Minnesota Attorney General Keith Ellison has announced a settlement with Urban Advantage Services (UAS), a nonprofit corporation in Minnesota, mandating its dissolution due to governance violations. As part of this process, UAS will transfer its remaining assets to organizations with similar charitable purposes.
In an Assurance of Discontinuance filed in Ramsey County, Ellison alleges that UAS failed to employ a treasurer, maintain a registered address, keep adequate books and financial records, and abandoned its corporate purpose. The board of directors did not meet as required, failed to file tax forms with the IRS, enforce bylaws, or understand their responsibilities. Additionally, UAS did not register as a charitable trust with the Minnesota Attorney General’s Office. The Assurance does not protect UAS's officers or directors from potential criminal liability.
“Minnesota requires nonprofits to follow laws about transparency and governance that help prevent charitable assets from being misused,” Attorney General Ellison stated. “Minnesotans are a generous people, and we expect our charities to obey these rules, keep proper records, and work to help people who need it. Urban Advantage Services fell short of these expectations and failed to follow the law, so I’m ensuring they dissolve.”
Founded by Ilo Amba in November 2020 under the Minnesota Nonprofit Corporation Act as a food shelf, UAS aimed "to provide skills building and employment resources that lead people to economic opportunities that improves their quality of life," and "inspire learning and sharing of knowledge by connecting people through events and conferences." However, after securing funding and providing meals in 2021, UAS ceased activities in early 2022.
The Charities Division under the Attorney General has civil enforcement authority over nonprofit corporation laws in Minnesota but does not enforce criminal laws.
Residents concerned about nonprofit governance issues can submit complaints on the Attorney General’s website or contact the office via phone numbers provided for different regions.