NHRA Decisions

Dan Bennett · 01-28-2023, 01:42 PM

Disbanding a nonprofit is fairly complicated and is very different from a company closing.

I saw it first hand in my small town. In the 1950s, a group of businessmen and civic groups started a fund drive to build a hospital. Of course, this was pre-interstate, so the nearest big city hospital was an hour or more away. They wanted to change that.

They managed to fund a 10 bed facility. By 2000 or so it had grown to 200. But, it WAS a new century where everything was based on whales devouring minnows. A very large chain made an offer to buy them out, and the local board knew that times had changed and they wouldn't be able to compete for doctors, supply prices, etc. against the giants.

Lots of negotiations, but the bottom line is that a foundation was established and funded with 6 million which was invested. Quarterly, they make grants to organizations who help people - food banks, free clinics, schools, etc. They give out about a 750k a year and have yet to touch the principal and it's been maybe 7 or 8 years.

So this is what happened with a 501 company here, but I see no way to apply that to the NHRA. If the board moved from their line-their-pockets thinking and did such a thing, the only way it could help racers would be if the grants were paid to a new association actually controlled by the people who join it.

Imagine that happening.

01-28-2023, 01:42 PM	#13
Dan Bennett Member Join Date: Jun 2007 Posts: 439 Likes: 852 Liked 595 Times in 136 Posts	Re: NHRA Decisions Disbanding a nonprofit is fairly complicated and is very different from a company closing. I saw it first hand in my small town. In the 1950s, a group of businessmen and civic groups started a fund drive to build a hospital. Of course, this was pre-interstate, so the nearest big city hospital was an hour or more away. They wanted to change that. They managed to fund a 10 bed facility. By 2000 or so it had grown to 200. But, it WAS a new century where everything was based on whales devouring minnows. A very large chain made an offer to buy them out, and the local board knew that times had changed and they wouldn't be able to compete for doctors, supply prices, etc. against the giants. Lots of negotiations, but the bottom line is that a foundation was established and funded with 6 million which was invested. Quarterly, they make grants to organizations who help people - food banks, free clinics, schools, etc. They give out about a 750k a year and have yet to touch the principal and it's been maybe 7 or 8 years. So this is what happened with a 501 company here, but I see no way to apply that to the NHRA. If the board moved from their line-their-pockets thinking and did such a thing, the only way it could help racers would be if the grants were paid to a new association actually controlled by the people who join it. Imagine that happening.