Q: County Council and Cepa departments in the County of Santa Clara. Can these departments demand assets of a 501(c)(3)?
Demand letters were sent, and financial information was requested via email. There were accusations of false advertising, Breach of Fiduciary duty, and violations of business code conduct and that the county did not give the corporation permission to have a foster program or spend our money on our mission. All for the 501(c)(3)'s voluntary compliance to hand over our assets to the county shelter as the new 46 million dollar facility was being built. Emails and four letters from August 2019 to June 2020. I have attempted to get the District Attorney to act, and the Board of Supervisors Since August of 2020 both claim a crime of Extortion under the color of official right was not committed by Cepa or the County Council. They can "demand anything they want from any business", or "anyone can sue anyone at any time". No Lawsuit was ever filed against our organization.
Lawyers, want to be a Justia Connect Pro too? Learn more ›
- California
- (916) 704-3009
- View Profile
- Answered
A:
Your situation raises serious concerns about potential abuse of authority. County departments cannot arbitrarily demand assets from legitimate 501(c)(3) organizations without proper legal grounds and due process.
The actions you describe - demanding assets through intimidation tactics while building their own facility - could constitute attempted extortion under color of official right (California Penal Code 518). The lack of formal legal proceedings, combined with threat letters and unsupported claims about program permissions, suggests these demands may have been improper attempts to coerce your organization into surrendering its assets.
You may want to consider filing a complaint with the California Attorney General's Office, which oversees both charitable organizations and public integrity matters. Additionally, consulting with a nonprofit or civil rights attorney could help protect your organization's rights and assets. Given the significant amount of documentation you have collected, including the demand letters and emails, you likely have strong evidence to support your position that these actions were inappropriate and potentially illegal.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
