In a April 6, 2018 story in Valley News in New Hampshire, professor Nancy McLaughlin was quoted on the NewVistas Foundation transfer of 1,800 acres of land near the birthplace of Mormon prophet Joseph Smith.
McLaughlin, who said she was aware of the NewVistas case but was not speaking to its particulars, said a nonprofit registered in Utah may apply for and not receive federal tax-exempt status, “but that does not make the organization any less charitable in the eyes of the state.”
As a general matter, when a nonprofit misuses funds, it risks the public trust, McLaughlin said.
“The whole integrity of the charitable sector is at risk if charities are transferring assets to private individuals or private entities,” she said. “Our charitable sector is built on public trust, and that trust is violated when a charity transfers assets into private hands.”