nonprofit asset; the County Sheriffs department wants us to turn the title over
This is a discussion on nonprofit asset; the County Sheriffs department wants us to turn the title over within the Other Nonprofit Law Issues forum, part of the NONPROFIT LAW & FUNDRAISING category; We are a nonprofit search and resuce team and recently raised enough money to build a building to store our ...
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#1 |
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Junior Member
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Join Date: Jun 2012
Posts: 3
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We are a nonprofit search and resuce team and recently raised enough money to build a building to store our equipment. Now the County Sheriffs department wants us to turn the title over to them. What are the consequences of such an act?
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#2 |
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Top Level Member
Join Date: Dec 2009
Posts: 12,604
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I wish to inform you that non profits assets can be used for purposes of non profit. If court sheriff department intends to take over the asset then that court ordered can be challenged. Further reason of take over will govern your action. If non profits assets are deployed for purposes which is against its purposes then person responsible for such an act can be held liable.
AFF |
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#3 | |
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Moderator
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Join Date: Jun 2009
Location: The North Pole, silly ;)
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Quote:
The consequences depend on their reason for asking you to hand over the title.
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"If it ain't in writing, it never happened." "A lack of planning on your part does not constitute an emergency on my part." "You can never make the same mistake twice, because the second time you make it, it's not a mistake, but a CHOICE." |
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#4 |
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Junior Member
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Join Date: Jun 2012
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The Sheriff dept says they want the building because of liability reasons. They own the rescue vehicles we use on operations. The team built the building to store the trucks in the building. Now they say if we dont turn over the building to them, we cant store the trucks in the new building.
Aside from that issue, my concern is that the money we raised was from donors thinking they we donating to a non profit (which we are) but now we may have to give the building to the county who can do whatever they want with it. Can we as a board just change title to an asset without tax consequences or problems from the people who donated? |
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#5 | |
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Top Level Member
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Join Date: Apr 2011
Location: Florida
Posts: 6,794
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Quote:
Changing title as characterized is in fact giving it away. The County would have to pay to store their vehicles, either purchase land and building or pay rent. You can counter with a commercial rental agreement, and a tight one including whatever they need to settle the liability issue. Many counties self insure, so you could require they purchase insurance instead. |
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#6 |
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Junior Member
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Join Date: Jun 2012
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Thank you so much for your response. I thought it would be something like this.
your awesome. Carole |
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