Beginning at the end of February 2011, I earnestly began a job search. It was time for me to return to the workforce. After several months of diligently applying for positions and attending numerous interviews, I found myself with employment. Terms negotiated and I was set to start on July 11, 2011. The position: to market and promote a non-profit private foundation and to provide key executive administrative support to the founder of the company.
On Wednesday, September 9 (about two months after I started), I was handed a severance check. What happened?
During the interview process, the CEO and the founder believed that the IRS Form 1023 Application to become a 501(c)3 non-profit corporation was completed and filed. Status of the filing needed to be followed up on and a fundraising campaign to be developed. Great. “Where’s a copy of the application?” I asked.
After five weeks, it became clear that the application had not been filed as it had never been completed. The paperwork had been filed with the State of Nevada but not the Federal Government. There were several indicators of this:
- 1. A check was never made to the IRS to submit with the application.
- 2. No Conflict of Interest Policy was written among numerous other policies and requirements.
- 3. No EIN number was assigned.
- 4. No one could produce a completed copy of the application.
I informed the executive team and began to complete the intensive form. Shortly thereafter, a list of 21 key items was laid out. Samples of key policies were given to the founder. He believed it would be as easy as cut and paste. Unfortunately, it isn’t.
I started with the Conflict of Interest Policy knowing this would be the toughest and biggest challenge. The founder of the profit corporation wanted to start the non-profit so he could raise funds to purchase the profit corporation’s products and to funnel those donations as R&D and manufacturing capital to the profit corporation. The founder owns well over 50% of the profit corporation.
Keep in mind I’m not an attorney but this is a HUGE conflict of interest. It didn’t sit well with me nor did it sit well with the other executives. The founder saw no problem with this philosophy.
As part of my contract negotiation, I requested vacation time off at the end of August for my annual trip to the desert. Just before I left, the founder made plans to meet with a non-profit specialist later that week. I gave him several documents including the Council of Foundation’s Conflict of Interest Policy and the Nevada State Attorney General’s Guide to Non-Profits. I heavily advised him to read these documents in preparation for his meeting.
I went on vacation with a clear conscience. It was not my decision to make but my responsibility to ensure he was fully informed.
Apparently while I was gone, the founder recognized that moving forward with the non-profit private foundation would jeopardize everything he had developed, created and dedicated his life to. Thus, the non-profit private foundation died with only an EIN number to mark its grave.
It was the right decision to make. I’m proud to have assisted in that process. I’m proud of the founder to make this tough decision.
And I’m back on the job hunt once again.
