A non-profit organization participates in a fundraising activity in which members can purchase gift cards to Kroger en masse through the organization, and Kroger will give the organization 4% of the value of the gift cards as a charitable donation. (i.e., member pays $200 for Kroger card, member gets $200 Kroger card but the organization also gets $8). Members write checks to the non-profit; checks are made out to the organization but designated for Kroger cards. Checks are not utilized to purchase Kroger cards, but are instead diverted to general operating funds for the organization. Requests to the CEO and treasurer for either refund of money or Kroger cards are unanswered. Does this situation qualify as theft by failure to make required disposition of property in Kentucky? Can organizations be charged with this offense, or only individuals?
This is a criminal defense question, not an employment question. It sounds like theft, fraud, and possibly other crimes that I have not Thought of. Individuals and organizations can be charged. More than likely it is one or more individuals. If you are a victim, turn it over to the police, commonwealth attorney, or county attorney. If you are the criminal, get a good lawyer.
The advice given here is general in nature and does not create an attorney client relationship. I am not your attorney. I am licensed in Kentucky, Ohio, and federally in the E. Dist of KY, W. Dist of KY, Southern District of OH, as well as the 6th Circuit Court of Appeals. All answers are for information purposes only. You should consult counsel in your area to handle any legal matters raised in this forum. Kentucky law does not certify specialties in the practice of law. This is an Advertisement.
There are actually a couple of problems with this. First is the fact that contributors are making a payment to the charity to buy the Kroger card, presumably for themselves with the intent to receive a $200 deduction while still receiving the benefit of the $200 card. On the other hand, if the money is donated to buy Kroger cards for use by the charity, and the charity can then use the Kroger card without designation, then having the money go into the general fund does not seem to be significant. The donor still get's their write-off but the charity loses the extra 2%.
If you think what they are doing is illegal, contact your County Attorney's Office or the Attorney General's Office to see if they will investigate.
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