Our community theatre doesn't so summer shows. Up until a few years ago some guy in the community put up his own musical in the summer mainly for kids to be in since the regular community theatre doesn't do a lot of kid shows. Well he stopped doing it and two members from our board took it upon themselves to put up a summer show themselves to fill that void.

Two years ago they put up a production of Footloose and it did decent. Last year they wanted to tey again and they chose High School Musical and they went to the board of directors and made a proposal. Basically to front them the startup money (to be paid back) and to be able to operate under thier 501(c)3 so they can get cheaper theatre rental. The proposal was passed, HSM went up, was a huge success and made all of it's money back and a $7400 profit.

They went to the board and offered them a percentage as a thank you for fronting the cash and the board denied it and said it was their money.

Flash forward nearly a year and they're putting up Fame. Now the community theatre just had a terrible season. They lost a lot of money. the board of directors is now trying to pass a resolution saying that the summer theatre's $7400 profit belongs to them and it always has. They're dictating how much Fame's budget is and aren't giving them a lot. Like $2000 after royalties are paid.

I know legally nothing can be done, morally and ethically I think it's bankrupt though. Hindsight being 20/20, the summer group should have registered for their own 501(c)3 and pulled their cash out a long time ago.

So what are your thoughts?

Originally posted by tonyboling They went to the board and offered them a percentage as a thank you for fronting the cash and the board denied it and said it was their money.

Are you saying that the board refused to give back the $7400 originally claiming it was their money?

If the board put up the money to stage the show, and the show was staged by board members under the auspices of the board's 501(c)3, and the proceeds wound up in the board's hands (if I'm understanding the original post) it might be hard to make the case that the money belongs to anyone else unless there is something specific in writing. And though I'm way far from an expert, I agree with Joe that there might be legal questions about a non-profit turning that money over to a person or entity under these circumstances.

what a great way to close a CT. Lack of community support, greed, irresponsible leadership on top of a bad season. Sounds like it's time to replace the board.