NONPROFIT
ENTERPRISES:
Corporations, Trusts, and
Associations
By
MARILYN E. PHELAN
Professor ofLaw
Texas Tech University School ofLaw
VOLUME 2
Cite as: Phelan Nonprofit Enterprises § -
...
• ~~:~~~~
Lawyers Cooperative Publishing. WESTLAW®. West Publishing
Customer Service: 1-800-328-4880
FAX: 1-800-340-9378
Pub 9/2000
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'ERSITY LUBBOCK, TEXAS 79409
LAW LIBRARY TEXAS TECH ijNl i/
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13
Table of Contents
Volume 2
Chapter 13 Fund Raising
§ 13:01
§ 13:02
§ 13:03
§ 13:04
§ 13:05
§ 13:06
§ 13:07
§ 13:08
§ 13:09
§ 13:10
§ 13:11
§ 13:12
§ 13:13
Procedures.
Charitable Contribution Deduction for Donors.
Deferred Giving.
Valuation.
Disclosure Requirements.
- Required Statement for Fundraising Solicitations.
- Telephone, Television, and Radio Solicitation.
- Membership Dues Solicitation.
Permits.
Pooled Income Fund.
Charitable Trust.
Family Foundation.
Charitable Foundation Operated as a Public Charity.
Chapter 14 Legal Problems of Nonprofit
Enterprises
§ 14:01
§ 14:02
§ 14:03
§ 14:04
§ 14:05
§ 14:06
§ 14:07
§ 14:08
§ 14:09
§ 14:10
§ 14:11
§ 14:12
§ 14:13
§ 14:14
§ 14:15
§ 14:16
Legal Action Involving Nonprofit Enterprises.
Right of Association.
- Discriminatory Practices of Private Associations.
- Judicial Intervention in Religious Associations.
- Standing of Association To Seek Judicial Relief.
- Standing To Challenge Actions of Nonprofit Enterprises.
Tort Liability of Nonprofit Enterprises.
- Charitable Immunity.
Application of Copyright Act to Nonprofit Enterprises.
- Originality Requirement for Works Including Digital
Images.
- Sources of Copyright Ownership.
- Copyright Protection.
- - Application of Copyright Laws to the Electronic Age
- - Computers as Copyrightable Works
- - Protection of Artist's Moral Right from Internet
Downloading
- Public Performances of Copyrighted Music by Nonprofit
Enterprises.
© West Group Pub. 9/2000 (NPE)
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NONPROFIT ENTERPRISES
§14:17
§ 14:18
§ 14:19
§ 14:20
§ 14:21
§ 14:22
§ 14:23
§ 14:24
§ 14:25
§ 14:26
§ 14:27
§ 14:28
§ 14:29
§ 14:30
§ 14:31
§ 14:32
§ 14:33
§ 14:34
§ 14:35
§ 14:36
§ 14:37
§ 14:38
- - Copyright Infringement Action
- - Liability of Bulletin Board Operators and Internet
Access Providers
- - Forum and Choice of Law for Infringement Claim
-Fair Use of Copyrighted Works.
- - Internet Downloading of Digital Images as Fair Use
- - Liability Outside Copyright Laws-Rights of Privacy
and PubUcity
- - Unfair Competition by Misappropriation
- - Licensing of Digital Images.
Securities Laws.
- Exemptions for Securities Issued by Nonprofit Enterprises.
Sale of Securities Donated to Nonprofit Organization.
- Compliance with State Securities Laws.
Application of Antitrust Laws to Nonprofit Enterprises.
Unfair Competition.
Labor Laws.
- Selection of Labor Representative.
- Duty To Bargain in Good Faith.
- Subject Matter of Bargaining.
- Unfair Labor Practices.
- Strikes.
- Right To Work Laws.
Checklist of Points To Remember.
Chapter 15
§ 15:01
§ 15:02
§ 15:03
§ 15:04
§ 15:05
§ 15:06
§ 15:07
§ 15:08
§ 15:09
§ 15:10
§ 15:11
§ 15:12
§ 15:13
§ 15:14
§ 15:15
§ 15:16
IV
Merger, Consolidation, and
Dissolution
Procedure for Merger or Consolidation.
Effect of Merger or Consolidation.
Articles of Merger or Consolidation.
- Form of Articles of Merger.
- Form of Articles of Consolidation.
- Form of Articles of Merger or Consolidation of Domestic
and Foreign Corporation.
Withdrawal of a Foreign Corporation.
