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As hotels seek to expand their customer bases during these difficult economic times, one potential source of income and customers has been the rather prolific growth in gift card sales. Everyone is getting into the gift card game – restaurants, retailers, hotel companies, gas stations and more. Sales in 2008 alone totaled approximately $90 billion. For hotel companies, when someone purchases or gives a hotel gift card, it creates an opportunity to attract a new or returning customer to spend money at a hotel. However, implementing these programs requires careful consideration of both state and federal laws – which are complicated, sometimes inconsistent but necessary to understand in order to avoid fines and penalties for improperly designed programs.
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This update examines the prohibition of religious institutions from engaging in activities that result in inurement of a church's or faith-based organization's income or assets to insiders. A case review includes discussion of an Arkansas case in which an issuance of tax-exempt bonds to a university associated with the Churches of Christ were found not to violate the state constitution, and a Wisconsin Supreme Court case in which it was held that both federal and state free exercise clauses prohibit employment discrimination claims against employees whose positions are "important and closely linked to the religious mission of a religious organization."
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