Stop Making Stuff Up!

You know I'm always emphasizing the importance of avoiding the temptation to "Make Stuff Up" (MSU) when running a nonprofit organization. The Internal Revenue Service (IRS) has provided clear guidelines on how nonprofits should function and the methods they should employ. Straying from these guidelines can lead to legal troubles and jeopardize your organization's mission.

You may think you know what to do, but you don't know what you don't know!

I want to share a cautionary tale about a nonprofit founder who decided to MSU, ignoring the IRS's regulations.

Spoiler alert: it didn't end well. ????

The West African Community Council (WACC), a prominent nonprofit aiding African immigrants in Seattle, finds itself ensnared in a massive charity fraud scandal, marked by internal conflicts and legal disputes. The organization, renowned for its decade-long service to over 4,000 West African immigrants, primarily funded by grants from King County and several cities, is facing severe allegations.

On December 16, a King County Superior Court Commissioner issued an order affirming evidence of "misappropriation and theft" of funds by Issa Ndiaye, WACC's founder and long-time executive director. Ndiaye, after a decade of service and personal contributions, including donating his family home to WACC, was removed from his position.

A critical revelation emerged when a legal custodian, known as a receiver, was appointed by a King County judge to oversee WACC's operations due to ongoing legal disputes. In December, it was discovered that Ndiaye had maintained a secret WACC bank account since 2014, with substantial funds flowing through it regularly.

Bank records revealed donations from organizations such as Boeing, Group Health, Edward Jones, United Way of King County, and the Seattle Foundation funneled into this undisclosed account.

The bulk of the money was transferred from the WACC account to Ndiaye's personal account. Over eight years, nearly $2.5 million was transferred, with deposits gradually increasing to $50,000 and $100,000, as charitable donations flowed into WACC's account.

According to the Ndiaye, nothing he did was for his personal enrichment. Everything went to the community. The problem here is that he did not meet IRS regulations!

This case has raised significant concerns about transparency and the misappropriation of charitable funds.

(Read the entire story here.)

Now, none of us want to find ourselves in a similar predicament. If you're making things up as you go along, you're essentially gambling with your organization's viability. The good news is you don't have to guess or take unnecessary risks. I have the roadmap to help you steer your organization in the right direction and stay compliant with IRS regulations.

Are you ready to work with a seasoned nonprofit professional with 30 years of experience? If the answer is yes, hit reply, and let me know that you're ready to put an end to the MSUs. I've got your back!

Don't let your nonprofit's future hang in the balance by ignoring IRS guidelines. Let's work together to ensure your organization thrives while staying on the right side of the law.

Here's to your nonprofit's success! ?

Need help with your nonprofit? I specialize in building solid foundations for long-term scalability and sustainability. Wherever you are in your journey, I can guide you in creating a profitable and enduring organization. Let's achieve your mission and make a lasting impact together! Get in touch at [email protected], book a?discovery call, or hit me up here on LinkedIn.