Firm Logo 2010August 2011
Nonprofit Newsletter 
Proudly Serving Our Clients Since 1992

Helping You Protect The Business You're Building
 
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Article Corner
Tax Update
Court Update
Client News
Events
Firm Update
Nonprofit Resources
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JeffFanger EHC

        Nonprofit Organizations have over the past few years faced harsh realities of compressed budgets, growing demand for services and lackluster philanthropic support.  Many nonprofits have found that their mission has been complicated by the ever increasing legal and fiscal requirements that they have to effectively navigate.  At Fanger & Associates, we have been representing nonprofit organizations since 1992 and understand the unique needs and challenges that face the nonprofit community.  

        We hope that this newsletter's timely, practical and concise information assists you in your mission and with your planning and services.  Whether you are a small nonprofit with no staff and a full volunteer board or a large multi-million dollar organization, the reality of today's environment is that you need information to better respond to the challenges you are facing.  We encourage your comments and input with respect to this newsletter, as we want to provide Ohio's nonprofit community with the information and guidance they need.     

        Please contact us with any questions or suggestions for topics you would like to have us cover in future issues, and be sure to click on the "confirm" link above to ensure you receive future issues.

                                                                         Jeffrey J. Fanger 

Article Corner        LegalnewsPic 

Informational Articles for Nonprofit Businesses     

 

 

"Ohio Nonprofits Fear Casinos Will Hurt Fundraising" 

       

         Several nonprofit organizations worry that the upcoming opening of four new casinos will drastically diminish their fundraising abilities.  Hundreds of nonprofit groups in Ohio depend on money collected through bingo and charity poker and they may be negatively affected by these new casinos.  One example is the Veterans of Foreign Wars charity that uses revenue from it's bingo events to pay for several expenses, including providing shelter for homeless army recruits and supporting veterans.  Many churches, charities, and other volunteer organizations finance most of their operations through bingo, charity poker, and other games.  Dianne DePasquale-Hagerty, director of Medina Creative Housing, states "Frankly, I don't know how all-volunteer organizations can compete with all the bells and whistles of a casino".  Many leaders of Ohio nonprofit groups without large fundraising departments will suffer the most.    

 

 Full Article from Wdtn 

Candice Bradley

Tax Update 

Recent Tax Changes and Helpful Information

 

 
"New Form 8940 for Miscellaneous Approval Requests"

          

          The IRS has released a new form that tax-exempt organizations will use to request determinations (other than initial exemption applications) about their tax-exempt status. In addition to foundation status issues, organizations will use Form 8940, Request for Miscellaneous Determination, to obtain advance approval of certain activities and exemption from Form 990 filing requirements.

          The form is only one page and very user-friendly.  It includes instructions that specify what information needs to be included to support each of the nine types of requests that may be submitted.  A user fee must be sent in as well for most requests.  This form will make the process much simpler for organizations because prior to the release of Form 8940, there was no form for requesting such approvals.  

          To learn more about form 8940 and for a list of requests that it may be used for, please click the following link: Form 8940 Information.  

Candice BradleyCourt Update
Recent Court Decisions of Interest to Nonprofit Organizations

5th District: Final Judgement Determined in Landlord v. Tenant Case    

Strip Delaware, L.L.C. v. Landry's Restaurant

(12/27/2010)

          On December 27, 2010, a long fight between landlord and tenant beginning in 2006 finally came to a resolution with the majority of the decision in favor of the landlord, but with a partial victory after appeals for the tenants.

          The relationship between landlord and tenant originated in 1997 when Landry's Seafood House-Ohio, Inc. entered into a lease agreement with The Strip Delaware, L.L.C., to operate a Joe's Crab Shack restaurant in it's strip mall in Jackson Township. Several years later, Landry's sold most of their Joe's Crab Shack restaurants resulting in the closing of their restaurant at "The Strip" on November 17, 2006. According to Strip Delaware, Landry's was in violation of the lease agreement, which required them to continuously operate their restaurant at the leased premises.   The landlord repossessed the premises and changed the locks, therefore leaving all of the tenant's business equipment trapped inside and inaccessible for their retrieval. Strip Delaware then decided to eradicate the lease with Landry's on December 29, 2006, further causing them to request that Landry's withdraw any occupation of the space.

          Landry's was displeased with this decision and filed a complaint against the landlord for declaratory judgment on February 1, 2007.   The trial court ruled in favor of the landlord finding that the tenant had violated the terms of the lease agreement, thus terminating the lease. The trial court ruled that The Strip Delaware was "entitled to self-help repossession of the leased premises."   The tenant tried to appeal this matter in April 2008, but encountered another loss in attempting to overthrow the past judgment.

          Since The Strip was not able to acquire any tenants willing to sign a lease during the year and a half in which litigation was transpiring, they filed a complaint for money damages. The trial court again decided in favor of the landlord stating that Landry's was liable as a holdover tenant from December 2006 through April 14, 2008, and consequently owed The Strip 150% of the rent rate provided in the lease in addition to taxes and charges. A 'holdover tenant' is a term included in most landlord-tenant leases which describes a tenant occupying a landlord's space after the lease has expired, therein providing terms in the lease for what percentage on top of rent that the tenant will be responsible for paying each month that they reside on the premises. Throughout the course of multiple judgment entries, Landry's was required to compensate The Strip with $300,000 in damages and $250,000 in legal fees.

