Legal Question in Tax Law in New York

not for profit board of directors

A board member of a not for profit dance organization, who is also the owner of a for profit dance studio, may be using NFP funds to hire instructors from her for profit company. The mission of the NFP is to provide schools with free dance instruction. Is this legal?


Asked on 5/21/07, 3:19 pm

1 Answer from Attorneys
Norman Nadel Norman Nadel, Esq.

Re: not for profit board of directors

Any diversion of funds from a not for profit organization (that is, which are used for purposes other than that of the not-for-profit organization) is prohibited.

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Answered on 5/21/07, 3:28 pm


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