Is it illegal for a not-for-profit to promise a prize drawing for people who've raised money and then not do it?

November 29, 2011 9:42 PM

Is it illegal or just not very ethical for a not-for-profit to promise a prize drawing for raising a certain amount of money and then not follow through? I know YANML; I just need some info as I decide how to proceed.

I work for a wonderful small not-for-profit, which unfortunately has managed to hire a very unethical person as the Executive Director. Just to set the stage -- she is completely devious, but unless you've been one of her targets or seen her lie to someone's face without blinking an eye, you would never know because she comes across as being perfect. The Board is in her thrall and we (the staff) aren't allowed to talk to them about anything (so appealing to the Board is not an option).

In September we had a Run/Walk, and the staff, board and certain volunteers were repeatedly sent emails saying that we were one of 50 people who, if we raised $500 or more, would be eligible for a drawing for two prizes -- an iPad2 and a Kindle. About 6 people raised $500 or more, including me.

Jump to a month after the Run and the drawing has never been mentioned. At a staff meeting I asked "nonchalantly" what was going on with the drawing. The Director looked taken aback and looked at the Development Guy who looked taken aback and then the ED said "oh yes....I suppose we'll need to do that" then changed the subject. It was obvious to me and others there that they had either completely forgotten about it or were hoping everyone else had.

That was a month ago (2 months since the Run/Walk). Nothing more has been said and I know no iPads or Kindles have been bought. I want to see this drawing take place, not only because I think it's the right thing to do, but I'd like the chance to win one of the items.

I was thinking that later this week I would email the ED and the Development Guy and just ask again when the drawing will take place since if I win I would like to use the prize as a Christmas gift.

I know you are not my lawyer and I will not construe your advice as legal advice, but I'm wondering if their "promise" to have a drawing for prizes for people who then complied with their requirements, would be legally binding. I absolutely don't intend to take it to a legal conclusion, but I would like to know just for my own knowledge as I pursue this with the ED. We are in Illinois if that makes a difference.

I'd be grateful for any thoughts, suggestions, ideas, etc. If you'd like to respond to a throwaway email, it's [e-mail].

Thanks so much.

posted by anonymous to Work & Money (20 answers total)

Lawyer. Now.
posted by jayder at 10:06 PM on November 29, 2011

It's not unusual for staff not to be permitted to talk to a board of a nonprofit. That's management's role. The board hires and directs senior management, who them run the day-to-day affairs, including managing all the rest of the staff.

You don't skip over layers of management for something like this, anyway. It's wrong of the ED, yes, but it's not a firing offense. Either add it to your ammo against this person until such day as the Big Bad Deed For Which ED Can Be Fired is committed or quit your job.
posted by Mo Nickels at 10:19 PM on November 29, 2011 [1 favorite]

Did you raise the money to help the wonderful small not-for-profit or did you do it to score a ipad? Was the money raised used in what ever good deeds the non-for-profit does or was it used to personally enrich the board. If the later than I can understand the anger/frustration. If the former...well...

As Burhanistan stated, there is little recourse that wouldn't end up with you possibly losing your job. Furthermore depending on how close-knit the field is you may end up getting blackballed from other similar companies.

Hire a lawyer to gain a chance at winning a iPad? Not the best move economically speaking.

It just isn't worth it for the mere possibility that you might win something.
posted by 2manyusernames at 10:19 PM on November 29, 2011 [2 favorites]

Speaking from an ethical standpoint (which may not be completely congruent with the legal standpoint, mind you), as an insider in your non-profit organization, I think you owe it to your donors to at least tip the right people off if things are getting unethical. A donor, when giving money to an organization, should be able to take for granted that their money is being used in a responsible and ethical way. They're making certain assumptions about the values of a non-profit organization when they give you their money - and if your organization is not living up to these values, it's completely unfair to take their money. People rely on these values to decide whether an organization is worthy of their money.

While admittedly, this incident itself is a small issue, your description of the executive director makes me think that this incident is only one in a series which you have noticed. I'm sure you can probably come up with other concrete examples which would point to systematic issues inside your organization.

