Intercollegiate Alumni Club v. Kirchner

The Intercollegiate Alumni Club of Detroit, a nonprofit corporation, was organized in the fall of 1928 for the purpose of raising money to purchase a site for a club house and to build and furnish the same. The plan was to solicit memberships from college men, the cost of each membership being $200. The subscription agreement contained the following language “at least 75 per cent, of the membership fee will be placed in a trust fund for building purposes, subject to a vote of the members.”

When the membership campaign was started, a committee was appointed to investigate and determine the…