Badly managed charity?

What recourse does a member of the public have if there are concerns about how a public-benefit corporation is being run?

If you have reason to be concerned that a charitable nonprofit is being poorly managed, or worse, is somehow engaged in wrong-doing, there are several steps you can take.

First, educate yourself as much as possible. You want to be sure you are not misinterpreting or misunderstanding what’s going on. Ask questions. Talk to others involved with the organization. California law requires nonprofit corporations to provide certain documents, such as the organization’s application for tax exemption and annual informational returns, upon written request. If the organization refuses, this may be grounds for further action.

Familiarize yourself with the relevant sections of the California Corporations Code, especially those related to nonprofit public benefit corporations. This code outlines the legal requirements and obligations of such organizations.

Look up the organization’s records on the Secretary of State’s and Attorney General’s websites. Each has a simple search tool. You’ll be able to see if the organization is up-to-date with its required documents and filings.

Ultimately, if you are convinced there is something wrong, or if the organization refuses to provide the required documents, you may file an official complaint with the Attorney General’s office.