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Can a nonprofit spend donations however it chooses?

April 26, 2017chooses DONATIONS nonprofit spend

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Can a nonprofit spend donations however it chooses?

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No. A nonprofit can only use funds derived from tax-exempt donations to accomplish the charitable purposes stated in the nonprofit’s articles and bylaws. If a donor gives money for a specific purpose, a nonprofit cannot use those funds for a different purpose unless: (a) the nonprofit receives permission from the donor; or (b) the nonprofit files a lawsuit seeking permission from a court and notifies the Texas Attorney General of the suit.