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July 1-31, 2014

July 1, 2014 to July 31, 2014
Lead Stories
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."

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