non-profit law

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Latest post 05-11-2009 2:51 PM by Drew. 3 replies.
  • 05-11-2009 7:47 AM

    • moslof
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    • Joined on 05-09-2009
    • PA
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    non-profit law

    Pennsylvania; Can a nonprofit collect money's that where donated to another nonprofit when the second nonprofit goes belly up. If a American Legion donates money's to a cilvil war reinactor group to buy a trailer and the civil war reinactors disband and sells the trailer to pay bill's can the Legion request the moneys back from the Legion member who headed the civil war group, And I believe the group was incorpoated. &nbs...

  • 05-11-2009 7:55 AM In reply to

    Re: non-profit law

    The American Legion can certainly ask for the funds to be returned from the other group.  There are cases where donors have sued non-profits for misuse of restricted funds.... Much would depend on the "gift instrument" that conveyed the restrictions on the use of funds. 

    On the other hand, if the re-enactors group is defunct and will no longer be traveling to events, the fact that they sold the trailer -- probably one of their few tangible assets -- to pay other makes some sense. 

  • 05-11-2009 2:20 PM In reply to

    Re: non-profit law

    The donor can certainly sue for the return of the money. How successful that lawsuit will be is impossible to predict.

    If the civil war group is incorporated (and you can find out for sure by calling the Secty of State corporation regulatory department) then the individual who runs it is protected against any lawsuit.

    And if the corporation is defunct with no money and no assets then the answer to "can a non-profit COLLECT?" is almost assuredly no.

     

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • 05-11-2009 2:51 PM In reply to

    • Drew
      Consumer
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    • Joined on 03-30-2000
    • PA
    • Posts 37,827

    Re: non-profit law

    Laymans take:

     

    1. If it was a true donation, a gift, there is little room to get it back.

    2. If it was a contract , some performance of something in return for something and all that good stuff then yes you could sue for breech of contract--but getting money out of a turnip is pretty hard even if you are correct and win.

       You can request it and perhaps even symbolically tar and feather the group for  buying a trailer then selling it when it had a moral duty to you otherwise--but I don't see a legal duty.

     

    Now if the Legion member who solicited the funds did any funny stuff you might be able to go after the member himself but we are way short on any details or any reason why member misbehaved. Lots of groups falter and leave donors stranded --we have an example right near me of $3-4-500,000 donated to an American Revolutionary issue that went belly up and well meaning donors got left in cold. 

    You might be able to shame the member into digging up  equivalent funds if you feel his judgementws particularily bad---but thats barter skills and not legal isues.

     

     

     

     



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