I would speak to a lawyer. While it doesn't seem like the issue is out of hand just yet, I have concerns that these incidents may continue to escalate. Even if you can't do anything now, it's good to have documentation if something large enough to warrant whistle blowing does happen.
posted by Conspire at 10:22 PM on November 29, 2011 [1 favorite]

I, too, would frame this as an ethics issue. From a governance standpoint, your board is ultimately responsible for setting the ethics "tone at the top." Does your organization have a stated ethics policy or code of conduct? If so, is there guidance regarding the reporting of violations? You may not get the resolution you're looking for, but you would have the satisfaction of at least reporting the issue.

Honestly, I wouldn't bother doing the email followup. Do you really think you'll get an answer that way? Perhaps if the Development Guy is more approachable than the ED, you could go to him directly for a straight answer without getting the ED involved?
posted by sillymama at 10:40 PM on November 29, 2011 [1 favorite]

Having worked at a number of nonprofits, I honestly have to say that as shady and snake-like as the Executive Director may actually be, the more probable answer is ineptitude rather than out-and-out deceptive practices. I know, I know, how can anyone act like this and expect people not to think it suspicious? Because they don't care that much or they're wound up in their own drama.

The Exec Dir's job description does not include handling the boring logistics of getting the shipping addresses of winners, ordering the prizes, dealing with the UPS tracking number, writing the nice congratulations letter, etc. Same likely goes for the Director of Development, in their mind, anyway. In fact, it probably has totally fallen through the cracks, with three different departments of one person each assuming that a house-elf of an administrative assistant has taken care of it, despite no-one below director level being authorized to spend the money.

Pressing the issue because you stand to gain is just going to be taken as petty whining. Sorry. It's probably not even a firing offense, it'll just brand you as not-promotion-worthy-ever. Again, sorry. These aren't my views of you, this is what I expect based on my experience with certain types within the world of High Level Leadership in NonProfit Cause Organization.
posted by desuetude at 11:37 PM on November 29, 2011 [2 favorites]

Response by poster: I don't see how the terms of this kind of contest are legally binding--this isn't exactly a contractual agreement, it's voluntary fundraising work.

I see no way for you to pursue this without putting your job at risk and appearing to be greedy to boot. It would be extremely easy for someone to paint this situation as you being a not-team-playing greedy-guts focused more in iPads than raising money for whatever cause your non-profit is dedicated to.
posted by Anonymous at 11:53 PM on November 29, 2011

While Im no lawyer, I do study nonprofit and nonprofit management for my MPA. This seems pretty unethical, giving prizes to fundraising staff, or even money for raising a certain amount is generally not considered a good use of scarce organizational resources. Furthermore, if you were a hired fundraiser, giving a bonus for rasing levels would be unethical.
posted by handbanana at 12:00 AM on November 30, 2011 [3 favorites]

Wow, I totally disagree with the people who are saying this isn't a big deal. They set down in writing that there would be a prize drawing and there hasn't been and that's wrong. I also believe that the value of those prizes is NOT negligible to many (most?) people. Do not listen to those who are trying to shame you for fund-raising in part as a way to get a chance in the prize drawing. You didn't do anything wrong, THEY did.

As to how you approach it, I do think it's a good idea to ask, one more time, in writing, about the drawing, because it is good to give people the benefit of the doubt and it is possible that they have just forgotten about it. It's good to email so you have documented that you asked about it.

As others have said, going to a lawyer doesn't seem worth it from a cost/benefit perspective to you. I suppose you might be jeopardizing your job by speaking out, but if that's really the case, that an employee would be punished for asking their employer to actually abide by the terms of an agreement, then it isn't a great place to work in the first place and you can likely do better.

I DO NOT think you should let this go. That means the employer is reinforced for this behavior, and will continue doing it, and likely escalate. People--and corporations--should be called on it when they do something unethical.

Good luck!
posted by parrot_person at 4:54 AM on November 30, 2011 [1 favorite]

I think you should start saving up the evidence you have against her (including e-mails about the drawing, and personally attacking e-mails, etc.) and, once enough have accumulated to show unethical behavior, take it to the board. I was in a similar position and nobody was speaking out; once enough people spoke out to the person's higher-ups, they investigated because it was just impossible for that many people to be saying the same thing without something actually being wrong.

