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How do we hold nonprofit water company accountable?

Your Legal Questions Answered

How do we hold nonprofit water company accountable?

If our water company is a 501(c)(3) organization and has been caught in embezzlement twice, and breaking nonprofit laws, our bylaws and company policies, how do you hold them accountable? Our state attorney general’s office says they have no say in the company’s governance and if we want to do anything we have to hire an attorney. An attorney wants over $5000 to take the issue. Any ideas? We are a very low-income subdivision.

You don’t say whether you are a voting member of this company, but from your statement that the governing group has broken “our” bylaws, it looks as though you might be a member who has legal rights in the governance.  If that is the case, you should try to organize the other members to see if you can throw the bums out at the next election of directors or at a special meeting that you can call to do so.

If you are not a voting member, your options are more limited.  If you have evidence of further embezzlement, the attorney general or the local prosecutor should have an interest.  Their job is to enforce the criminal law and they will usually do so if the amount of theft is substantial.

Without that type of evidence, you may need to hire a lawyer for strategy on other issues.  Unfortunately, the legal system does not work well for those of limited economic means, but if a lot of members can pool their funds, it may be possible to get paid help.  It also may be possible to get pro bono help from an attorney who has an interest in this type of issue or from a public interest law firm in your area that is able to help low-income groups with legal issues.  If your water company is a utility governed by a governmental commission, you may be able to take your complaints there.   If you are a significant block of voters, you may be able to get some help from local political leaders.  If you are lucky enough to still have a local newspaper or a nonprofit news source, you may be able to get media coverage sufficient to cause changes in the company.

If your water company is the only source of water for your community, you probably don’t want to just walk away and forget the problems.  But remember that there is power in numbers, and organizing is more dependent on effort than on money.  Don’t try to do it all yourself.  The more people you get working together, the more ideas you will have, and the more you can accomplish.

Tuesday, November 5, 2024

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