Criminal indictment outlines what tax exempt nonprofits should not be doing.

Nonprofit and Church Legal Trends - Free Edition - March April 2007 (free edition)

The federal criminal indictment of a powerful Pennsylvania State Senator focuses heavily on the operations of a 501(c)(3) community betterment organization founded by the Senator’s employees and allegedly run for his personal benefit. It alleges improper conduct, such as using the organization’s credit card to buy tools and equipment for his personal houses, which has traditionally deemed to be handled as civil matters, not criminal.

This detailed article takes a close look at the case. There are numerous personal benefit issues—both monetary and non-monetary, allegations of incorrect and misleading Form 990’s, and obstruction of justice charges. Extremely important issues are raised here and all nonprofit organizations should be aware of them.