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Chapter 11 related question


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As most of you know, the BSA owns over 144,000 acres in the Sanger de Cristo Mountains called Philmont Scout Ranch after the donor, Waite Philips.  You might know that there was a bad fire in the middle of the ranch a few years ago.  
 

Now, there are other fires in New Mexico that are threatening and have damaged Philmont.  As I have kept abreast of the developments, the damage has thus far not been extensive.   
 

When I check on the fires, there is a place to donate but there is these statements:

Quote

During this time of financial restructuring, we are not permitted to accept donations from the following states: California, District of Columbia, Illinois, Kansas, Mississippi, New Jersey, North Carolina, Pennsylvania, Puerto Rico, Tennessee, Virgin Islands or Wisconsin.

Can any of our more knowledgeable forum members provide some enlightenment as to why this is the case?

Thank you in advance!

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17 minutes ago, vol_scouter said:

When I check on the fires, there is a place to donate but there is these statements:

Quote

During this time of financial restructuring, we are not permitted to accept donations from the following states: California, District of Columbia, Illinois, Kansas, Mississippi, New Jersey, North Carolina, Pennsylvania, Puerto Rico, Tennessee, Virgin Islands or Wisconsin.

Can any of our more knowledgeable forum members provide some enlightenment as to why this is the case?

 

From whence cometh this excerpt? 

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@ThenNow  Sorry, in my screwy mind, it was clear where the quote lay but no one else would be able to read my mind, especially from a distance! 😂  I should have provided the reference.

This excerpt is from a webpage accessed first going to Home - Philmont Scout Ranch High Adventure- Cimarron NM (philmontscoutranch.org) and clicking in the red box near the top of the page to go to https://www.philmontscoutranch.org/cooks-peak-fire-update wherein the quote lies.  

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So...we have an organization in dire financial straits...that is prohibited from accepting donations?

'The law, in its majestic equality, forbids the rich as well as the poor to sleep under bridges, to beg in the streets, and to steal bread." --Anatole France

"My cup runneth over with love-of-the-law." --Me

Common sense may not yet be dead, but it is in a coma and on life support. I met with the family yesterday, Truth, Decency, and Reason, and expressed my concern. They are hopeful, but also resigned. (Part of this paragraph sort of a paraphrase from an article I found on the web.)

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3 hours ago, SiouxRanger said:

So...we have an organization in dire financial straits...that is prohibited from accepting donations?

Is it a money handling law that the money would never reach Philmont?   First has to go thru bankruptcy court?  

Or is it a truth in advertising law to prevent fraud by misleading donors giving money to a bankrupt non-profit?  ... i.e. if you are in bankruptcy proceedings, you should not pretend that business will continue.  That's fraud or not fully truthful.

 

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On 5/14/2022 at 8:50 AM, fred8033 said:

Is it a money handling law that the money would never reach Philmont?   First has to go thru bankruptcy court?  

Or is it a truth in advertising law to prevent fraud by misleading donors giving money to a bankrupt non-profit?  ... i.e. if you are in bankruptcy proceedings, you should not pretend that business will continue.  That's fraud or not fully truthful.

 

Well, I just don't know.  It is a puzzle.

National has a Federal Charter, and only a couple of organizations are chartered Federally.  I think that means that it need not incorporate in some state and then qualify to do business in the other 49 states annually.

I don't know if it is a Federally chartered not-for-profit, but I suspect so..

And I also don't know if there is a Federal Not-For-Profit statute which regulates its operations.  States have not-for-profit corporation statutes.

Normally, when the Federal Government enacts a law within its Constitutional authority, it pre-empts state laws on the same matter. That is, state laws that are pre-empted are no longer valid.

Bankruptcy law, for example, has pre-empted state law, so there is only Federal bankruptcy law. National, being in bankruptcy, one would think that bankruptcy law would control on all matters and pre-empt state law on all matters touching on finances.

That all being rather uncertain, it gets us to the conundrum:  National clearly believes that it is prohibited from accepting donations from residents of specific states.

My best guess, being only that, is that some states have laws restricting not-for-profits from accepting donations if in bankruptcy. Such a law would probably avoid the pre-emption doctrine, unless the Bankruptcy law permitted not-for-profits to accept donations and then I think National could accept donations from residents of every state.

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