Stipulated Judgment Against Fiscal Sponsor for Misspending Donations

Fiscal sponsors must respect laws related to protecting assets restricted to furthering the charitable purposes of specific projects . If funds intended for a particular internal (Model A) project are diverted and used for other purposes (e.g., the fiscal sponsor’s general operating expenses), there may be legal repercussions. This was very recently exemplified in a […]

L3C and Charitable Trust

Here is a question I posed to some colleagues recently regarding the low-profit limited liability company (L3C) and charitable trust laws: Is it clear whether or not an L3C that receives a PRI is holding property for charitable purposes subject to charitable trust restrictions and Attorney General jurisdiction? While the L3C is not subject to […]

Charitable Trust Doctrine

The charitable trust doctrine requires that a gift accepted by a charitable organization must only be used for the expressly declared charitable purposes of the donee corporation at the time of the acceptance, even if the corporation changes its purpose, transfers those assets or dissolves.  Such restriction is imposed notwithstanding the fact that the donor […]