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    PennyFarrar's Avatar
    PennyFarrar Posts: 1, Reputation: 1
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    #1

    Jan 29, 2012, 02:32 PM
    501 (c) corporations
    If a 501(c) organization in its Articles of Incorporation state that its specific purpose is to aid homeless veterans, is it legal for them to use funds collected either solicited or unsolicited, to aid homeless that are not veterans?
    AK lawyer's Avatar
    AK lawyer Posts: 12,592, Reputation: 977
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    #2

    Jan 29, 2012, 06:05 PM
    Srictly speaking, I guess that would be ultra vires, but I question who would have standing to object. It is probably a non-profit corporation; if so a member could. Since it is a 501 (c) organization, the I.R.S. might too. Donors as well, probably.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #3

    Jan 29, 2012, 10:09 PM
    They will need to inform all parties, esp donors that this will be done. A veteran donating money may feel he was cheated or there was a fraud, if they give money to help veterans and then the money is not used for that. They risk legal trouble for doing so.
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