I don't think it's clear either....I feel like it tries to imply that it was purchased with community money? If that's the case, it's understandable but really shouldn't have been registered to a person, but the charity. Things happen in small orgs though. I can understand feeling entitled to the domain, in this case.

If he purchased it and was funding it out of pocket, I agree PLC has no right to try to force him to hand it over