Report Non Profit Abuse

HOW TO REPORT CHARITABLE NONPROFIT ABUSE

What is charitable nonprofit abuse?

Charitable Nonprofit abuse (also known as nonprofit misconduct) occurs when a charitable organization engages in any type of illegal or unethical conduct involving finances or other components of the organization’s operations.

Where do I report charitable nonprofit abuse?

If you are a staff person reporting charitable nonprofit abuse, you may consider Steps I and II below. Members of the public may use Steps III and beyond. .

1. Supervisor/Whistle Blower

If an organization has implemented a Whistle Blower Policy, the employee should first report to the specified person. If the organization fails to enact a whistle blower policy, the employee should report to his/her immediate supervisor.

2. Human Resources Department

If an employee feels uncomfortable or dissatisfied reporting the complaint to their supervisor or whistle blower, the employee should then report the complaint to either the Human Resources Department or someone in a top management position.

3. Attorney General     

If the employee is still unsatisfied with the status of their complaint or if a member of the public needs to report an issue, a complaint form to the Attorney General may found at: https://www.attorneygeneral.gov/Consumers/Protecting_Pennsylvania_Consumers/ The States Attorney General Office is responsible for regulating charities and may take corrective actions against organizations.

4. IRS

If you believe that the activities or operations of a tax-exempt organization are inconsistent with its tax-exempt status, you may file a complaint with the Exempt Organizations Examination Division by completing Form 13909, Tax-Exempt Organization Complaint (Referral) Form: http://www.irs.gov/pub/irs-pdf/f13909.pdf. The complaint should contain all relevant facts concerning the alleged violation of tax law. Form 13909 is available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).

5. Bureau of Charitable Organizations (BCO)

If the complaint is specifically involving solicitation, a complaint should be reported to the BCO. A complaint can be reported by phone at:

1-800-732-0999 (within PA), 717-787-0700 (outside PA) 

or via mail to:

Division of Investigations/Audits

212 North Office Building

Harrisburg, PA  17120 

6. District Attorney

If the there is a suspicion of criminal behavior or misconduct by or within a nonprofit organization, a report should be submitted to the District Attorney. To find your local District Attorney, you may go to: http://www.pdaa.org/DA%20directory_ab.html

You may also contact the Pennsylvania District Attorney headquarters by phone at:

(717)-238-5416

or via mail to:

District Attorney

2929 N. Front Street

Harrisburg, PA, 17110

How Do I know to report charitable nonprofit abuse to the Attorney General, the IRS or the District Attorney?

The Attorney General, IRS and the District Attorney handle many of the same complaints. There is much overlap on a number of issues including staff, political activity, theft, etc.  The only real distinctions are reporting tax issues or criminal behavior. If a complaint is specifically regarding tax issues, the complaint should be reported to the IRS. The Attorney General is NOT responsible for tax complaints. For criminal behavior, the complaint should be reported to the District Attorney.

Final Word of Advice:

A charitable nonprofit abuse issue should only be taken to the press as a LAST RESORT. This action should not be considered unless all else fails. Reporting nonprofit abuse to the press may damage the public opinion of your particular charitable organization and/or may damage the public opinion of the nonprofit sector as a whole.