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Disaffiliated chapter need not share bequests with parent

Disaffiliated chapter need not share bequests with parent

Disaffiliated chapter need not share bequests with parent

A disaffiliated Los Angeles chapter of the American Lung Association is not required to share the income from several bequests with the national organization when the bequests were drafted prior to local chapter’s disaffiliation from the state and national. A California appellate court has reversed a trial court decision and held that the money should stay with the local chapter under a carefully drawn affiliation agreement. The American Lung Association of Los Angeles County disaffiliated from the state and national organizations and became known as Breathe Southern California in 2006. Prior to the break-up, it had operated under an affiliation agreement that called for “income sharing”...

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