nonprofit ethics question.

[TAB]

As many if you know I cofounded and run a nonprofit.   The cofounder passed recently, leaving all duties to me.  Which I can not handle as I already have enough on my plate for 4 people.  I found some one that can replace. Amada, but can not work for free.  Right now 100% of are funds goes to help people.  I own the building where the office is located and its 100% staffed by volunteers.   So are operating costs are zero.  I get all fliers and the like thru donations or my own pocket book.    I very much would like to keep it this way as I am firm believer you do whats right because its  right not for $ or to be seen doing whats right.   

Is it wrong to pay some one with funds from my construction company to handle things at the nonprofit.

Its going to cost about 80k a year for said person after all exp.

[fatbaldguy]

Ethical or not, you want to have a lawyer inform you on the legal aspect of what you propose.  Don't let your heart's good intentions land your very real ass in a cell with Bubba!

[TAB]

Its not illegal.  Its me making a donation.  I already spoke to my attorney about it, she was the one that recommend the person.

[dipisc]

Hi;

     I would put "out the word" anyway you can that you need some one to help in a non profit with no pay and see what your responses are. There are a lot of people out here that are retired and just need to do something to keep them busy.

     I would take the time to ensure that they are reputable and if possible be bonded. Placing as many safe guards as possible and accounting be as transparent as possible.

     It use to be some time ago ( 10-15 years ago ) that to be bonded for $1,000,000 only cost you @ $100. a year.  Very cheap insurance to ensure any funny business !

[TAB]

What I need is a event coordinator/fund raiser in the sf bay area.  They must be comfortable around a wide range of people including the lbgt community as well as people that are hiv+.  We give people support that either just found out they are positive or are coming to grips with it.  We also lend support to sexual assault victims.  The foundation is named after a very special lady that I knew.  At 14 she was attacked by several people and thats how she contracted hiv.  She took her own life(its in the left the range section)  after a very long losing battle.    She spent the rest of her life trying to help others.  Too this day I still get choked up talking about her.  She was just a good person that got shit on in life and came out stronger.  I met her at a fundraiser for shriners in 2004.   I kid you not more then any one else in my life, she had the biggest impact.

So far been up a little over a year and have given out every penny we got too the tune of about 1.4 million.   We have a hot line that if you call it, some one always picks up the phone as it is manned 24/7/365.  All 100% volunteer.   If you ask you will even be transfered directly with my cell.  Which I will always pick uo(have it set to a funny ring so I know)

We have tons of medical staff that can answer questions, lic head shrinks...  all donate tgier time for free.

We even have several victims right lawyers that we refer to that are 100% probono.  As well as a few paralegals that can help with things like filling out victims help forms.    The net work is 93 people with Amanda's death and I have a stack of people that are requesting info on how they can help.   Yeah Im just a little busy.  Peiple in simlar positions are getting 6 figures.  Its costing me 50k a year to do it and even more in lost wages.

[Sponsor]

[crusader rabbit]

One of the earlier responses said you should contact a lawyer.  Please, take that advice to heart and make/keep an appointment with a competent tax/non-profit attorney. 

The rules are very specific about what you can and cannot do with funds coming into the non-profit, or with funds paid by your construction company to facilitate the work done by the non-profit. This is especially true when a for profit is paying a non-profit administrator to solicit funds from the public. I can assure you getting the IRS interested in co-mingling funds will do much more than simply spoil your day.

It can be worked out, but you will want an attorney to do it.

Additionally, you may want to review the by-laws of your 501-C-3 to make sure you are not required to fill the sudden vacancy.  You may need to find/appoint additional persons to the Board of Directors to bring the whole thing back up to legal status.

There has been of late a great deal of interest in 501-C-3s misusing funds.  The IRS is actively pursuing those suspected.  It sounds like you are doing really good work.  You most assuredly do not want the government upsetting that apple cart.

Crusader Rabbit

[Solus]

You know where your heart is TAB. 

It is moral and ethical as long as you see it needs to be done to continue the charity.

From a business sense, you are in the best position to decide if the 80K is worth what is being paid for.

And you not wanting or being able to put in more of your personal free time to make up the lack is not wrong.

You will make the decisions based on what you believe is right and that will make them ethical and moral...whether you make a sound business decision is a different question

[TAB]

One of the earlier responses said you should contact a lawyer.  Please, take that advice to heart and make/keep an appointment with a competent tax/non-profit attorney. 

The rules are very specific about what you can and cannot do with funds coming into the non-profit, or with funds paid by your construction company to facilitate the work done by the non-profit. This is especially true when a for profit is paying a non-profit administrator to solicit funds from the public. I can assure you getting the IRS interested in co-mingling funds will do much more than simply spoil your day.

It can be worked out, but you will want an attorney to do it.

Additionally, you may want to review the by-laws of your 501-C-3 to make sure you are not required to fill the sudden vacancy.  You may need to find/appoint additional persons to the Board of Directors to bring the whole thing back up to legal status.

There has been of late a great deal of interest in 501-C-3s misusing funds.  The IRS is actively pursuing those suspected.  It sounds like you are doing really good work.  You most assuredly do not want the government upsetting that apple cart.

Crusader Rabb

  the charter is pretty clear, there are 2 people on the board of directors.  One passed, as the other one I have sole say on when and how her position is filled.   It is suppose to be unpaid, but there is a cluase that allows for pay for up to 1 year.  I don't want to to ever pay a prrson a dime.  I feel that you should do it becuase its right. My mom was a lead auditor for ftb(cas irs)  so my books are scarry good and are done to such an anal standarf its not even funny.  Every piece of paper generates at least 3 more.  Often its 10+. 

For me this is not about the money, its about being able to keep providing services to those in need.  For about 80k. I can til I can find a replacement. 

[Timothy]

Legal advice from pros is warranted. 

[TAB]

Legal advice from pros is warranted.

i already got that... my question really was if it was right to pay some one to do something I think should be done because its the right thing not for money.