Board hires a boardmembers son

We are an Illinois Gen'l Not for Profit, tax exempt Corp. Just recently discovered a boardmembers son was hired to do summer work, paid $10.00/hr. This is the second, possibly third year, that this person has been getting paid by the board to perform work that was not advertsised/made known to other homeowners(except boardmembers). The expenditure was not itemized on the P&L, rather it was just another landscaping expense. I called IRS, the specialist for TE/GE provided info should I decide to proceed with a complaint. I suspect the board will use the D & O insurance to defend their actions, is it even worth trying to fight them? Thank You.

Have you talked to the board about this - if not, that's where you should start. What was the guy hired to do? Did the work get done? Was it satisfactory? Did the board try other methods to find someone to do the work before hiring the son (such as putting something in the newsletter about looking for hired help so the children of other homeowners might apply for the job)? Did the parent refrain from participating in any discussion about hiring his/her son? Did he/she abstain from voting to hire the guy?

I don't know what you mean by your statement "I called IRS, the specialist for TE/GE provided info should I decide to proceed with a complaint" - were you talking about THE IRS? I would be concerned if the board didn't provide tax information on this employee because the income is taxable (in fact, add that to the list of questions above).

If you don't get a response or the response is vague, you may want to discuss this with other homeowners to see how they feel. If all of you approach the board, it will have to change its tune. In the future, I would suggest that the board prepare a policy that addresses situations like this.

I believe board members should always watch for actual or implied conflicts of interest in their work - if something exists, they should disclose it immediately and if it can't be resolved, the board member should refrain from participating in any discussion on the issue and abstain from voting.

Sounds like much to do about nothing. If there was one position and it was filled just what purpose would it serve to now seek applicants? Yes we could spend several months with the hiring process and around Labor Day we could make a decision.

And if this kid was hired in years past, knows the job, is familiar with their duties that makes it easier. Understanding the major $10 per hour expense the Board is making.

Then in a moment of free time this requires contacting the IRS! Insanity!

IMO some people just live to "discover" what they percieve as "wrongdoings" because it doesn't sit well with THEM. When in fact they lack the ability to see any other position on the matter.

Let it go. And try your best to not contract the federal authorities when it comes to some kid working a Summer job.