Nonprofit Benefits Administrator Can’t Spend Funds on Union Election

Nonprofit Benefits Administrator Can’t Spend Funds on Union Election

Nonprofit Benefits Administrator Can’t Spend Funds on Union Election

Court says action violated articles of incorporation, bylaws, and policy against use of public funds for private benefit
A nonprofit health insurance benefit administrator has been enjoined from spending police union funds to support or oppose candidates in a union election even though authorized by its own board and the union officials overseeing the administrator. A divided Pennsylvania Commonwealth Court has reversed a trial court and ruled that such action is not authorized by the vendor’s articles of incorporation, bylaws or law. (Zampogna v. Law Enforcement Health Benefits, Commonwealth Ct., PA, No 1322 C.D. 2012, 11/27/13.)

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