501c3 rules

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FWS

Dec 11, 2009, 06:58 AM

Under 501c3 - What are the guidelines for giving a monetary gift to a family in Financial Need? What if one of the family is a board member?

Fr_Chuck

Dec 11, 2009, 07:10 PM

It could cuase the group to come under review. They would have to document that this family were as bad off , if not worst, than others, and they need to have good records of many , many other families that were helped.

If they help 10,000 families and then help one that is part of the group,that is one thing, if they only help 4 familis and then do one, that is a lot different.

The board member thierself could not be one of the people being helped

ebaines

Dec 14, 2009, 07:50 AM

The board member thierself could not be one of the people being helped

Right! This is a clear conflict of interest. Also, payments could be construed as compensation, and board members can not receive compensation (other than reimbursement for out-of-pocket expenses). If this person receives money from the organization he must be removed from the board first.