One of our directors filed for a personal temporary restraining order against a member of our nonprofit corporation. The case was dismissed because neither party ever appeared in court. Now the director who brought the suit wants our Directors & Officers Insurance to pay his personal legal obligations. Can that be allowed to happen?
Our Orchid Society provides education on orchid culture to our members and other clubs who request our service. We have applied for 501(c)(3) charitable and educational classification. We have an annual orchid show and plant sale as our only fund raising event. Our members sell plants and supplies at this function and provide us with 20% of the sale proceeds. I've been told that this is wrong and it appears that we are organized to benefit the members. Will this affect our ability to get (c)(3) classification?
Our recreational softball league began with an election but since then the board has become secretive. Recently we have heard that they are using League funds for food and alcohol purchases, amended by-laws that we as members have never seen, appointed themselves for three-year terms and will be appointing two persons to fill vacancies. My questions are: 1. Are financials required to be made public in a 501(c)(3)? 2. Can they fix the board positions? 3. Can they appoint directors? 4. Can League funds be used for food and alcohol?
The president of our 501(c)(3) organization has an interest in a social issue that has no part of our 501(c)(3). He insists that he can collect donations using our tax id number for his own social interest organization/movement. As CEO of our organization, I think that this is an illegal use of our status. He argues that it is legal as long as he gives some of the collected funds to the original 501(c)(3). Who is right?