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To Sue or Not to Sue Over Unpaid Pledges? | Michael Rosen Says…: To Sue or Not to Sue Over Unpaid Pledges?
Sometimes, nonprofit organizations sue philanthropists over unpaid pledges. This was recently the case with the Kansas City Art Institute. When a charity pursues this type of legal action, it sends shockwaves throughout the nonprofit and philanthropic sectors.
I do believe there are times when a nonprofit can and should sue a donor. However, this should only be done as an absolute last resort. The three instances when a lawsuit might be acceptable are:
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