What can be done if a director or president of a non-profit is suspected of using funds for personal gain?”
All board members have a duty to ensure that the funds of a non-profit organization are used for gratuitous or charitable purposes. This duty involves making sure that all board members and the president are using funds for such purposes. If there is a suspicion that a member or the president is acting dishonestly, then the rest of the board should investigate this behaviour, and if necessary dismiss the offending director. This can be done only in line with the organization’s constitution. The procedures for doing this will be contained in the organization’s constitution or by-laws. This may involve an impeachment/removal process by other directors, or an election involving the organization’s members. Furthermore, it must be noted that a director who is misappropriating funds of a non-profit or charitable organization for personal profit is breaking the law and could be criminally liable. The provincial and federal governments have extensive investigatory powers which they can use to
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