"Whistle Blower Policy"
"Associations Must Comply With Federal and State Laws"
The letter was read to the members in attendance on 16 February 2011, after 630 pm. Earlier, I was shocked when I was told that the letter will be read before the membership, that I will have to provide my input. I informed the president via email that such was not necessary, the letter of complaints was to be recorded, then investigated by an appointed committee. The letter was read to members by the president of the association. I provided my input to the membership on why the association must comply. Majority of the members had no idea what the letter was about. Those same members are not interested in governance of the associations. There interest lie elsewhere. Motions were made to have the board of directors to investigate and report back to the membership.
You can see that the majority of items I listed was not addressed. Normally, such action is communicated to membership via a separate letter, not in the minutes. No committee from the membership was established to investigate and report to the board, then the membership. The responses in the minutes is just a con to steer the members away from the association way of violating IRS reporting. This indicates that the board knows they are not in compliance with IRS requirements as a nonprofit or for profit organization. The board has degraded the trust the public and community granted to operate as a trusted organization.
Sarbanes-Oxley Act of 2002 (SOX) and the Whistleblower Act requires unincorporated and incorporated business entities to be in compliance (only two items are subject to nonprofits). The two Items are: Document Retention and Whistleblower Policy. If noncompliance is discovered or reported by a member or public citizen, the organization's board is granted a chance to make correction(s) from noncompliance to compliance in a timely manner. This allows an organization to downplay complaints made by fraudsters. And it protects the whistleblower from retaliation by the organization.
All organizations should address and have a "whistleblower" policy. The policy should be explained to the membership that one of the organization's goals is to be "compliant". Members should be required to sign a statement of understanding, See sample letter below. Anytime an association is informed of non-compliance, the board is obligated to inform the membership and correct the problem(s) that places the association at "risk".
All organizations should address and have a "whistleblower" policy. The policy should be explained to the membership that one of the organization's goals is to be "compliant". Members should be required to sign a statement of understanding, See sample letter below. Anytime an association is informed of non-compliance, the board is obligated to inform the membership and correct the problem(s) that places the association at "risk".
S A M P L E
Subject: Sports Officials Protection (Whistleblower) Policy
If any employee reasonably believes that some policy, practice, or activity of [Name of Nonprofit] is in violation of law, a written complaint must be filed by that employee with the Executive Director or the Board President.
It is the intent of [ Name of Nonprofit ] to adhere to all laws and regulations that apply to the organization and the underlying purpose of this policy is to support the organization's goal of legal compliance. The support of all employees is necessary to achieving compliance with various laws and regulations. An employee is protected from retaliation only if the employee brings the alleged unlawful activity, policy, or practice to the attention of [ Name of Nonprofit ] and provides the [ Name of Nonprofit ] with a reasonable opportunity to investigate and correct the alleged unlawful activity. The protection described below is only available to employees that comply with this requirement.
[ Name of Nonprofit ] will not retaliate against an employee who in good faith, has made a protest or raised a complaint against some practice of [ Name of Nonprofit ], or of another individual or entity with whom [ Name of Nonprofit ] has a business relationship, on the basis of a reasonable belief that the practice is in violation of law, or a clear mandate of public policy.
[ Name of Nonprofit ] will not retaliate against employees who disclose or threaten to disclose to a supervisor or a public body, any activity, policy, or practice of [ Name of Nonprofit ] that the employee reasonably believes is in violation of a law, or a rule, or regulation mandated pursuant to law or is in violation of a clear mandate of public policy concerning the health, safety, welfare, or protection of the environment.
My signature below indicates my receipt and understanding of this policy. I also verify that I have been provided with an opportunity to ask questions about the policy.
___________________________________
Official's Signature
___________________________________
Date