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Florida Legislature Passes Bill to Protect Charities
From Clawbacks |
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On April 25, 2013, the Florida Legislature gave final
approval to a bill intended to protect charities
when they receive donations that are later found
to have come from fraudulent activity. The bill
(HB 95) was passed by the House 114-0 in March
and by the Senate 35-2 on Thursday. The bill now
goes to Governor Rick Scott.
The bill
protects charities from being forced to give
back donations that they have accepted in good
faith and have spent or allocated for charitable
purposes - but that years later are the subject
of a "clawback" because the funds were later
found to have been gained through a fraudulent
transaction on the part of the donor. The bill
exempts contributions to charities from clawback
efforts if the donations were made more than two
years before any legal action started.
The
bill would protect charities like Girls
Incorporated of Sarasota County. A
court-appointed receiver filed a lawsuit against
Girls Inc. to recoup $360,000 that the charity
received from the Guy-Nadel Foundation, going
back to 2004, plus $90,000 interest - nearly
half of the group's annual budget - because all
of the foundation's funds came from a Ponzi
scheme.
Support for the bill has been led
by the
Florida Nonprofit Alliance. FPN has supported this
bill since it was first introduced in the 2012
legislative session, and will be writing a
letter to Governor Scott to urge him to sign the
bill into law. |
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More Information |
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If you have any questions about this or other public policy or legislative issues, contact FPN
President & CEO David Biemesderfer at 813-983-7396,
dave@fpnetwork.org. |
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