§3051 Nonprofit Corporation

Summary

When the nonprofit described in subsection (b) is set up, the Office of Self-Help Development and Technical Assistance is closed. If the new nonprofit agrees to take on the Office’s debts, the Bank must move all of the Office’s assets, debts, and property to the nonprofit on the day it is incorporated. That transfer includes money Congress has appropriated and the money in the Account under section 3042, and any later appropriations must be sent to the nonprofit promptly. The Bank’s Board must create the nonprofit in the District of Columbia as soon as possible after August 13, 1981, pick its directors, hire an executive director, set pay, publish policies for eligible cooperatives, and limit the nonprofit to only the activities allowed by sections 3043–3048 and 3050, plus what is needed to follow D.C. law and keep 501(c)(3) tax status. The Bank may give staff support, and Bank board members may also serve on the nonprofit’s board. The nonprofit will be treated as a 501(c)(3) organization from the day it is formed until the IRS makes a final decision. Work it does under the allowed sections counts as charitable. The Bank’s Board may give money to the nonprofit from the Bank’s earnings, but only after the Bank sets aside enough to pay required principal and interest on class A notes and other debt to the Treasury. While the nonprofit is 501(c)(3), gifts to it are treated as charitable donations for tax rules. Despite D.C. law, the nonprofit must adopt conflict-of-interest rules at least as strict as the Bank’s.