What is the name of your state? Maryland
I am a member of a voluntary organization which is not-for-profit. We have a charter which states the procedures for the organization but we file no taxes and are not incorporated in any particular legal way. (I'd imagine we'd qualify as a general partnership. We have elected leaders/board members from within the membership.)
To secure a location for an event, one of the board members of the organization put the location fees on his credit card. The event did not do as well as expected and did not recoup enough money to pay off the location fees. The organization does not have enough money to repay the money out of its own funds.
Our charter requires a vote from the membership to disburse an amount such as the one for the location fee. There is some doubt about whether the proper procedure was followed (as well as whether the amount and purpose was clear). If the organization believes that the money was not properly approved by the members and does not make restitution, will the credit card holder be able to sue the organization for the money?
1) Where does the liability for that location fee lie?
2) Can the holder of the credit card sue the other board members at the time for the amount? Can he sue for the amount including interest?
3) Can he sue the current board members for the amount?
4) Can he sue the regular members for the amount?
I am considering stepping up to board level to attempt to fix some of the monetary issues with the organization, but I am concerned that I may be taking on the debt of the organization this way.
5) If the organization becomes limited liability at this point, will the prior debt come under limited liability or will it continue under general partnership laws? Thank you.
I am a member of a voluntary organization which is not-for-profit. We have a charter which states the procedures for the organization but we file no taxes and are not incorporated in any particular legal way. (I'd imagine we'd qualify as a general partnership. We have elected leaders/board members from within the membership.)
To secure a location for an event, one of the board members of the organization put the location fees on his credit card. The event did not do as well as expected and did not recoup enough money to pay off the location fees. The organization does not have enough money to repay the money out of its own funds.
Our charter requires a vote from the membership to disburse an amount such as the one for the location fee. There is some doubt about whether the proper procedure was followed (as well as whether the amount and purpose was clear). If the organization believes that the money was not properly approved by the members and does not make restitution, will the credit card holder be able to sue the organization for the money?
1) Where does the liability for that location fee lie?
2) Can the holder of the credit card sue the other board members at the time for the amount? Can he sue for the amount including interest?
3) Can he sue the current board members for the amount?
4) Can he sue the regular members for the amount?
I am considering stepping up to board level to attempt to fix some of the monetary issues with the organization, but I am concerned that I may be taking on the debt of the organization this way.
5) If the organization becomes limited liability at this point, will the prior debt come under limited liability or will it continue under general partnership laws? Thank you.