Sunday, December 2, 2007

How Do Charities Get Divorced? They "Split" Their Assets

On December 1, 2007, the New York Times reported that that the IRS has cleared the way for two charities involved in a long-running disagreement over assets and location to settle their dispute by splitting their assets.  Under the agreement, the Maddox Foundation of Mississippi will transfer $54 million to the Dan and Margaret Maddox Charitable Trust of Tennessee.  After the transfer, the two charities can go their separate ways.  The legal dispute arose when

Tennessee went to court in an effort to bring the foundation's assets back to the state after its directors moved it to Mississippi without seeking court approval. It argued that Dan Maddox, who left more than $100 million when he and his wife died in a freakish boating accident in 1998, had little connection to Mississippi and had intended that the bulk of the money be used for charities in Tennessee.

For the full story, see "In Settlement, Charity Will Split Its Assets" in the December 1, 2007, New York Times.

DAB

http://lawprofessors.typepad.com/nonprofit/2007/12/how-do-charitie.html

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