Can a not-for-profit corporation trade assets of equal value with another organization?

UPDATED: Oct 20, 2011

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Can a not-for-profit corporation trade assets of equal value with another organization?

We have a NFP and own 2 separate parcels of land. We were approached by an individual interested in one of the parcels (parcel A). He has property that is located congruently with our other parcel (parcel B). He is interested in swapping his property for parcel A. The value of parcel A and his properties are equal and the exchange would benefit us both. Can this be legally done?

Asked on October 20, 2011 under Business Law, New York


Michael D. Siegel / Siegel & Siegel, P.C.

Answered 11 years ago | Contributor

This is more complicated than you might think.  As the NFP is "selling" its main asset, getting title insurance will require a court application.  You will want insurance, as that is what makes the title good and marketable.  The Attorney General needs to approve this transaction.  This is simple if you know what you are doing.  I just finished one of these, and can assist.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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