How Can I Find Out How Donations Were Used By a Company?
Full Question:
This concerms financial reporting requirements for an Established Foundation that is registered in California and would be set up, say for example, suicide prevention whereby the foundations, for example, takes in $30,000 in donations during the first year of activity. My question is, 'How does an individual gain access to CA State and/or Federal documents required for accounts filings related to how the the foundation utilized the $30,000 donation money, its distribution, its accountability and how it was reported? In other words I want to determine if the $30,000 donation money was used properly for its intended purpose according to the this type of registered foundation laws, or if there were misappropriation of these funds?
11/24/2010 |
Category: Corporations ยป NonProfit Co... |
State: California |
#23702
Answer:
The answer will depend on the relation of the person or entity to the foundation and the basis of the claim. For example, a person who is an officer or shareholder may have a right to inspect the records. A person with ”standing” (a stake in the outcome) may petition for an accounting if a breach of a fiduciary duty or theft is involved. If a civil lawsuit were to be filed, such as a fraud claim, it is possible that relevant corporate records could be sought in the discovery process, such as a request for production or interrogatories.