Founder Can’t Recover Start-up Loan to Nonprofit
Court says recognition of loan on Form 990 does not confirm that Board agreed to repay
The founder of a Wyoming public radio station cannot collect on a $219,000 start-up loan he said he made to the organization, even though the loan was regularly recognized on the nonprofit’s annual Form 990 tax filing, the Supreme Court of Wyoming has affirmed. The Court said that the loan was not sufficiently memorialized in writing and was unenforceable under the state’s statute of frauds.
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