Legal Question in Business Law in Florida
Improvements to home for benefit of nonprofit organization
I am the founder/president of a 501(c)(3) nonprofit organization. I would like to make improvements to my home for the sole benefit of the nonprofit. A) Is this legal? B) Can donated funds be used for the improvements? C) If I can do this, does there need to be some type of lease agreement for the improved space between myself as the homeowner and the organization?
Thank you!
2 Answers from Attorneys
Re: Improvements to home for benefit of nonprofit organization
There is a lot of litigation these days regarding non-profits. What you describe probably would not be advisable. We have an attorney who can explain your options with a non-profit. dwnancellc.com and nancegroup.com
Re: Improvements to home for benefit of nonprofit organization
NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.
You can do anything you like. Most likely, your intended improvements to your home will never pass muster by the IRS. You have given very little information but based on what you said, this certainly will raise a red flag at the IRS and may cause an audit of all of your tax records.
Scott R. Jay, Esq.
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