Article Archives >> To the Point
Our 501(c)(3) organization recently received a Chinese “knockoff” of a patented U.S. product for sale at our silent auction. A representative of the company holding the patent agreed that it was a fake. We told the donor and withheld it from sale. The donor wants the item back. Should we give it back or give it to the company? Do we have the right to give the donor’s name to the company?
Since the donor gave the item to your auction and you decided – quite correctly in my view – not to sell it, I think you have legitimate grounds to return it to the donor. I don’t see any reason for you to give it to the company based on its claim that the product is a fake.
I don’t think you have any legal obligation to report the donor’s name to the company. You don’t know the circumstances under which your donor obtained the item and you have only the company’s claim that it is a knockoff. Your donor may have received warranties on its acquisition. I would leave it up to your donor to decide what to do about the company’s claim.
11/16/2009
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?
If you can't find your answer, submit a question and Don will pick one question a week to answer online and to include in our weekly e-mail notice.
Other ways to
find answers:
Talk to the Editor
Next Conference Call:
Tuesday, February 14, 2012
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).
Nonprofit Issues
Live
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.
Speaking Engagements
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.