Nonprofit Law YOU Want to Know
We regularly feature answers to questions from readers in our “To the Point” column. The full list can be viewed here. Here are a few questions recently received from readers. Can inactive members sue to recoup funds? A nonprofit organization with a mission to preserve and expand the French culture had an endowment of $20,000 and became inactive for approximately 10 years (no annual or other formal meetings) in 1999. The bylaws in effect at the time stated that only the interest on the endowment could be spent unless 2/3 of the membership approved spending the principal and then only 1/2 ($10,000) of the principal could be spent. Since it appeared that the organization was soon to go out of...
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