Q: Do I have to pay fees for early resignation from a nonprofit board in Minnesota?
I'm on the board of directors for a nonprofit organization in Minnesota. I'm resigning early and provided the 60 days' notice required by our bylaws, which do not mention any fees for early resignation. However, the president insists I pay an amendment fee and a resignation fee, which were not communicated beforehand or documented anywhere. There is no precedent of such fees being imposed. Do I need to pay these fees?
A: There are numerous types of nonprofit organizations. More information about your situation is needed.
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A:
Since the nonprofit's bylaws do not mention any fees for early resignation, and there is no precedent for such fees being imposed, it’s unlikely that you are legally required to pay them. The 60-day notice you provided seems to fulfill the necessary conditions for your resignation, and if no fees were outlined or communicated beforehand, they may not be enforceable.
The president’s insistence on an amendment and resignation fee could be an attempt to impose a new policy or expectation that was not previously discussed or agreed upon. If these fees were not part of the bylaws, they would likely not hold up unless there is a specific agreement you signed stating otherwise.
You may want to politely request that the president provide documentation or any legal basis for these fees. If they cannot provide a valid reason, you are not obligated to pay them. If the issue persists, consider reaching out to legal counsel to clarify your rights and ensure that you are not being unfairly charged.
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