Nonprofit Can’t Collect from Bank For Unauthorized Withdrawals

Failure to review bank statements and complain prevents organization from recovering losses

A nonprofit association in New York City has been told that it cannot collect $185,000 in unauthorized withdrawals from its account when it failed to review its monthly bank statements and complain over a period of five years. A trial court has granted Capital One Bank’s summary judgment motion to dismiss the complaint. ( Royal Arcanum Hospital Association of Kings County v. Herrnkind, Supreme Court of NY, Kings County, 3/28/12 .) The association originally authorized opening an account at a predecessor of Capital One in 1989. According to its board minutes, it authorized any two of its president (Frank Vassalo) vice-president (William Herrnkind) and treasurer (Joeseph Rugilio) to sign for...

lock The full text of this article is available to paid subscribers only. Login or subscribe to read more

December Webinar

Nonprofit Law: The Year in Review
Wednesday, December 11, 2024
1:30-3:00 PM ET

Join Nonprofit Issues® editor Don Kramer for his annual review of key developments in nonprofit law, one of our most popular webinars of the year. There have been a string of important developments affecting the sector.

Learn more and register

Nonprofit bylaw review

Don Kramer will review and comment on your own current or proposed bylaws

Do your Bylaws reflect the way you actually operate? Do they protect the interests of those who should be protected? Do they spell out clearly how to deal with governance issues? Or do they create uncertainty for those who have to implement them?

Most nonprofits don't spend a lot of time looking at their Bylaws until there is a question or a dispute. That's when you need bylaws that are clear and unambiguous, so your questions on how to proceed are already answered. That's when bad bylaws can lead to unnecessary controversies or even costly litigation. Nonprofit Issues editor Don Kramer will review your current or proposed Bylaws to see if they work for you.

Learn more

New Subscribers can have full access to the entire website and all editions for 3 months for only $17.95.

Subscribe Today

Here's what our readers say about Nonprofit Issues:
Thanks again for your excellent and helpful website - it's a wonderful resource for the non-profit community! --Stephanie H.

Thank you for your informative and keen advice on nonprofit matters. I believe it's a unique and concise place to get answers to this often wispy area called nonprofit. --Richard T.

SAY THAT AGAIN?

October 29, 2024

Marketers love to make their prospects feel special. But they sometimes don’t seem to want you to think about what they say to do it.

I received two items recently that made me wonder what they were thinking.

I got a package of discount coupons in the mail that touted a “specially curated” set of offers. I thought they might have my personal interests at heart until I saw it was addressed to “Resident.”

I also got a text message saying that “Kellyanne Conway wants YOU and only YOU to know what the latest polling shows” about the Presidential election. I could click the link to read the “exclusive” memo.

And I will be the only one to know? Really? Do they really think the recipients are that stupid?

See our "Say That Again" collection

Special Report Available

Increasing Gender Diversity on the Boards of Nonprofit Eds and Meds: Why and How to Do It

This report provides a rare inside view on barriers women face to selection and success that are particular to nonprofit organizations and makes specific recommendations on how to improve the gender ratio.
Download the full report free

YOUR ONE-STOP PLACE FOR NONPROFIT LAW YOU NEED TO KNOW

Nonprofit Can’t Collect from Bank For Unauthorized Withdrawals

Nonprofit Can’t Collect from Bank For Unauthorized Withdrawals