If a sum of money is donated as a memorial to a nonprofit organization with a 501(c)(3) status and the money is deposited into the general fund of the organization to be used in purchasing something in the name of a deceased person as a memorial, can the monies be withdrawn from that organization and given to another nonprofit organization?
It depends on the understanding of the donor and the restrictions placed on the gift at the time the gift was made. If it was a general operating gift in the name of the deceased persons, the organization can use it for general operations, which might include a grant to another nonprofit. If it were given for a special fund in the name of the deceased for a special purpose, it would have to be used for that purpose. Since money is fungible, however, it is not clear why the charity could not give "other" money to the other nonprofit and keep the memorial gift to be used more directly in honor of the deceased.
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