Question

The AB Memorial Foundation, Inc. was incorporated as a non-profit, non-stock corporation in order to establish and maintain a library and museum in honor of the deceased parents of the incorporators. Its Articles of Incorporation provide for a board of trustees composed of the 5 incorporators, which is authorized to admit new members. The Articles of Incorporation also allow the Foundation to receive donations from members. As of January 30, 1993, 60 members had been admitted by the board of trustees. (1993 BAR)
(a) Can the Foundation use the funds donated to it by its members for the purchase of food and medicine for distribution to the victims of the Pinatubo eruption?
(b) Can the Foundation operate a specialty restaurant that caters to the general public in order to augment its funds?

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