A non-profit organization is playing a shell game with the manner in which it bills those getting a service from said organization. How can I report this suspicious financial activity, and get their books audited to make sure everything is on the up-and-up? Who can I report this to? Is there some government watch dog?
Sorry, don’t have an answer for you. But wondering, how do you know this is happening?
Nonprofits are required to file a form 990 with the IRS. They should have to give you a copy if you ask. If you can show cheating there, the IRS would be very interested.
I would try your state attorney general’s office. There’s a good chance they have a unit responsible for overseeing NFP’s.
Can you give a little more detail about who is being ripped off? That would inform the decision of who best to complain to.
One last point: Shady dealing by NFP’s is fairly rampant. Unless your situation is particularly outrageous or egregious, don’t be surprised if the gummint doesn’t really care.
In the U.S., the Attorney General and/or the Secretary of State of each state regulates the activities of nonprofits. The theory is that they are to benefit the public at large, and hence these govt agents scrutinize them. Your allegations are very vague so I can’t offer better advice. The 990 is their annual federal tax return.
Actually, to be a bonafide non-profit you must hold the IRS status of a 501-C3 tax bracket. This means you must submit everything to the IRS each year, and they audit your financial statements each year when you are a non-profit. They do this so when you write grants and such, most grantees need this audit for them to consider said org for a grant.
My wife and I contribute heavily to the Make-A-Wish near where we live…I have sat on the board before as well. If something is fishy, audit them, their records are of the public kind…so find out for yourself if you wish.
This is not entirely accurate. 501(c)(3) corporations must file a federal 990 each year, that is correct. They must also file a state non-profit return depending on which state they are in. However, the IRS does NOT perform an audit of all 501(c)(3) corporations. They may choose to audit the return of the non-profit, but it is not automatically triggered by the submission of the return.
Certain federal grants above a specific dollar threshhold will require what is known as an OMB A-133 Audit (Single Audit). Other state/federal/private grants will require an independent audit to be performed. Certain banks will require an audit prior to loaning money. Certain investors can require an independent audit as a condition of donating funds. And lastly, the non-profit can have an independent audit performed at its discretion for its own purposes.
Remember a 990 is just an information return. If the non-profit is commiting fraudulent behavior, it is unlikely you will be able to discern it by examining their return.
I am curious to know what leads you to beleive that they are “playing a shell game”.
Bone is the only one answering this question who is on the money.
But let’s add some things: There are a number of types of non-profits. 501©(3) is but one designation. There are educational institutions. Labor Unions. Religious organizations. All of which are non-profits and aren’t ©(3)'s. A C3 is for the general public good, and must define a specific purpose.
990s are tax forms. They list sources of income, paid staff, and officers. That’s about it.
As to audits: unless a non-profit is obtaining over a quarter million in federal funding there’s nothing the feds say that requires an audit. Some non-profits also receive funds from groups like The United Way. These organization often also require an audit. Audits, by the way, aren’t this big deal. It’s an accountant saying that as far as I can tell the books are in order.
Finally as to the comment: Shady dealing by NFP’s is fairly rampant That’s just plain not true. Enron was a For Profit. World Com was a For Profit. etc. etc. Non-profits depend upon the generosity of people who want to make the world a better place, or at least their little part of it. Most are lucky to survive. Shady dealings are much more likely in Corporate and Government offices.
Assuming for the sake of argument that shady dealing is common in the for-profit sector, it does not follow that NFP’s do not engage in such practices. In the course of my work, I review records of NFP’s on a regular basis and I completely stand behind what I said before.