Must a public charity spend a minimum amount of funds it raises in a particular year?
A. There is no requirement that a public charity spend the funds in the year in which they were raised so long as the public charity made no representations in its fundraising materials and the like that it would do so. It should be noted that a public charity is required to use the funds for the purposes it indicated it would be using them for in all of its solicitations. For example, a public charity that raises funds for a particular natural disaster may not divert funds for future disasters.
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- Must a public charity spend a minimum amount of funds it raises in a particular year?