How to Report a 501(C)(3) Non-Profit Violations

[opheliaheart]

I have information that a 501c3 non-profit organization is in violations.

Their founder and trustee has effectively been running and profiting from a business that mirrors the non-profit organization.

Recently, the non-profit organization faltered on renewing a contract for an annual event fundraiser. As a trustee of the non-profit, once made aware of this oversight... rather than inform the admin, or take action on behalf of the org to renew their contract for the event location, the founder/trustee took it upon herself to take contract -- and the event name -- for her own profit business.

The well established yearly fundraiser has now become a for-profit event. The name of the event was barely altered, but the majority of attendees had no idea of the political wranglings that happened behind the scene. I was made aware of this and promptly cancelled my attendance.

Consequently, the president of the non-profit organization was hand picked and voted in with the insistence/persuasion of this trustee because the previous president was bringing to light the unethical behavior of the org's relationship with her business.

As a member of this non-profit organization, I am LIVID that this is allowed to happen. This fundraiser went to support us and put us in the "black" every year. Now, with the lack of income this event was suppose to generate, we are likely to be thrust BACK into the RED... affording this trustee the opportunity to sweep in and save the organization, and consequently solidifying her control over the whole operation.

What can be done? This can't possibly be legal!

[Mr. Knowitall]

You may have remedies under the laws of your undisclosed state; you may also be able to get the Attorney General's office of your undisclosed state to investigate.

The IRS accepts complaints about misconduct by charities; see this information and Form 13909.