In the meantime, you really should look for a new job.
posted by DoubleLune at 4:58 AM on November 30, 2011

Unethical, for sure. But I doubt it's worth risking your job over. However: since ED is the devious/probably vindictive type, as a general rule, watch your back. Be careful what you say or write (to ANYONE) that she could take offense at, do your job well, keep your head down and don't give her ANY excuse to focus on getting rid of you. That question of yours about the drawing put you on her radar, and that could be dangerous.....

But in case you do eventually feel the need: do you still have the written notices about the drawing, as well as paperwork noting who qualifies for the drawing? Keep them, far away from her reach.
posted by easily confused at 5:06 AM on November 30, 2011 [1 favorite]

If you know the 6 people and if you want to send an email I would suggest cc ing as many of them as possible. That being said I would speak to the ED guy since he was the one left holding the ball at that last meeting.
posted by Gungho at 6:12 AM on November 30, 2011

I don't see how the terms of this kind of contest are legally binding--this isn't exactly a contractual agreement

Just because it's not a contract doesn't mean it's unregulated. Many if not all states have laws pertaining to contests, separate from any contract law. (Whether Illinois law would apply to this particular contest, I can't say.)

But as a practical matter I'm with the "not worth pursuing" crowd here.
posted by DevilsAdvocate at 8:06 AM on November 30, 2011

I don't see how the terms of this kind of contest are legally binding--this isn't exactly a contractual agreement, it's voluntary fundraising work.

It's a unilateral contract ("if you do x, I'll do y") with performance (poster did x). There's a contract. That would probably be the poster's argument, anyway, but this isn't legal advice. And it's absolutely unethical.
posted by smorange at 8:07 AM on November 30, 2011

Working at a non-profit org with a shady ED is not fun (been there done that) and is not a good long term plan. You need to start documenting your Executive Director's failures. Keep a little journal, send yourself an email (on your personal account) any time you notice something amiss.

The board may not act on one shady drawing, but on a pattern of ethical lapses? They are legally responsible for the organization and having an Executive Director who is mismanaging the org. is bad for them, for the employees, for the donors, and for the clients your org serves.

You may not be "allowed" to talk to the board, but at some point you might need to. Just be sure you're safe when you do it. In a situation similar, our board ended up asking employees to fill out an anonymous survey about our ED to complete his annual review and I took the opportunity to voice my concerns, but if they don't ask for input, you could try to find a way to speak with a board member personally, or even send an anonymous letter/email.
posted by nerdcore at 9:21 AM on November 30, 2011

I've worked on contests for over a decade. It is definitely illegal.

Usually contests have rules and such, and usually any employees would be automatically inelegible.

If you wanted to do something about this, the best route would likely be an anonymous complaint to your states consumer affairs department (or maybe non-profit department, but that's not my area of expertise). Certain states, NY and FL in particular, are super anal about this sort of thing.

If you want to try and soft sell them into doing the right thing. Maybe put together an email showing the legal implications of not issuing the prize and suggest it should be avoided. It's also a PR disaster waiting to happen.
posted by dripdripdrop at 9:33 AM on November 30, 2011

Wow, I totally disagree with the people who are saying this isn't a big deal. They set down in writing that there would be a prize drawing and there hasn't been and that's wrong.

I think everyone pretty much agrees that it's wrong and unethical. But is this particular incident the hill that the OP should die on? Eh, it's not the best contender by itself.

* It's a little unusual for the Board, Staff, and volunteers to all be in the running for the same prize because if a staff member wins, it's easy for it to seem "fixed." And as handbanana points out, if the fundraising you did was part of the job, your eligibility for the prize may not really be kosher according to fundraising ethics anyway.
* Even an impartial party would likely raise an eyebrow at your motivation, if you're pressing this as an ethical issue. 1 in 6 is pretty damn great odds, and the fact that you plan to give your prize away as a gift is not really relevant.
* Non-profits aren't known for speedy administrative processes; two months just isn't really that long after an event to have all the details sewn up. As for the Kindle and iPad not having been purchased yet, that's definitely not proof of anything. For one thing, it's possible the physical devices or the cash to purchase them will be donated by a sponsor. Secondly, it is sometimes considered simpler to actually award a gift certificate for the Named Prize. (Avoids having to pay shipping twice, allows the winner to choose any options like color, permits the winner to get something equivalent if they already have the item advertised as the prize.)
* Putting the Executive Director on the spot about this to the Board is perhaps not the gotcha that you're expecting. She can easily explain it away with a technically-true reply like "oh, unfortunate delay because of blah blah dumb logistical detail blah blah I'll follow up with my staff."
* No-one here can speak authoritatively to whether this is illegal without knowing more about the circumstances and terms for this prize.
* The cost-benefit risk is really not in your favor here, especially if you get fired for accusations about the Executive Director that turn out to be erroneous or unsubstantiated.
posted by desuetude at 10:41 AM on November 30, 2011 [2 favorites]

