July 1-31, 2014

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Lead Stories

Trustee for Charity Must Invest Income-Only Fund for Growth

Failure to diversify investments beyond bonds constitutes breach of fiduciary duty

Resident Director Is Validly Elected After Community Ceases to be a CCRC

Although legal requirement no longer applies, nonprofit properly followed its articles and bylaws

Delaware AG Is Not Indispensable Party In Suit Over Florida Trust for Delaware Residents

Florida court refuses to reopen litigation to allow Delaware Attorney General to intervene 10 years after judgment
Your Legal Questions Answered

May the board reject president’s resignation?

My elderly mother is still president, largely absentee, of a 501(c)(3) rescue organization that she founded with the VP many years ago. The VP recently died and left a lot of money in trust to keep the nonprofit open. In the absence of strong officers or a strong board, wolves are circling. There is going to be a battle for management of the corporation that my mother can’t handle. She handed in her resignation but the board rejected it. Can they reject her resignation?

How much can I pay myself if I start a 501(c)(3)?

I recently launched an organization focused on helping victims of disasters and crises, and enabling others to find opportunities to help those affected by disasters. It primarily consists of a fairly comprehensive website and online community that I am paying for out of my own pocket. I am interested in creating a 501(c)(3) and accepting donations. I'd like to dedicate all of my time to the cause. If I form a (c)(3) corporation, how much can I pay myself? For example, if I bring in $20,000/year, can the (c)(3) pay me the full $20,000? If I bring in $100,000, can I be paid $60,000? I've read through the guidelines and this is the statement that gets me every time - "must not operate for the benefit of private interests such as those of its founder, the founder’s family, its shareholders or persons controlled by such interests."