Full question:
This concerms financial reporting requirements for an Established Foundation that is registered in California and would be set up, say for example, suicide prevention whereby the foundations, for example, takes in $30,000 in donations during the first year of activity. My question is, 'How does an individual gain access to CA State and/or Federal documents required for accounts filings related to how the the foundation utilized the $30,000 donation money, its distribution, its accountability and how it was reported? In other words I want to determine if the $30,000 donation money was used properly for its intended purpose according to the this type of registered foundation laws, or if there were misappropriation of these funds?
- Category: Corporations
- Subcategory: NonProfit Corporation
- Date:
- State: California
Answer:
The ability to access financial records of a foundation in California depends on the individual's relationship to the foundation and the nature of their claim. For instance, an officer or shareholder may have the right to inspect the records. If a person has 'standing'—meaning they have a stake in the outcome—they might petition for an accounting if there's evidence of a breach of fiduciary duty or theft. In cases where a civil lawsuit is filed, such as for fraud, relevant corporate records may be obtained during the discovery process through requests for production or interrogatories.
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