Top Ten Ways to Get Investigated by a State Regulator

By Marianne Downing

In 2016, Vernetta Walker from BoardSource met with a group of state regulators from all over the country and asked an important question, "What are the things that would trigger you wanting to investigate a nonprofit?"

The following makes interesting reading and at the same time, spells out the expectations that are upon us as public organizations charged with working in the public interest. How does your organization stack up against this list? (I thought the last one was amusing!)

  1. Board Governance: Directors and senior leadership failing to be sufficiently active and informed
  2. Failure to Safeguard Assets: Fraud and embezzlement
  3. Conflicts of interest i.e. Would the media and your Mom understand?
  4. Excessive compensation of the CEO/ or Excessive power of the CEO
  5. Clear failure to follow the mission
  6. Membership issues/managing board conflict
  7. Misusing endowment and restricted assets
  8. Fundraising issues e.g. failure to register, misrepresentation of fundraising
  9. Lack of public accountability and transparencies
  10. Ignoring the Attorney General’s Office