Can you borrow from "designated funds" to pay other bills, and then replace the funds later?
a serious risk in using donor restricted funds for a purpose
different from the purpose designated by the donor. In Pennsylvania,
the CEO of the Allegheny Health Education and Research Foundation
was convicted of misappropriation of entrusted property and
sentenced to up to two years in a halfway house for using
funds designated for scholarships and research for the general
purposes of various hospitals before they filed for bankruptcy.
Nonprofit Issues®, September 2002.) At the
very least, you run the risk of civil liability for breach
of fiduciary duty, especially if you can’t pay the money
back to the designated fund. It may come out of your own pocket.
State Charitable Solicitation Statutes: Everything You Wanted to Know But Were Afraid to Ask
Charities that seek contributions nationally must typically register in 39 states and the District of Columbia before starting to solicit. Furthermore, for-profit fundraisers are also required to register and file their contracts and other documentation with many states. Since many states are increasing their enforcement efforts to ensure that charities and fundraisers are complying with initial and annual registration requirements, it's important that charities and fundraisers abide by these statutes.
Program materials include an extensive review of the statutes and their provisions, plus a copy of the Uniform Registration Statement for multi-state filings. Purchasers will receive an e-mail receipt that includes a link that will take them to the product download. The download is a pdf file. Learn More
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