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.
With pressure mounting on nonprofits to consider affiliations with other organizations, this workshop is designed to help you better navigate the world of mergers, acquisitions and affiliations. Unlike the corporate world, there are no financial "matchmakers" to help nonprofits identify successful partners for a merger. Learn more in our pre-recorded webinar.
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