Business Contracts Non-profit liability concern

[Gaia87]

I am an officer in a not-for-profit company (501c3 NYS). A peer organization has reached out to us about a potential collaborative fundraiser. The main issue here is that they do not have tax-exempt status and are using our designation in order to secure the location of the event at a heavily discounted rate. We will negotiate a split of the proceedings from the event.

What liability issues are at stake here?

Our concern is that the use of our 501c3 status to secure event would make us appear to be the sole benefitting org, and as such, would make us primarily liable given any issues.

What type of contractual language is needed to protect ourselves here?

Should there be a clause absolving our liability since the peer org will be organizing/running the event?

What if any disclosures need to be made to potential donors and/or the venue regarding the tax-exempt status of both parties and deductibility of contributions?

Thank you.

 

[army judge]

You might want to consult your corporate counsel, hire an attorney, and NOT risk your IRS status by seeking information from strangers.

If I were you, I'd simply say, "Sorry, but we're in no position to assist you. We wish you well in YOUR fund raising efforts."

 

[Gaia87]

Aren't others on this board seeking free legal advice here? I'm obviously not going to base my decision on what some stranger says on a message board, I was simply seeing if there was serious cause for concern here and if we should consult counsel, handle ourselves, or steer clear of the situation altogether.

Your response leads me to believe the latter.