Attorney for Dissident Director Not Liable to Nonprofit for Malpractice

Director had no authority to hire on behalf of corporation, therefore there was no attorney-client relationship

An attorney hired by a dissident director of a nonprofit corporation in an attempt to regain control of the organization may not be sued by the nonprofit for malpractice, the Supreme Court of Ohio has ruled. The director did not have authority to hire on behalf of the organization and there was therefore no attorney-client relationship. ( New Destiny Treatment Center v. Wheeler, No 2010-298, 5/18/11 .)

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Fiscal Sponsorship: For the Funders, Sponsors and the Sponsored
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Fiscal sponsorship is a time-honored method to spawn new charitable activity when the people with the vision and the energy to do the work do not have recognition of federal tax-exempt status.

It can function smoothly as an incubator of important new projects. Or it can function badly as a serious trap for the unwary.

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* Federal tax law cases, including one to invalidate the requirement for Schedule B on the annual Form 990 for charities and one to challenge the prohibition on electioneering and substantial lobbying, and the request to require demographic information on boards of large public charities on the Form 990.
* Challenges to higher education, including federal taxes, unionization, new Title IX regulations, name, image and likeness issues, and challenges to diversity, equity and inclusion programs.
* Status of the new annual report requirement for Pennsylvania nonprofit corporations.
* Updates on charitable solicitation registration issues.
* Standing issues.
* Special issues with charitable trusts, including one holding that many minor breaches of fiduciary duty can add up to a significant breach of duty.
* Other interesting cases, including one holding that donor lists are not trade secrets subject to protection from use by a former fundraiser.

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SAY THAT AGAIN?

October 29, 2024

Marketers love to make their prospects feel special. But they sometimes don’t seem to want you to think about what they say to do it.

I received two items recently that made me wonder what they were thinking.

I got a package of discount coupons in the mail that touted a “specially curated” set of offers. I thought they might have my personal interests at heart until I saw it was addressed to “Resident.”

I also got a text message saying that “Kellyanne Conway wants YOU and only YOU to know what the latest polling shows” about the Presidential election. I could click the link to read the “exclusive” memo.

And I will be the only one to know? Really? Do they really think the recipients are that stupid?

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Attorney for Dissident Director Not Liable to Nonprofit for Malpractice

Attorney for Dissident Director Not Liable to Nonprofit for Malpractice