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Nonprofit Law/Possible corrupt nonprofit


Good evening ,thank you for this service .I am a parent involved in a inner city mini football /cheer organization .In the past few years our cheer team has grown and has become a very respected competitive team ..which has increased our expenses .We have raised a huge amount of money with 95 percent compliance of all cheer parents .Unfortunatly the organization is run by the football parents who are not involved .At a recent meeting cheer parents asked to see the fianancial report ,only to find out all of the money we raised was missing ,and the club was being run by an absent treasurer for about 8 months .My question is ..Is there a way to freeze the funds during an audit and ultimately seperate football from cheer to prevent firthur questions .At the meeting we had no voice because we are not on the board and the treasurer is very unavailable .The president and executive chair person make all decisions and said no .the amout questioned is 10k

Unless the articles of incorporation or bylaws or other contract provides the cheer parents with certain rights, they do not have a right to certain funds, which are controlled by the organization.  I suggest that, in the future, the cheer parents form a separate 501(c)(3) organization.

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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