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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 110442
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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I volunteer for a local non profit soccer club. We recently

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I volunteer for a local non profit soccer club. We recently received invoices from our "parent" non profit soccer organization from as far back as 2009 and 2010. As a non profit we have a very specific and dedicated budget and these unforeseen invoices will really hurt our contingency funds. My direct question is are we responsible for these invoices that are 3 and 4 years old?
What is the reason for the invoices? Were they for something that your group was bound to pay the parent group?
Customer: replied 3 years ago.

There are fees that the club incurrs for games played out of our organization that the "parent" organization and is supposed to recoup from the clubs in the organization but there seems to have been bad record keeping and we are being billed for several years at once. The invoice from 2009 stems from tournament fees that are being passed down to us but we are being billed for 2009, 2010, 2011, 2012 all at the same time. Again this all appears to be bad book keeping and invoicing on there part.

Under Texas law there is a 4 year statute of limitations for suing for breach of contract, however, as this is your parent organization if you refuse to pay even though it may be out of the statute of limitations, they would have legal right to remove any charter or agreement with you to be your parent organization. Thus, while they legally could not sue for anything beyond the 4 years, they could sue you for debts less than 4 years and could also refuse to allow you to keep operating under their name.

Thus, you have to either negotiate repayment with them or they could take action if these are legitimate fees that were due pursuant to your agreement with the parent organization. Even if there was poor record keeping, if these fees are due pursuant to your agreement, they will still have legal right to collect them I am afraid, so you need to make some arrangements to pay them and have some type of fundraiser or dues assessment on the members to pay the fees.

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Customer: replied 3 years ago.

Obviously not the answer we were hoping for but your help has been of great help as we have been given a wide variety of advice that could have been hurtful to the club. Thanks for your assistance.

You need to deal with your parent organization and work out a payment plan with them if these are fees your group was obligated to pay through agreement with them. Most parent groups would be reasonable in working out something.

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