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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 116703
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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This question is for a non-profit lawyer.I started a

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This question is for a non-profit lawyer. I started a non-profit in MD to help military folks. We completed INC in March 2013, setup bye laws with 7 directors. I am the President Some of the directors I knew in person but had not worked before. Now after 3-4 months of working two directors has become non-productive. One is very obstructive and another is not involved. I tried to convince other board members to vote them out but they are hesitating due to personal relationship they have and other alliances. The vision for the non-profit was from me and my wife and we feel we are not making any headway now. What are our options. We could ask the board to dissolve the entity and start again. I registered the domain name for the non-profit in Jan with my personal funds. Domain is I built a good website with personal effort and funds. I want to confirm that the website and contents are not assets of the non-profit and we can still use it if we have to dissolve the entity. Raj Cell: XXX XXX XXXX

Thank you for your question. I look forward to working with you to provide you the information you are seeking.

Directors can be removed only in accordance with your bylaws of your non-profit. If the board will not vote out these directors, then you need to consider running someone against them at your annual meeting to replace them. Those are the ways directors are removed and you are bound to the bylaws with removal of the directors.

Just because you paid for your website and you designed it, without a written agreement to the contrary, the site would belong to the non-profit as you did turn it over to them. Thus, the non-profit would likely be able to win if they fought to stop you from taking the site from them and reusing it unless the non-profit is indeed dissolved and you reform.

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Customer: replied 3 years ago.

What happens to the domain which I registered in my name before the non-profit entity was formed. I hosted the domain and built the website and now we have also some members who have registered on the site. I cant run anyone else against the directors. Have to convince them to leave or dissolve the entity and reform. Given this experience we are thinking of forming a LLC rather than a non-profit and asking some of the good directors to become advisory members on our LLC. A LLC has more taxes but we will have more control. Donations into the LLC will be less but we will have more opportunities to get revenues. Any specific advise in our situation

Thank you for your response.

If the name has been registered before the non-profit, once you gave it to the non-profit they now own that name and would be able to keep use of the site.

Crossing over to form a new LLC that is not a non-profit would mean that any contributors would not get any tax deductions which would significantly decrease your contributions. You could consider forming a new non-profit with the same goals and objectives as the current one, which would put you in competition with this non-profit, but it would be permissible.

When you form the new non-profit or LLC you would need to make sure you put bylaws or membership agreements in place to prevent this situation from happening in the future.

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