Attorney General Ellison requires charity to dissolve over governance violations

Urban Advantage Services failed to register and meet basic governance standards, abandoned charitable purpose

November 8, 2024 (SAINT PAUL) — Minnesota Attorney General Keith Ellison today announced that he has reached a settlement with Urban Advantage Services (“UAS”), a Minnesota nonprofit corporation, requiring it to dissolve due to multiple governance violations. As a part of this dissolution, UAS will be transferring its remaining assets to organizations with a similar charitable purpose.

In an Assurance of Discontinuance filed in Ramsey County, Attorney General Ellison alleges that UAS failed to employ a treasurer, maintain a registered address, maintain adequate books and financial records, and abandoned its corporate purpose. Further, UAS’s board of directors failed to meet as often as required, file tax forms with the IRS, enforce the corporation’s bylaws, and familiarize themselves with their responsibilities as directors. Additionally, UAS failed to register with the Minnesota Attorney General’s Office as a charitable trust. The Assurance does not preclude any claims against individuals, and it does not shield UAS’s officers or directors from any potential criminal liability.

“Minnesota requires nonprofits to follow laws about transparency and governance that help prevent charitable assets from being misused,” Attorney General Ellison said. “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.”

UAS was founded by Ilo Amba in November 2020 as a food shelf under the Minnesota Nonprofit Corporation Act. UAS’s stated mission was to “to provide skills building and employment resources that lead people to economic opportunities that improves their quality of life,” and to “inspire learning and sharing of knowledge by connecting people to each other through events and conferences.” The organization committed multiple governance violations as it secured funding and provided meals in 2021. UAS ceased its activities in early 2022.

In Minnesota, the Attorney General through the Charities Division has civil enforcement authority over the state’s nonprofit corporation, charitable-solicitation, and charitable-trust laws. The Charities Division does not enforce criminal laws.

Minnesotans with concerns about governance or other issues at a nonprofit may submit a complaint on the Attorney General’s website. Minnesota consumers may also contact the Attorney General’s Office by calling (651) 296-3353 (Metro area), (800) 657-3787 (Greater Minnesota), or (800) 627-3529 (Minnesota Relay).