Sale of Assets.
Voluntary Dissolution of aNonprofit Corporation.
Distribution of Assets.
- Cy Pres Doctrine.
- Articles of Dissolution.
- Form for Articles of Dissolution.
Involuntary Dissolution.
Procedures After Dissolution.
Bankruptcy.
TABLE OF CONTENTS
§ 15:17
Checklist ofPoints To Remember.
Chapter 16 Churches
§ 16:01
§ 16:02
§ 16:03
§ 16:04
§ 16:05
§ 16:06
§ 16:07
§ 16:08
§ 16:09
§ 16:10
§ 16:11
§ 16:12
§ 16:13
§ 16:14
§ 16:15
§ 16:16
§ 16:17
§ 16:18
§ 16:19
§ 16:20
§ 16:21
§ 16:22
§ 16:23
§ 16:24
§ 16:25
§ 16:26
§ 16:27
§ 16:28
§ 16:29
§ 16:30
§ 16:31
§ 16:32
What Is a Church?
State Intervention in Religious Organizations.
- Establishment Clause Versus Free Exercise.
- Property Disputes.
- Membership.
- Employment.
- Educational Programs.
- Solicitation.
- Zoning.
Association Status.
- Liability of Members.
- Property Ownership.
Incorporation of Religious Association.
-Alabama.
-Alaska.
- California.
- Delaware.
- Illinois.
- Kansas.
-New Jersey.
-New York.
- Pennsylvania.
- Texas.
- Utah.
- Virginia.
Taxation Issues.
- Tax-Exempt Status.
- Audit of Churches.
- Unrelated Business Taxable Income.
- Social Security Taxes for Employees.
- Tax Sheltered Retirement Plans for Employees.
Checklist of Points To Remember.
Chapter 17 Homeowner Associations and
Condominium Associations
§17:01
§ 17:02
§ 17:03
§ 17:04
§ 17:05
§ 17:06
Nature of Homeowner and Condominium Associations.
- Condominium Associations.
- Cooperative Associations.
- Planned Unit Developments.
- Uniform Common Interest Ownership Act.
Powers of Homeowners' Associations.
© West Group Pub. 9/2000 (NPE)
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NONPROFIT ENTERPRISES
§ 17:07
§ 17:08
§ 17:09
Rights and Liabilities of Members.
Taxation Issues.
Checklist of Points To Remember.
Chapter 18 Museums
§ 18:01
§ 18:02
§ 18:03
§ 18:04
§ 18:05
§ 18:06
§ 18:07
§ 18:08
§ 18.09
§ 18:10
§ 18:11
§ 18:12
§ 18:13
§ 18:14
§ 18:15
§ 18:16
§ 18:17
§ 18:18
§ 18:19
§ 18:20
§ 18:21
§ 18:22
§ 18:23
§ 18:24
§ 18:25
§ 18:26
§ 18:27
§ 18:28
§ 18:29
§ 18:30
§ 18:31
§ 18:32
§ 18:33
§ 18:34
§ 18:35
§ 18:36
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Organizational Structure of Museums.
Federal Funding for Museums.
Tax Considerations of Museums.
Laws Relating to Museum Acquisitions.
-Application of State's Commercial Code.
- Statutes Relating to Acquisition of Artifacts.
- - Archaeological Resources Protection Act.
- - American Indian Religious Freedom Act.
- - Native American Graves Protection and Repatriation
Act.
- - Pre-Columbian Art Act.
- - Convention on Cultural Property Implementation Act.
-Gifts.
- - Form for Gift of Personalty.
- - Cy Pres Doctrine.
- - Charitable Contribution Deduction for Gifts.
- - Valuation of Gift Property.
-Loans.
- - Form for Bailment Contract.
- - International Loans of Artistic Treasures.
Deaccessioning.
Historical Preservation Laws.
- State Preservation Laws.
- Tax Incentives for Historic Preservation.
Systematic Collections.
-Lacey Act.
- Endangered Species Act.
- Marine Mammal Protection Act.
- Other Acts Relating to Protection of Wildlife.
Rights of Artists in Their Works.
- Moral Right.
- Property Rights.
- Freedom of Expression.
Use of Volunteers.
Use of Guards.
Duties of Museum Directors and Employees.
Checklist of Points To Remember.
