Married couple running a non-for-profit

[LuvToRead]

I was hoping someone would have some insight or even a source I can go to.  I tried googling it but the only info I could find has to do with married board members.

Is it against any rules/ethics codes/etc for a married to couple to run the day to day operations of a non-for-profit?  This is not a non-for-profit established by the couple.  He was hired as the manager, their office staff left (they are difficult to work for) and the wife was then hired as the office manager.  They are the only 2 with access to the credit card, cash, make the deposits, etc. 

 

Edited November 24, 2021 by LuvToRead

[historically accurate]

There are rules in the nonprofit I work for, but it's a government entity (library), so the disclosure laws are based on that. I did find this column that says hiring practices would have to be spelled out in the handbook. In the case you described, it's definitely a situation that is ripe for abuse, so I might be willing to stick my nose in and tell the upper levels. 

https://www.missionbox.com/article/579/family-members-working-at-your-nonprofit-good-news-or-trouble

[TechWife]

It depends on how the non profit was set up & the wording of their bylaws. I’ve read a few over the years and limits on who holds what positions has been limited to officers of the organization. Non profits seem to be exempt from some employment regulations. So, it may or may not be legal, but it certainly seems unethical. There should be a board of directors overseeing the work of the org & holding them accountable. 

[gardenmom5]

It will vary by state, and if it's a state or federal organization. 

The parent org may not be aware they are the only ones with access. If you have any legitimate suspicion they are using it as a personal piggy bank,  you can drop an anonymous note saying why to the parent org, and the overseeing agency.  Hopefully that could trigger an audit.  If there is any malfeasance it should be caught. 

[LuvToRead]

5 minutes ago, historically accurate said:

There are rules in the nonprofit I work for, but it's a government entity (library), so the disclosure laws are based on that. I did find this column that says hiring practices would have to be spelled out in the handbook. In the case you described, it's definitely a situation that is ripe for abuse, so I might be willing to stick my nose in and tell the upper levels. 

https://www.missionbox.com/article/579/family-members-working-at-your-nonprofit-good-news-or-trouble

Thank you for the link! My husband has said it is time I just tell someone about my concerns.  The interesting thing is there is another subsidiary that was told by the auditors last year they needed an unrelated person in the office, so I was surprised when his wife was hired to work in the office.  Right now I am still seeing things through my "I am still mad and upset" lens, but I honestly think it's what they wanted from the start.  She pushed the office staff out so she could run the office.    There are only about 5 year round employees, with several people hired for the summer.  So a married couple makes up the bulk of the staff.

 

[LuvToRead]

1 minute ago, gardenmom5 said:

It will vary by state, and if it's a state or federal organization. 

The parent org may not be aware they are the only ones with access. If you have any legitimate suspicion they are using it as a personal piggy bank,  you can drop an anonymous note saying why to the parent org, and the overseeing agency.  Hopefully that could trigger an audit.  If there is any malfeasance it should be caught. 

They are aware.  They are actually audited every year.  But only certain receipts are looked at (like 3 or 4 a year) so I would be surprise if the 3 I had issues with will even be flagged. 

[LuvToRead]

9 minutes ago, TechWife said:

It depends on how the non profit was set up & the wording of their bylaws. I’ve read a few over the years and limits on who holds what positions has been limited to officers of the organization. Non profits seem to be exempt from some employment regulations. So, it may or may not be legal, but it certainly seems unethical. There should be a board of directors overseeing the work of the org & holding them accountable. 

This is what I was thinking.  It has literally just occurred to me today when I was typing this post that the place I worked did not have it's own Board of Directors.  There was literally no one I could go do with my concerns.  We were supposed to run everything through the manager - which was hard considering it was the manager I had a problem with.

 

[gardenmom5]

4 minutes ago, LuvToRead said:

This is what I was thinking.  It has literally just occurred to me today when I was typing this post that the place I worked did not have it's own Board of Directors.  There was literally no one I could go do with my concerns.  We were supposed to run everything through the manager - which was hard considering it was the manager I had a problem with.

 

if they had a parent org - you go there.

non-profits do have to report to state/federal overseeing agencies.  if you have concerns that are not being looked at by either the board or parent organization - go to the gov't overseeing agency.

[LuvToRead]

10 minutes ago, gardenmom5 said:

if they had a parent org - you go there.

non-profits do have to report to state/federal overseeing agencies.  if you have concerns that are not being looked at by either the board or parent organization - go to the gov't overseeing agency.

You're right.  I just don't want too but I feel I have an obligation.  I guess I am afraid I could be wrong and start something that hurts innocent people. 

[Jean in Newcastle]

We had to submit our by-laws to the state. I am fairly sure that they are public record. We do allow some family members to be on our board. Financial records are submitted and reviewed by the entire board. Our bylaws include what procedures to follow if there is a complaint or concern. 

Edited November 20, 2021 by Jean in Newcastle
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