Articles Posted in Non-Profit Corporations

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Plaintiff, a Virginia non-profit corporation organized under section 527 of the Internal Revenue Code, commenced this action against the Commission and the Department of Justice, contending that it was "chilled" from posting information about then-Senator Obama because of the vagueness of a Commission regulation and a Commission policy relating to whether plaintiff had to make disclosures or was a "political committee." Plaintiff asserted that it was not subject to regulation but feared the Commission could take steps to regulate it because of the vagueness of 11 C.F.R. 100.22(b) and the policy of the Commission to determine whether an organization was a political action committee by applying the "major purpose" test on a case-by-case basis. Plaintiff alleged that the regulation and policy were unconstitutionally broad and vague, both facially and as applied to it, in violation of the First and Fifth Amendments. The court applied the "exacting scrutiny" standard applicable to disclosure provisions and affirmed the district court's finding that both the regulation and the policy were constitutional. View "The Real Truth About Abortion, Inc. v. Federal Election Commission" on Justia Law

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Ocean Pines Association, a non-stock corporation, oversees a subdivision of more than thirty-five hundred acres in Berlin, Maryland. The Association was exempt from federal income taxation as an organization "not organized for profit but operated exclusively for the promotion of social welfare" pursuant to 26 U.S.C. 501(c)(4)(A). The Tax Court subsequently determined that the net income from two parking lots and a beach club owned by a tax-exempt association constituted "unrelated business taxable income." The association appealed. Because the income derived from the parking lots and beach club was not "substantially related" to the association's tax-exempt purpose, the court affirmed. View "Ocean Pines Assoc. v. Commissioner of IRS" on Justia Law

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Following a state court judgment of over six million dollars entered against NHF in Texas, NHF filed a voluntary petition in the U.S. Bankruptcy Court, seeking to reorganize under Chapter 11 of the Bankruptcy Code. At issue was were the circumstances under which a bankruptcy court could approve nondebtor release, injunction, and exculpation provisions as part of a final plan of reorganization under Chapter 11. The court held that equitable relief provisions of the type approved in this case were permissible in certain circumstances. A bankruptcy court must, however, find facts sufficient to support its legal conclusion that a particular debtor's circumstances entitled it to such relief. Because the bankruptcy court in this case failed to make such findings, the district court erred in affirming the bankruptcy court's confirmation order. Accordingly, the court vacated the judgment of the district court and remanded for further proceedings. View "Behrmann, et al. v. Nat'l Heritage Foundation, et al." on Justia Law