Can a non profit force you to make a donation?

Full question:

Can a non profit force you to make a donation? I signed a contract with a non profit, but due to financial problems I am unable to make the payments. Can they force me to make a payment since it's non profit?

  • Category: Contracts
  • Date:
  • State: New York

Answer:

A pledge agreement could be viewed as an enforceable contract. A pledge may be a legal contract, regardless of the non-profit nature of one of the parties to the contract. State laws differ as to how enforceable philanthropic promises are. Often the intent of the parties and the degree of formality of the pledge will determine the outcome of a dispute. If the contract is specific about when and how pledges are to be paid, structured, and used, it will make it more likely to be enforced. If the charity has acted in reliance on the pledge, the likelihood a court would find the pledge enforceable increases.

Courts have shown a willingness to enforce pledges, especially when some sort of consideration (a benefit to the donor) is involved. For example, consideration may be found to exist when a charity will name a building after a donor in exchange for a pledge. The legal definition of when sufficient consideration has been received is frequently a subject for the courts to determine.

Please see the information at the following links:

http://definitions.uslegal.com/c/charitable-giving/
http://definitions.uslegal.com/c/charities/
http://lawdigest.uslegal.com/consumer-issues/contracts/
http://lawdigest.uslegal.com/consumer-issues/consumer-rights-and-protection/
http://definitions.uslegal.com/c/contracts-consideration/
http://definitions.uslegal.com/d/detrimental-reliance/

 

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Nonprofits are generally prohibited from using funds for personal gain or profit. They cannot engage in activities that do not align with their mission or violate their tax-exempt status. Additionally, they must avoid excessive compensation for employees or board members and cannot use funds for political campaigning or lobbying beyond certain limits. Misuse of funds can lead to penalties or loss of tax-exempt status.