Nonprofit Law/Sale of property

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Question
I am a member of a club that was not for profit under 501c.7. Due to apathy we have lost our status. My question is can we sell our property or do we have to sell to another nor for profit organization? The property is in New York

Answer
Is your club incorporated as a New York Not-for-Profit Corporation?  In any case, I would need to see the articles of incorporation (or articles of organization) and bylaws to see if there is anything relevant.

The IRS has no problem with a c7 selling its assets to a for-profit entity. http://www.irs.gov/irm/part7/irm_07-025-007.html

However, if yours is a New York Not-for-Profit Corporation, let me know and, after you give me that information I will reply further as to the state law.

Harvey Mechanic, Attorney at Law -
Harvey108@hotmail.com
Member of New York Bar

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

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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 Harvey108@hotmail.com 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 "site:allexperts.com/q/nonprofit" without the quotes and then add your search terms before hitting enter.

Experience

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.

Education/Credentials

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

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


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