          The final tier of action in this case occurred when Landry's continued to fight and was determined as a "partial prevailing party" when the Court of Appeals of Ohio determined that the trial court had erred in ruling that Landry's was in fact a holdover tenant.   It was declared by the court that according to the lease, Landry's was in no obligation to repay The Strip holdover tenant damages, as they should not be considered a holdover tenant.   This resulted in the court holding proceedings to re-determine damages and legal fees due from Landry's. The Court found that Landry's should only be held accountable for 50% of damages and legal fees. After a cross-appeal from The Strip, the Court of Appeals held this decision. 

Client News
Recent News About Our Clients

Eden Logo

         

        We congratulate EDEN, the Emerald Development and Economic Network, Inc., as they celebrate 20 years of generously helping Cleveland, Ohio and the surrounding communities.

        EDEN provides safe and affordable housing to individuals and families who are low-income and either homeless and/or have a qualifying disability.  Their vision is to enable individuals who are disabled to maximize their full potential, exercise a degree of choice, and maintain their membership in the community. EDEN was founded in 1991 and broke ground by purchasing and renovating its first building, a 12-bed adult care facility for the elderly, in Cleveland Heights.  They also assumed ownership of 11 buildings and 22 housing units, all while functioning with a staff of 3 people. Today, EDEN now owns nearly 90 properties throughout Cuyahoga County, administers 22 housing programs, and employs a staff of 102.

        We are very proud of EDEN for their growth and accomplishments. They will undoubtedly continue to serve and improve the community around them well into the future! For more information about EDEN and their services please visit their website at EDEN.  

  

EventsNBI

Upcoming Fanger & Associates LLC Events

  

Seminar - "Tax Exempt Organizations from Start to Finish" 

 

        Do you have a firm understanding of the accountability standards and requirements of tax-exempt organizations? Would you like to develop a more thorough understanding of establishing and operating tax-exempt organizations or the ability to advise your clients more effectively in this process?

        Jeffrey J. Fanger will be presenting at the National Business Institute's 2011 Fall Seminar - "Tax Exempt Organizations from Start to Finish" in Independence, Ohio. This seminar is designed to help educate you on all of the accountability standards required, walk you through how tax-exempt status is achieved as well as the benefits, discuss the required forms and exemptions available, give you a better understanding of the potential liabilities of directors and officers, inform you of key methods to maintain an ethical practice, and guide you through this comprehensive process of all of the legal and tax aspects of exempt organizations. After attending the seminar, you will possess the knowledge you need to succeed in establishing or operating a tax-exempt organization, and the necessary tools to run you're nonprofit more efficiently.

        The seminar will be held on Thursday, October 27th, 2011 from 8:30 am - 4:40 pm at the Holiday Inn in Independence, Ohio. If you would like to register for the seminar or learn more information about the event, please visit NBI Seminar.   You may also contact us at (216) 382-0025 with any additional questions.           

 

Firm Update

What's new at Fanger & Associates LLC 

 

New Promotion on Our Legal Team!

By: Larissa Martin

 

Tim Smanik

Tim Smanik

        This month we welcome Tim Smanik, the newest arrival to the Fanger & Associates legal Team. He will be practicing in the areas of litigation, corporate and business law, corporate, nonprofit, and LLC formation and representation, as well as conducting legal research.

        Mr. Smanik received his Juris Doctorate from Capital University Law School in 2009 and is a member of the Ohio State Bar Association and the Cleveland Metropolitan Bar Association.     

        In addition to his law degree, Mr. Smanik earned a Bachelor's degree in History and was a member of the National History Honor Society. He has always been inspired to be in the legal field as he had already decided he wanted to be a lawyer back in the second grade.

        Mr. Smanik's strong abilities and experience will make him an excellent asset to our legal team.  Clients with legal questions or concerns are encouraged to contact Mr. Smanik to discuss the options available to them.  

Women and Computer Nonprofit Resources
Spotlighting Internet Resources for Nonprofits

                           LINC OHIO

Legal Information for Nonprofit Corporations 

www.lincohio.org 

  

What:  The website is for anyone thinking of starting a nonprofit organization and assistance for existing nonprofits to help them accomplish their goals.  

Mission:  To help support new and existing nonprofit organizations with their legal & management needs.

Services:  Provides over 2,500 Internet resources to help nonprofit organizations to either get started and/or to continue to grow effectively.  

Check It Out:  Resource Center - includes:  advocacy & lobbying, background information & portals, faith-based initiatives, federal and state regulations, grants, IRS and nonprofits, nonprofit leadership, nonprofit & technology, Office of Management and Budget, publications, starting a nonprofit, taxes, three-sector partnerships, U.S. Post Office - nonprofit information, volunteerism.     

Firm Logo 2010 
The opinions and views expressed in this newsletter are solely those of the author of the article and/or Fanger & Associates LLC. Articles appearing in this newsletter are intended to provide broad, general information about the law. This newsletter is sent to clients and friends of Fanger & Associates LLC, as well as Ohio businesses and Ohio nonprofit corporations as identified through their registration with the Ohio Secretary of State, including organizations with which Fanger & Associates LLC has no prior contact. Before applying this information to any specific legal problem, readers are urged to seek advice from an attorney. If you have any questions regarding any topic in this publication and you already have a lawyer, please contact your lawyer. If you do not already have counsel, please feel free to contact Fanger & Associates LLC and we will be happy to assist you.
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