Legal Question in Credit and Debt Law in California

Re: Past due invoice

The organizations nonprofit status really has nothing to do with this. They are like any other business, and if they owe you money, you can retain an attorney and file a collection suit, you can assign this to a collection agency and let them deal with it (for a fee which is generally a percentage of what is owed), or you can sell the debt to someone, again for a significant discount. I would suggest that the most effective means to collect is going to be to retain an attorney, have them attempt to resolve it non-judicially, and if that doesn't work, then have them file suit and obtain a judgment. I'm not personally aware of any ability to affect their 501(c)(3) status for failure to pay bills. Nonprofit status is granted by the IRS and the state Franchise Tax Board - you can contact them to complain, but I don' think ultimately it will have any affect on their status.

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