Nonprofit Law/Church gifts

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Question
So I was given a gift card by a church but was told that I could only use it on shoes because apparently it is illegal in the state of Oregon to use gifted money from a church on something other than what it was meant for.

Is that true?

Answer
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. Your question is about state law of Oregon.

Even though this forum is not for such state law issues, I may be able to direct you.  Try calling the State's Attorney General's Office Charities Division at (971) 673-1880.  I suspect that there is no specific state law addressing your issue, but that it is simply an issue of contract.   Generally, donors give up any authority over donated items and funds, unless they had a specific signed agreement with the donee (you)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". A case that discusses the issues is at: http://goo.gl/YQB5s
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 (like the church) which has made a completed charitable gift 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 donee (you) breached the agreement.

Harvey Mechanic
Attorney at Law
Harvey108@hotmail.com

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

Expertise

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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