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Amanda Reiss and Jared Faulkner formed a nonprofit unincorporated association to provide after-school programs in opportunity zones. They hired four counselor/teachers to run the program.

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Amanda Reiss and Jared Faulkner formed a nonprofit unincorporated association to provide after-school programs in opportunity zones. They hired four counselor/teachers to run the program. They were able to use two school facilities without charge but agreed to pay the counselor/teachers $40 per hour for three hours, five days per week. By the end of the school fall semester, the counselor/teachers had only been paid for two months of work. The nonprofit had no funds remaining. Which of the following is correct about their ability to collect their wages? The schools would probably be liable through apparent authority. Because it was a nonprofit, unincorporated association, there really is nothing to collect from. If Amanda and Jared signed agreements to pay, they could be held liable. The 501(c)(3) status prohibits this type of compensation

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