Can a not-for-profit corporation trade assets of equal value with another organization?
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Can a not-for-profit corporation trade assets of equal value with another organization?
We have a NFP and own 2 separate parcels of land. We were approached by an individual interested in one of the parcels (parcel A). He has property that is located congruently with our other parcel (parcel B). He is interested in swapping his property for parcel A. The value of parcel A and his properties are equal and the exchange would benefit us both. Can this be legally done?
Asked on October 20, 2011 under Business Law, New York
Answers:
Michael D. Siegel / Siegel & Siegel, P.C.
Answered 12 years ago | Contributor
This is more complicated than you might think. As the NFP is "selling" its main asset, getting title insurance will require a court application. You will want insurance, as that is what makes the title good and marketable. The Attorney General needs to approve this transaction. This is simple if you know what you are doing. I just finished one of these, and can assist.
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