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.
Charity fundraising event planners have to worry not only about the invitation list, the menu and the program. They also have to worry about a host of legal issues that, if ignored, could turn the event into a financial and public relations disaster. This webinar will explore the top ten areas of legal concern for a charity’s annual gala dinner dance, bikathon, day in the park, or other special fundraising event. Learn more in our pre-recorded webinar.
Weekly question and answer
Notice of each full edition
and its free stories
Report on 501(c)(3) electioneering
What our readers say about Nonprofit Issues
Once again you've tackled a tricky question and explained it so we all can understand the issue.--M.V.
Thank you for your informative and keen advice on nonprofit matters. I believe it's a unique and concise place to get answers to this often wispy area called nonprofit. --R.T.
Have a question?
Other ways to
Talk to the Editor
Next Conference Call:
Thursday, August 7, 2014
Participate in this bi-monthly telephone seminar conference call and ask your questions directly to Editor Don Kramer.
Access the entire site
($9.95/24 hours, $17.95/3 months).
Full Day Program
A well-received full-day program that covers the current hottest topics in nonprofit law. Qualifies in Pennsylvania for Continuing Education credits.
Don is available for programs and speaking engagements ranging from a one-hour presentation to a full-day primer on nonprofit law. Contact us if you are interested in having him speak at your program.