Archive for 20 February, 2009
Charities Now Seek Bankruptcy Protection
February 20, 2009 7:53 am 
The director of a bankrupt charity in Los Angeles, Teresa DeCrescenzo, may also lose her house.
In the past insolvent organizations have simply closed their doors and filed a plan of dissolution with the charity regulator in their state. In today’s messed up economic picture that is changing.
“In the last six months, nonprofit groups that include cultural institutions and social service agencies have filed to reorganize or liquidate themselves under the bankruptcy code.”
“While no one has compiled data on how many charities have turned to the courts for protection, experts in the field say it has become more common as nonprofits have been pressured by donors to operate more like businesses.”
