What would happen in this legal situation? ?

Person A gives specified money to a non profit organization to provide drama classes and arts program with those terms. 

Non profit sees the money but turns out and uses for the sports program and merit scholarships. Person A is super upset and wants there money back plus punitive damage. 

7 Answers

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  • 1 month ago

    Did you make them sign a contract of sorts?

    Always document a deal and hold them accountable in case of misuse.

  • 1 month ago

    I can't even guess from what you wrote.  Was a contract signed?  Was the deal verbal?  When you donate money, you don't usually get to decide how they should spend that money.  If they promise you they will spend it the way you want, you can hope that they will honor your wishes but if your donation is based on how they will spend it, you probably should have them sign a contract.

    Source(s): Certified Paralegal, with 25+ years' experience.
  • 1 month ago

    DEBS is incorrectly.

    If a non-profit, the money has to stay in the fund for that purpose unless the funds are no longer needed.

    If there is a fund for drama classes and person A donates money to it, then the money has to be used for drama.  The thing is, you wouldn't know whose money wasn't used for drama.

    If the money is put in the general fund and the person acts for it to be used for drama, you can't make this happen.

    If drama doesn't exist and you are donating enough to have drama classes, then you would be better off granting the money to the non-profit instead of donating, which would outline the specific terms of use for the money.

  • 1 month ago

    If the donation was earmarked, in writing, for a specific program(s), the organization must use those funds for that program. See your attorney regarding misuse of donations by the organization. Show him/her the documents which spelled out the terms & conditions of the donation.

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  • 1 month ago

    Unless 'those terms' were in a written contract, then this person is out of luck.

    You're describing the Red Cross (and likely many other organizations).  They ask for donations all the time during disasters saying, "To help victims of {insert bad thing here}, please donate to the Red Cross today."  What they don't tell you is that all donations go to a general fund, regardless of how they are collected, and are used for whatever the Red Cross wants to use them on.  That includes anything from helping victims to paying about $700,000 to their CEO.

  • Anonymous
    1 month ago

    Person A would have to sue the non-profit. I'm guessing that if the money was ear-marked for a specific purpose and the donor could prove that, he would have a case, but this could vary wildly from place to place..

  • Anonymous
    1 month ago

    I'm not aware of any law that allows a donor to a non-profit to determine what that non-profit does with their donation.

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