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What are my options if a nonprofit organization decides to…

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What are my options if...
What are my options if a nonprofit organization decides to dissolve a company and they decided that they were going to split club monies amongst the 9 members but they change their mind to donate monies in the account to a charity? Are they able to donate this money to a charity and the committee didn't vote on it? The President and the treasurer are spouses and they are the only person's on bank acct. and registered with secretary of state.
Submitted: 8 years ago.Category: Business Law
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Answered in 40 minutes by:
6/16/2010
Business Lawyer: Thomas McJD, Attorney replied 8 years ago
Thomas McJD
Thomas McJD, Attorney
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Is this a 501(c)(3) non-profit? If so, the Internal Revenue Code requires that any assets left after dissolution be given to another 501(c)(3) non-profit organization.

 

If it is not a 501(c)(3), the funds cannot be distributed to a charity when formal minutes of the corporation reflects a decision that the funds be split among the members. There needs to be additional minutes reflecting the new decision to give the money to charity. This can be done by action without a meeting if all the directors given written confirmation of the decision.

 

http://www.faqs.org/sec-filings/100510/LOUISIANA-PACIFIC-CORP_10-Q/dex32.htm

 

see page 7 of that document for the law concerning action without a meeting.

 

 

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You understand that your use of or communication on this forum, in any and all ways, is intended for general informational purposes only and shall not constitute and/or be relied upon as legal advice or be construed as creating an attorney-client relationship. Further, you agree not to rely on anything I say and will obtain appropriate legal and or tax advice with an attorney or other professional licensed to practice in the jurisdiction where your legal or other issue arises.

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Business Lawyer: Thomas McJD, Attorney replied 8 years ago

Did you have additional questions with which I might help you. If so, please let me know. If not, your accept is appreciated.

 

 

_________________________________________________________________________________________________

 

 

You understand that your use of or communication on this forum, in any and all ways, is intended for general informational purposes only and shall not constitute and/or be relied upon as legal advice or be construed as creating an attorney-client relationship. Further, you agree not to rely on anything I say and will obtain appropriate legal and or tax advice with an attorney or other professional licensed to practice in the jurisdiction where your legal or other issue arises.

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