Can the Friends of the Library lose their non-profit status if they don't spend their money?
In 2008 the IRS gave the following response:
The Internal Revenue Service does not set a time limit on when money needs to be spent. The Friends status would only be in jeopardy if the money is spent on something not specified in the Friends of the Library Charter.
For example, if the Friends of the Library decide to give all their money to the Make a Wish Foundation with NO stipulation that the funds were to be spent on the Library with which they were associated, that action could cause them to lose their nonprofit status because that wasn't the original purpose given when they applied for their nonprofit status.