NO BONDS REQUIREMENT Nonprofits Not Required To Carry Bonds For Protection Against Wrongdoing
Reported by: Associated Press
Web Producer: Jeff Morris
Reported: Feb. 7, 2013 9:13 AM EST
Eyewitness News Photo
, Kanawha County
, West Virginia
Nonprofit groups that receive public funds are not required to carry bonds as an assurance against wrongdoing, even after two recent cases of embezzlement.
Public authorities are required to be bonded so that money can be recouped in case of wrongdoing. The Charleston Gazette reported that does not apply to private charities and nonprofits that get public funds.
Officials of Charleston Multifest cultural festival and the Institute Volunteer Fire Department recently pleaded guilty to embezzling funds from their organizations.
In January, Deborah Starks, who handled much of the financial activity for Multifest, pleaded guilty to federal tax fraud for embezzling more than $300,000 from Multifest.
Institute Fire Department Treasurer Ethel Andrews pleaded guilty earlier this month to embezzling $25,000.
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