Charity may blame accountant for registration violation
The Supreme Court of Missouri has reversed the state’s Court of Appeals which had held that a charity could not blame its violation of charitable solicitation registration statutes on its accountants who failed to produce an accurate financial statement. ( See Nonprofit Issues®, May 16, 2010 .) The Children’s Wish Foundation was cited in 2000 by the Pennsylvania Bureau of Charitable Organizations for providing false financial statements that did not accurately reflect the volume of in-kind gifts it had received from its donors in 1999. The auditors had compared the amount of goods in inventory at the end of the year to the record of the amount donated. The amount the charity said had been...
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