Mod note: From the OP:

Many thanks for your responses.

As some of you sensed, the prize drawing is just the latest example of unethical behavior by our ED that is usually very hidden. No one who raised money, including me, did it in order to get a prize; we all raised money (as we have before any prizes were ever offered), because it’s a wonderful organization and a cause that’s very important to us. I think my frustration with our entire situation with this ED just boiled up at this latest thing. I have no intention of doing anything about this legally. After working with someone like this for two years you start to doubt anything you believe, so I think I just wanted a reality check that not having the drawing isn’t right.

She’s the textbook example of a boss with Narcissistic Personality Disorder: http://www.behavenet.com/capsules/disorders/narcissisticpd.htm
(she has every single one of those traits). She has turned what used to be a wonderful place to work into a place where the people who threaten her by being competent are demoralized and sort of cowed into submission, and she continually tells people that others have said negative things about them, trying to get us to distrust each other.

I’ve read enough about this to know that she will always “win” — just disagreeing about something casually in conversation can set her into a rage and no matter what happens, she’s willing to lie. There are only 3 full-time and another 7 very part-time employees, and only a few of us have been targeted (and it’s always behind closed doors) so those that haven’t seen that side of her would never in a million years believe it if we even hinted at what she’s really like. The Board is completely smitten with her and only hears from her what’s going on (and again, she lies so we can only imagine what she’s told them about us and anything that happens). They are also pretty uninvolved generally so they’re more than happy to just take what she says as gospel.

I’ve been trying to encourage my co-workers to document things she’s said (she’ll never put anything in writing) but as in many situations like this, the people who are being bullied feel like it’s no use so why bother. So unfortunately, I’m the only person who’s been documenting her behavior and verbal attacks on me (but I’m probably the one who’s been targeted the least of us three), so there’s really not enough to show anyone.

I do appreciate all the suggestions and comments from those of you who have been there. I know in my heart that the only solution is to look for a new job, which just makes me sad.

Thanks again to all.

posted by jessamyn (staff) at 1:28 PM on November 30, 2011

I would risk my job and speak up. (but that's me, not saying you should. ONLY if you can afford to and value principle over paying bills)

I would NOT want to work for a place that can't hold to their word cause that just says something about them and why would I want to contribute any of my time for them???


I'd be an a55hole if I needed to, just yell it out at a meeting. Say "what's up with that?" and get mad.

Be mad. Be angry. I would. I'm angry just reading your post lol.


I'm in a contest right now to win a laptop, and I suspect they're trying to ween out of it too. I'm super pissed.
posted by Like its 1997 at 5:00 PM on November 30, 2011

She’s the textbook example of a boss with Narcissistic Personality Disorder (she has every single one of those traits). She has turned what used to be a wonderful place to work into a place where the people who threaten her by being competent are demoralized and sort of cowed into submission, and she continually tells people that others have said negative things about them, trying to get us to distrust each other.

I feel your pain, I really, really, really do. I just got out of a job after 11 years with a textbook narcissist for an Executive Director. I needed therapy for months afterward to help me re-calibrate how normal professionals are treated, I'm not kidding.

As for looking for another job, don't forget to think strategically about how to best leverage your current position -- work it for important networking connections, or get a title that will let you move up the ladder for your next job, or log those numbers you need to look good professionally (length of time in job, number of campaigns managed or meetings planned or whatever.) If you can manage to not let paranoia totally poison your sense of "normal," it may be worth it to hold your nose for a little while and stay there until you can find a really great next job, rather than just looking for an escape route.
posted by desuetude at 8:32 AM on December 1, 2011