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Any reason to prohibit convicted felon from serving on a nonprofit board?

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Any reason to prohibit convicted felon from serving on a nonprofit board?

Is there a statute prohibiting convicted felons from serving on a 501(c)(3) corporation board?

Although a prohibition barring certain convicts from serving on charity boards was one of the suggestions floated in the Congressional discussions leading up to the charitable “reforms” included in the 2006 Pension Protection Act (See Ready Reference Pages: “Senate Committee’s White Paper Proposes Vast Expansion of Federal Power Over Charities” and “Congress Passes Charitable Reforms”), it was not passed and does not seem to have much support for any future legislation.

Occasionally, a state Attorney General will negotiate or obtain a court order to prohibit specific individuals from serving for a period of time.  The Attorney General of New York prohibited officers of the Trump Foundation from serving and has sought such an order for officers of the National Rifle Association.

Tuesday, December 4, 2007

Comments

That is correct. However, from a non-legal perspective, I would presume the Board would be reluctant to do so given the public perception. The nonprofit is generally raising funds from the public and the public perception could be harmed if it were known that they hired a known felon unless its charitable mission is to rehabilitate them.

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