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Nonprofit Law/NYS not for profit sale of real estate


I belong to a small not for profit sportsman club.  The club owns a parcel of real estate in upstate New York that we would like to sell.  This real estate represents substantially all of the club's assets.  Can the proceeds of the sale be kept in the clubs bank account and used for club purposes?  Thanks.

If your club is incorporated under the New York Not-for-Profit Corporation (NPC) law then such a sale, according to section 509 of NPC law requires 2/3 approval.
Also see section 510 for some details.

That section requires:
--- Start of excerpt ---
If the corporation is, or would be if formed under  this  chapter,
 classified  as  a  Type  B  or  Type  C  corporation  under section 201,
 (Purposes) such sale, lease, exchange  or  other  disposition  shall  in
 addition  require leave of the supreme court in the judicial district or
 of the county court of the county  in  which  the  corporation  has  its
 office  or principal place of carrying out the purposes for which it was
--- End of excerpt ---

I have in my profile in my forum at the free service that I offer is only for general questions. If your organization wants me to help with the paperwork, that is beyond my offer of free services and I would need to spend a substantial amount of time.  If you want to hire me, send me an email directly to my email address below and I will quote you my fees.

Harvey Mechanic
Attorney at Law
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


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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