TABLE OF CONTENTS
Chapter 19 Schools
§ 19:01
§ 19:02
§ 19:03
§ 19:04
§ 19:05
§ 19:06
§ 19:07
§ 19:08
§ 19:09
§ 19:10
§ 19:11
§ 19:12
§ 19:13
§ 19:14
§ 19:15
§ 19:16
§ 19:17
§ 19:18
§ 19:19
§ 19:20
§ 19:21
§ 19:22
§ 19:23
§ 19:24
§ 19:25
§ 19:26
§ 19:27
§ 19:28
§ 19:29
§ 19:30
§ 19:31
§ 19:32
Requirement of Public Education.
State Board of Education.
School Districts.
Meetings of School Boards.
Role of Private Schools.
Tax Audits of Private Schools.
Liability of Schools and School Administrators.
- Governmental Immunity.
- Eleventh Amendment Immunity.
- Liability of Private Schools Under Federal Civil Rights
Acts.
- Educational Malpractice or Student Consumerism.
- Admission Policies.
- Ability Grouping and Special Educational Programs.
- Disciplinary Actions.
Student Related Searches and Seizures.
- Academic Dismissal of Students.
- Student Privacy.
- Student Expression.
- Curriculum.
- Teacher Certification.
Contractual Relations With Teachers.
- Property Interest in Employment.
- Liberty Interest.
- First Amendment and Academic Freedom.
- Procedural Due Process.
- Financial Exigency.
- Mfirmative Action Requirements.
- Tort Liability.
Religion and Schools.
Race Relationships and Schools.
Federal Tax Reporting Requirements of Schools.
Checklist of Points To Remember.
Chapter 20 Political Organizations
§ 20:01
§ 20:02
§ 20:03
§ 20:04
§ 20:05
Political Organizations--In General.
Registration of Political Organizations.
Regulation of Contributions and Expenditures of Political
Committees.
Reports by Political Committees.
Political Contributions by Corporations and Labor
Organizations.
© West Group Pub. 9/2000 (NPE)
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NONPROFIT ENTERPRISES
§ 20:06
§ 20:07
§ 20:08
§ 20:09
§ 20:10
§ 20:11
§ 20:12
§ 20:13
§ 20:14
§ 20:15
§ 20:16
Independent Political Expenditures by Unincorporated
Associations.
Taxation of Political Parties and Committees.
- Exempt Function of a Political Organization.
- Organizational and Operational Test.
Newsletter Fund.
Taxable Income of a Political Organization.
Political Expenditures of Section 501(c) Organizations.
- Directly Related Exempt Function Expenditures.
- Indirect Political Expenditures.
- Filing Requirements of a Section 501(c) Organization
Expending Funds To Support or Defeat Candidates for Public
Office.
Checklist of Points To Remember.
Chapter 21
§ 21:01
§ 21:02
§ 21:03
§ 21:04
§ 21:05
§ 21:06
§ 21:07
§ 21:08
§ 21:09
§ 21:10
§ 21:11
§ 21:12
§ 21:13
§ 21:14
§ 21:15
§ 21:16
§ 21:17
§ 21:18
§ 21:19
§ 21:20
§ 21:21
§ 21:22
§ 21:23
§ 21:24
§ 21:25
§ 21:26
§ 21:27
§ 21:28
Vlll
Hospitals
Organizational Structure.
Governmental Regulation of Hospitals.
-Licensure.
Accreditation.
-Medicare Act.
- Medicaid.
- Fraud Provisions under Medicare and Medicaid Programs.
- Controlled Substances Act.
- National Health Planning.
-Alcohol and Drug Abuse Treatment.
-Treatment of Mentally Ill.
Application of Antitrust Laws to Nonprofit Hospitals.
Nonprofit Hospitals.
Unrelated Business Taxable Income of Nonprofit Hospitals.
Reorganizations of Nonprofit Hospitals.
- Conversion to For-Profit Status.
- Exemption from Property Taxes.
Health Care Provider Systems.
Medical Staff.
-Admission to and Membership on Medical Staff.
Liability of Professional Review Committees.
Tort Liability of Hospitals.
- Blood Transfusions.
- Consents for Treatment.
- Informed Consent.
Incompetents.
Minors.
Patients' Rights.
TABLE OF CONTENTS
§ 21:29
§ 21:30
§ 21:31
§ 21:32
§ 21:33
§ 21:34
§ 21:35
§ 21:36
§ 21:37
§ 21:38
§ 21:39
§ 21:40
§ 21:41
§ 21:42
§ 21:43
- Duty To Treat.
- Emergencies.
- Refusal of Treatment and Right To Die.
