Legal Question in Business Law in Texas
My question deals with a 501c3 and how to handle a Board member's retirement from the organization.
This 501c3 is an animal rescue organization and the Board member served as the group's primary foster home (meaning she took animals into her home and cared for them there) and transporter. The organization paid for necessities for the animals like food, vetting, kennels, etc., but it also footed the bill for a vehicle (which served as the Board member's primary source of transportation), as well as computers, and many other items that had even the slightest tie to rescue.
My question is this - now that she's retiring, is there any legal obligation for her to purchase these items from the organization since they were purchased by the organization for rescue purposes?
Thanks in advance for your time and assistance.
1 Answer from Attorneys
Dear Animal Enthusiast
Since the 501(c)(3) paid for the items, the items belong to the company and should either be returned to the company or purchased by the retiring board member. This is assuming of course that these items were not given to the retiring board member as a form of compensation and that the items with title, such as the vehicle, were not titled in the retiring board member's name. If the company placed title in the retiring board member's name, you have a problem that cannot be resolve through emailed correspondence. You will need to get a lawyer to review the matter. Direct Answer: there is no legal obligation for her to purchase the items but there may be a legal obligation for her to return the items.
TDW
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