James Huntsman Lawsuit Dismissed

A quick follow-up to one of my previous posts: a federal judge dismissed James Huntsman’s fraud lawsuit against the church on Friday.

This may not have been an absolutely forgone conclusion, but it comes pretty close to one. Remember, Huntsman was suing to get his tithing money back from the church. That’s a tough ask in the first place because, other than conditional gifts, US law treats charitable donations as belonging to the recipient. Just because you later regret having made the donation doesn’t mean you can rescind it.

So Huntsman alleged that the church had fraudulently induced him to pay tithing. He relied, he said, on several statements from the church that it did not using tithing money to build City Creek when, in fact, it did use tithing money to build City Creek.

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I Want It Back

There are two recent lawsuits filed against the LDS church that are worth taking a look at. Both lawsuits demand that the church return donations to the donor (or the donor’s heirs).

And both face a major impediment: as a general rule, if you make a charitable donation, you can’t get that donation back. And that’s the case even if the you have a falling out with the charitable organization. In fact, that’s the case even if the charitable organization uses your gift in a way that you, personally, find offensive. (In that case, you can certainly stop making charitable donations in the future, of course. But you don’t get your prior donations back.)

There are exceptions to this general rule, of course. And the plaintiffs in the two cases try to get around the rule by using two different exceptions.

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Some Tax Benefits Are Just for Churches

(I originally wanted to call this “Pastoral Housing, Take 2″[fn1] but, it turns out, pastoral housing is only one small aspect of the case.)

Last week, a federal court in Kentucky issued a decision in a lawsuit that could have far-reaching ramifications for churches.[fn2] In broad strokes, American Atheists, Inc., Atheists of Northern Indiana, Inc., and Atheist Archives of Kentucky, Inc. sued the IRS, arguing that certain tax provisions applicable solely to churches were unconstitutionally discriminatory. [Read more…]