard ■ Telemarketers Produce Disappointing Returns ■ Mother May I? Not If Conflict of Interest Appears ■ Connection Must Be Shown for Retaliation Claim ■ Church Insurance Doesn't Cover Odd Bus Injury ■ EEOC May Sue, Despite Employee Arbitration ■ Cell Phone Distraction Prompts $16 M. Settlement ■ Educational Assistance Now Permanent Exclusion ■ State Funding to Religious Group Ruled Unconstitutional ■ Terrorism's Impact on Donor Advised Funds ■ Pet Cemetery Survives Scrutiny as Subsidiary

January 2002

IRS Focus for 2002:Religious & Social Service Groups ■ Note on Form 990 Creates Confusion ■ Art Does It's Part for Nonprofit Support ■ Creditors Can't Reach Parent Nonprofit's Assets ■ Circular Reasoning? Company Shares, Then Sues ■ Point of No Return: FMLA Demands Performance ■ Arbitration Enforced Despite Employee Reluctance ■ Perils of Joyriding: IRS Cautions Car Donation Programs ■ Donations of Employee Leave Stimulate Q's & A's ■ Aggressive Solicitation Law Partially Overturned