Contract For a Non-Profit Organization

[grey_foxx9]

What is the name of your state (only U.S. law)? Montana State

Hi,
I have a question about a contract dealing with a Non-Profit Organization. My family has a house being built and they are thinking about starting a non-profit organization and eventually a charitable organization. The house is being transferred to the corporation and will be used for such purposes.

My parents do not want to be removed from the house in the case that the board does not think that their efforts are sufficient for the organization. I understand that the property can be removed and given to another organization or the state if the organization as a whole fails. However they want a clause or statement in the contract stating that they cannot be removed unless the organization as a whole fails. Is this possible? and how does a severability (savings) clause effect this agreement?

The contract states that no one can claim severability whatsoever and that this contract shall be held as a whole and not be seperated. Im still trying to figure out what this means.

Any help and/or advice will be greatly appreciated!

Thanks!

 

[FlyingRon]

You can deed it with a life estate or whatever, but you are well advised to get a lawyer to figure this out rather than relying on free advice.

Generally, when you give property away you don't get strings on it without a great deal of effort. If you have a corporation an you are voted out, you lose. Just because you are a founder means squat in the long term.

 

[grey_foxx9]

Yea the only problem with getting a lawyer is that we don't have the money quite yet. So how are you starting the organization? Well we have many donations and such but we do not have access to these funds quite yet because well we're not exactly a non-profit (the paperwork is all ready to go in we're just convening here and there on the contract between the corporation and my family)

The Funds for the organization are for start-up costs and such. We already have a building donated to us and its quite new and very nice.

Anyhow the contract must be signed and agreed upon b4 we move into this building and thats within a month most likely.

Believe me if i could contact a lawyer right now to come down to our meetings Id do it in a second. However i'm spending hours and hours researching terms and such . (I'm actually studying non-profit management and accounting in school.)

This life estate statute. Ive heard of it before. Could that actually be legal? Or is that just something that only holds up in a contract. Such as: is there paperwork that has to be filled out or is it just a term that could be followed. How would a sever-ability clause save or break this type of statute?

My parents are very good at what they do and I know that they wouldn't let anyone down. However i know that doesnt give them complete immunity from being removed. Perhaps there could be a term where they cannot be removed unless certain reasons apply. Such as dissolution or fraud etc. I wish i knew the full terminology. I shouldve taken law in school!

Also the corporation uses terms so loosely with us. Its quite hard to understand whats being said at times.

We just don't want to be "screwed over" for lack of a more proper term.

Anyhow thanks for your help its been useful