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Nonprofit Law/Refund on start-up funds?


I agreed to pay half of the filling fees for a newly start up coalition of Armed Forces associations the money was to be use for the 501c filling fee.  I wrote a check for $425.00, half of the fee.  The coalition has not filled the forms yet.  I since resigned from the coalition due to s disagreement with one of the members based on lack of commitment to promises made.  There was no funds ever paid to house veterans without homes at a local hotel, fee was $14.00 per plus breakfast for the vets and family.  The hotel end up loose money and I tried to help by having the coalition pay the hotel what the vets owed, total of $4500. 00.  We could have accomplished and saved the program.  Now I resigned from the coalition due the negative, arrogant remarks made to me by a member of the coalition, can I ask for a refund on the money?

You may certainly ask for a refund.  But, generally, donors give up any authority over donated items and funds, unless they had a specific signed agreement with the nonprofit with a reverter clause or at least a letter indicating the conditional nature of the gift.

This an issue called "enforceability of a restricted gift to a
nonprofit organization"

A case that discusses the issues is at:
starting in the middle of the first column.

Although that was a Connecticut case, most states would have
similar treatment.  In other words, a donor who has made a
completed charitable gift to a nonprofit organization does not even
have standing in a court to bring an action to enforce the terms of
that gift unless the gift instrument contained an express
reservation of control over the disposition of the gift, such as a
right of reverter or a right to redirect. A right of reverter means
that the donation would be refunded if the charity breached the

Harvey Mechanic, Attorney at Law -

P.S. This response is intended to be a general statement of law, should not be relied upon as legal advice and does not create an attorney/client relationship.  

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Harvey Mechanic


DO NOT GIVE ME INFORMATION THAT YOU WANT KEPT CONFIDENTIAL. I am an attorney and I volunteer time to answer general questions about U.S. Federal income tax issues of nonprofit 501(c)(3) public charities only. Those questions could be about establishing and maintaining legal requirements for such non-profit organizations in the United States, including Internal Revenue service filings and requirements. I will not be working on this free forum to answer questions about Nonprofit's possible unrelated or for-profit businesses or how to fill out forms. This forum is only for general questions about federal tax law, not as the law applies to your specific situation. If you do not make your question public then I will not be spending much of my donated time on answers that would not benefit the public. If you have other questions, please contact me at I will reply from my email. In any case, do not reveal confidential information to me until after I have contracted with you to provide personal legal services. My responses on this forum are intended to be general statements of law, should not be relied upon as legal advice, and do not create an attorney/client relationship. For me to consider your individual situation and how the law applies, I would need to gather extensive information about the situation. To search my previous answers you can do a Google search by "" without the quotes and then add your search terms before hitting enter.


I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar and I have maintained my status with the Bar since that time.


B.S. Columbia University in New York City, 1970

J.D. (Law Degree) Brooklyn Law School, 1990 -- Cum Laude.

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