Article Archives >> To the Point

If funds are stolen from a 501(c)(3) charity, does the Board have an obligation to report it to the police if the funds are returned?

Generally, citizens have no duty to report the commission of a crime to law enforcement authorities. Whether you want to press charges will probably depend on many factors, including the amount involved, the history of the culprit, insurance requirements, and the circumstances that caused the theft. Boards reach different conclusions in different situations.

We recently heard of one national organization with local fundraising chapters that had a policy of prosecuting in any case of theft.  It felt that the deterrence from the message sent to employees saved it a lot of money in the long run and gave donors a sense that it wanted to protect their contributions.  Prosecutors will tell you that in many cases when they find someone who has stolen from a nonprofit, the person had done it before at some other organization and had been dismissed without prosecution.

If you are required to file the new Form 990, and if the diversion exceeds the lesser of $250,000 or 5% of the assets of the organization at the end of the year, you will be required to report it on the Form with an explanation of what happened.  At that point, if you haven’t reported it to authorities, your donors may begin to ask why not.

Rev: 6/14/9

Article Archives >> To the Point

Planned Giving Primer

Pre-recorded Webinar -
Listen Today

Planned giving sounds complicated, with its CRUTs and CRATsCLUTs and CLATS, and CGAs.  It can be incredibly complicated, but it needn’t be. Keeping it simple may be the best way to start a planned giving program for a charity that hasn’t already put one in place.

This webinar offered a review of major planned giving instruments and a discussion of ones that make the most sense to emphasize in starting a planned giving program.  It discussed the advantages of integrating planned giving into an existing development program, targeting the best prospects, getting buy-in from the board that is likely to generate results, and setting a structure to make it all happen.


Receive the weekly question by e-mail

Sign up and receive FREE:

Weekly question and answer

Notice of each full edition
and its free stories

Report on 501(c)(3) electioneering

 

What our readers say about Nonprofit Issues

Once again you've tackled a tricky question and explained it so we all can understand the issue.--M.V.

Thank you for your informative and keen advice on nonprofit matters. I believe it's a unique and concise place to get answers to this often wispy area called nonprofit. --R.T.

 

Have a question?

If you can't find your answer, submit a question and Don will pick one question a week to answer online and to include in our weekly e-mail notice.

Other ways to
find answers:

Talk to the Editor
Next Conference Call:
Thursday, August 7, 2014

Participate in this bi-monthly telephone seminar conference call and ask your questions directly to Editor Don Kramer.

Access the entire site
($9.95/24 hours, $17.95/3 months).


  Help

Nonprofit Issues Live
Full Day Program
A well-received full-day program that covers the current hottest topics in nonprofit law. Qualifies in Pennsylvania for Continuing Education credits.

Speaking Engagements
Don is available for programs and speaking engagements ranging from a one-hour presentation to a full-day primer on nonprofit law. Contact us if you are interested in having him speak at your program.


None of the information on the Nonprofit Issues Website should be deemed legal advice or
should be acted upon without prior consultation with appropriate professional advisors.
Materials prepared by Nonprofit Issues contained in these pages is copyrighted by Nonprofit Issues, Inc., 2009-2012.

Home | Article Archives | Ready Reference | Ask the Editor | Bookstore | About Us

Change Profile/Password
Subscribe or Renew

Free E-notice

Nonprofit Issues, Inc.
P.O. Box 482
Dresher, PA 19025
(215) 542-7547 FAX (215) 542-7548
1-888-NP-Issue

E-mail Us