July 16-August 15, 2012

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Lead Stories

Fundraiser Must Pay $8 Million For Violation of Confidentiality

Court affirms arbitrator’s award of compensatory and punitive damages for disclosure of information

Charity May Sue Director For Breach of Duty on Contract

Arbitration clause in construction contract does not prevent separate fiduciary duty claim in court

Officer Has No Property Right In Position on Executive Board

Court allows executive board to remove president by following procedures set forth in bylaws
Ready Reference
To the Point

Will misuse of funds jeopardize our future applications for grants?

I am on the board of our 501(c)(3) nonprofit animal rescue where the president and treasurer have recently resigned. When we looked at the books we discovered that grant funds for spay neuter had been used for other purposes that we are not sure of. According to the terms of the grant, the funds were to be used for spay neuter only and if not used by December 2012, unused funds were to be returned. One of our Board members has now decided that we need to replace these funds and say nothing. What is the possible damage for such action and if the funds cannot be replaced, how does this jeopardize our future applications for grants?