We are a 501 non for profit. A family asked us to pay for a funeral for a terminally ill member who will sadly soon pass away. Are we allowed ($10,000 ) , or is it an inurement, and prohibited? Thank you Star1441
NON FOR PROFIT--- ALLOWED OR AN INUREMENT?
That depends on a lot of things. The first thing and biggest thing to know though is what is the 501 organized for? Would providing for funeral costs be consistent with the vision and purpose of the organization? For example, if you were a church and providing burial for a church member that usually is well within the purview of what a church does. Though that does depend upon the bylaws.
On other hand, say if it is a 501 organized as a snowmobile club. The purpose of which is maintenance of public snowmobile trails and snowmobiling contests. Does providing for funeral costs fall within the vision of the 501? I would say not, and to use it to pay for a member's funerals costs could be considered an inurement.