- Abortions.
- Sterilization.
- Right To Procreate.
- Artificial Insemination and Surrogate Parenting.
- Wrongful Pregnancy, Wrongful Birth, and Wrongful Life.
Discharge of Patients.
Death and Dead Bodies.
Medical Records.
Reporting Requirements.
- Child Abuse.
Reportable Diseases.
Checklist of Points To Remember.
Chapter 22
§ 22:01
§ 22:02
§ 22:03
§ 22:04
§ 22:05
§ 22:06
§ 22:07
§ 22:08
§ 22:09
§ 22:10
§ 22:11
§ 22:12
§ 22: 13
§ 22:14
§ 22: 15
§ 22:16
§ 22:17
§ 22:18
Nature of Cooperatives.
Formation of a Cooperative.
Members of Cooperatives.
- Membership Agreements.
- Members' Ownership Rights.
- Stock Ownership.
- Patronage Dividends.
Directors.
Officers.
Application of Securities Laws.
Antitrust Provisions.
Taxation of Cooperatives.
- Taxable Income of a Cooperative.
- Tax-Exempt Farmers' Cooperatives.
- Taxable Income of Patron.
Merger or Consolidation of Two or More Cooperatives.
Dissolution.
Checklist of Points To Remember.
Chapter 23
§ 23:01
§ 23:02
§ 23:03
§ 23:04
§ 23:05
§ 23:06
Cooperatives
Social Clubs, Fraternities, and
Sororities
Nature of Social Clubs.
Right of Association.
Expulsion of Members.
Taxation of Social Clubs.
Tax-Exempt Social Clubs.
- Business Use of a Club.
© West Group Pub. 9/2000 (NPE)
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NONPROFIT ENTERPRISES
§ 23:07
§ 23:08
§ 23:09
§ 23:10
§ 23:11
§ 23:12
§ 23:13
§ 23:14
§ 23:15
- Transactions With the Public.
- Transactions With Members.
- Member-Guest Relationships.
- Discriminatory Practices.
Fraternities and Sororities.
- Use of Alcoholic Beverages.
-Hazing.
- Tax Deduction for Contributions.
Checklist of Points To Remember.
Chapter 24 Family Foundations
§ 24:01
§ 24:02
§ 24:03
§ 24:04
§ 24:05
§ 24:06
§ 24:07
§ 24:08
§ 24:09
§ 24:10
§ 24:11
Nature and Form of a Family Foundation.
Charitable Trust.
- Declaration of Trust.
- Testamentary Trust.
Nonprofit Corporation.
- Articles ofIncorporation.
Private Foundation.
Public Charity.
Gifts of Partial Interests to Charity.
Community Foundations.
Checklist of Points To Remember.
Chapter 25 Labor Organizations
§ 25:01
§ 25:02
§ 25:03
§ 25:04
§ 25:05
§ 25:06
§ 25:07
§ 25:08
§ 25:09
§ 25:10
§ 25:11
§ 25:12
Definition of Labor Organization.
Reporting Requirements for Labor Organization.
Officers.
- Standard of Conduct.
-Removal.
Reports of Officers and Employees.
Members.
Tort Liability for Labor Activity.
Trusteeships.
Political Activities of Labor Organizations.
Tax-Exempt Status.
Checklist of Points To Remember.
Chapter 26 Trade and Professional
Organizations
§ 26:01
§ 26:02
§ 26:03
x
Trade Association Status.
Requirements for Tax-Exempt Status.
Agricultural and Horticultural Associations.
TABLE OF CONTENTS
§ 26:04
§ 26:05
§ 26:06
§ 26:07
§ 26:08
§ 26:09
§ 26:10
§ 26:11
Business Leagues and Boards of Trade.
Business Activities.
Trade Shows.
Political Activities.
Antitrust Regulation.
Unfair Competition.
Membership in Trade Association.
Checklist of Points To Remember.
Chapter 27 Cemetery Associations
§ 27:01
§ 27 :02
§ 27:03
§ 27:04
§ 27:05
§ 27:06
§ 27:07
§ 27:08
§ 27:09
§ 27:10
§ 27:11
Organizational Structure.
- Dedication of Property.
- Location.
Power and Duties of Cemetery Association.
Tax-Exempt Status.
Tax Deductions for Contributions.
Perpetual Care Fund.
Use of Grounds and Income.
Sale of Lots.
Rights of Members.
Checklist of Points To Remember.
© West Group Pub. 9/2000 (NPE)
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