You are here:

Nonprofit Law/Reporting False Salaries

Advertisement


Question
I work for a non-profit organization and it appears as if the company pays their employees one salary but report another salary in their reports.  As employees, we do not have access to any information regarding the grants that pay our salaries and if you question the company, they politely let you know you are jeopardizing your job.  Going to the board is not an option because it goes all the way up to the top.  In addition, we tried to go directly to the companies that fund us but they only take our concerns to the company with no actions to follow.

How can we find out our reported salary? or How can we request the state to conduct an audit on the company?

Answer
I don't understand.  Each employee receives at the end of the year a W-2 form which shows the compensation reported to the IRS. Now, if they have some publication in which they make a claim that the salaries are different, that may be fraud or mispresentation, but then there is only a problem if someone is damaged by a material misrepresentation.  Please clarify. After you give me that information I will reply further.

Complaints could go to your State's Division of Consumer Affairs as that office generally oversees charities within the state. http://www.njconsumeraffairs.gov/charity/chardir.htm

Harvey Mechanic, Attorney at Law -
Harvey108@hotmail.com

P.S. This response is intended to be a general statement of law, should not be relied upon as legal advice and does not create an attorney/client relationship.  

Nonprofit Law

All Answers


Answers by Expert:


Ask Experts

Volunteer


Harvey Mechanic

Expertise

I am an attorney and I volunteer time to answer general questions about U.S. Federal income tax issues of nonprofit 501(c)(3) public charities only. Those questions could be about establishing and maintaining legal requirements for such non-profit organizations in the United States, including Internal Revenue service filings and requirements. I will not be working on this free forum to answer questions about Nonprofit's possible unrelated or for-profit businesses or how to fill out forms. This forum is only for general questions about federal tax law, not as the law applies to your specific situation. If you do not make your question public then I will not be spending much of my donated time on answers that would not benefit the public. If you have other questions, please contact me at Harvey108@hotmail.com I will reply from my email. In any case, do not reveal confidential information to me until after I have contracted with you to provide personal legal services. My responses on this forum are intended to be general statements of law, should not be relied upon as legal advice, and do not create an attorney/client relationship. For me to consider your individual situation and how the law applies, I would need to gather extensive information about the situation. To search my previous answers you can do a Google search by "site:allexperts.com/q/nonprofit" without the quotes and then add your search terms before hitting enter.

Experience

I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar and I have maintained my status with the Bar since that time.

Education/Credentials

B.S. Columbia University in New York City, 1970

J.D. (Law Degree) Brooklyn Law School, 1990 -- Cum Laude.


©2016 About.com. All rights reserved.