Courtney Lynch Quoted in Story About Indiana Church’s Nonprofit Housing Program
Courtney Lynch, an Indianapolis-based Quarles & Brady Business Law partner who focuses on nonprofits, was quoted in a story by an Indiana TV station about a local church that tore down a house it once planned to donate to one of its ministry clients.
The story by WANE-15 in Fort Wayne, Ind., delved into the specifics of the church’s program that was designed to provide housing to teens who were aging out of the foster care system, as well as the church’s financial challenges that may have impacted its ability to continue the housing program.
At one point, the church made a quitclaim deed transfer of its property to a real estate company owned by the church’s pastor. Lynch explained why this move by a nonprofit could draw attention. An excerpt:
Pastor Wallace said both the congregation and FaMBET residents were informed about the church’s financial situation and the resulting decisions.
WANE 15 reached out to a lawyer with no connection to the ministry.
Courtney Lynch, a partner with a special focus on non-profit organizations in her practice at the Quarles law firm in Indianapolis, said a quitclaim transfer from a 501(c)3 group to one of its officers is not common but can be done legally.
“That would be scrutinized for a conflict of interest,” she told 15 Finds Out. “If there is going to be a transfer where an officer is involved, it needs to be voted on by those officers who are not involved.
“There are lots of things to consider.”