What can a non-profit director do if they suspect unethical practices by the board president?

UPDATED: Mar 30, 2012

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What can a non-profit director do if they suspect unethical practices by the board president?

I am a newly appointed executive director for a small-town arts non-profit. Since I started I have become aware of unethical practices by the board president and by her daughter who is one of the teachers. When I told her that we haven’t implemented programs we agreed to with funding received from foundations, she told me, “Oh, we don’t actually have to Do those things, just write that we did and that’s enough”. I strongly suspect mismanagement of grant funds. What can I do? I don’t want to lose my job but this must be investigated.

Asked on March 30, 2012 under Employment Labor Law, Colorado


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If you suspect that the board president is engaging in unethical practices with respect to the non-profit, you need to carefully read the bylaws as to the internal mechanisms of the entity and see how this might allow for her removal. If the entity has an attorney representing it, you should consult with the attorney with respect to your concerns.

I assume the non-profit is a corporation. If so, contact your state's department of corporations concerning your concerns as well and suggest an investigation into this non-profit.

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