Bank Account Space for Personal Funds

[tacbd]

Dear World Law Direct Forum,

A member of our Board of Directors was recently the victim of an internet scam and has lost his bank account as a result. He cannot start a new one because of the nature of the scam and the bank's policy and an inquiry was made as to whether or not we could temporarily use the nonprofit organizations bank account or a portion of it to store his personal funds until he is able to rectify the situation. As this is effecting him it is also effecting the organization, so we would like to assist him in resolving it.

The way we are trying to rectify the situation is to allot space in the bank account for his personal funds as a charitable service to him, whereby all transactions that are made to his name by way of his personal services and which are unrelated to the operations of the nonprofit is documented and quarantined from the funding that the nonprofit is pulling in. We were considering this or possibly opening another smaller bank account and offering that space as an assistance to him. The question is whether or not this is a legal utilization of our resources, and if not how could we rectify the situation legally.

The member of the Board will not benefit in any way from this besides just being allotted the space, he would be reimbursing the organization for any fees, etc. that are incurred as a result of the action.

Any advice on such an issue would be greatly appreciated. Searching for an answer I came across a lot of documentation in regards to people misappropriating funds but did not find any information on legally utilizing bank space for personages within the organization when the lack thereof inhibits its operations.

Regards,
Ben

[AFFA]

I wish to inform you that the bye laws of the non profit will have jurisdiction in this matter. If the bye laws permit such a use of bank space then the board of directors may permit it. At the time of voting, the member having personal interest in the transaction may not vote in the matter. Further, if there has been online scam, then a complaint may be filed with IC3 (Internet Crime Complaint Center). All the details may be provided for IC3 to investigate the complaint. The complaint may be filed online.

AFF

[tacbd]

AFFA,

Thank you for the response, it was extremely helpful. One followup question: if the Director for whom the space is to be reserved may not vote, then is it 100% of the remaining Board of Directors that must vote Yes? The organization is in California, I'm not sure if that makes a difference in regards to the question.

Thanks Again,
Ben

[Friend In Court]

Originally Posted by tacbd Dear World Law Direct Forum, A member of our Board of Directors was recently the victim of an internet scam and has lost his bank account as a result. He cannot start a new one because of the nature of the scam and the bank's policy and an inquiry was made as to whether or not we could temporarily use the nonprofit organizations bank account or a portion of it to store his personal funds until he is able to rectify the situation. As this is effecting him it is also effecting the organization, so we would like to assist him in resolving it. The way we are trying to rectify the situation is to allot space in the bank account for his personal funds as a charitable service to him, whereby all transactions that are made to his name by way of his personal services and which are unrelated to the operations of the nonprofit is documented and quarantined from the funding that the nonprofit is pulling in. We were considering this or possibly opening another smaller bank account and offering that space as an assistance to him. The question is whether or not this is a legal utilization of our resources, and if not how could we rectify the situation legally. The member of the Board will not benefit in any way from this besides just being allotted the space, he would be reimbursing the organization for any fees, etc. that are incurred as a result of the action. Any advice on such an issue would be greatly appreciated. Searching for an answer I came across a lot of documentation in regards to people misappropriating funds but did not find any information on legally utilizing bank space for personages within the organization when the lack thereof inhibits its operations. Regards, Ben

To keep your non profit totally in the clear, it would be far better NOT to use the non profit bank account for anything other than the funds that belong to the organization.

It would be better for one of the members to co sign for an account for him on a personal friendship basis than risk the integrity of the non profit.