I regularly receive emails from nonprofit board members who can't seemingly break the "code" to get the officers of their board to behave differently. In most cases the issue relates to bad process, leaders who are intransigent, and other highly irritating, controlling and unproductive behaviors. But sometimes an email cites incidents that may actually be illegal (e.g. theft). What to do?
Well, as evidence indicates with this nonprofit created by upstate New York prison guards, you go outside the organization to those who may have legal authority. And, yes, misdeeds were found but labeled as not illegal but the consequence: a nonprofit that has closed its doors.
The moral of the story: when the leadership won't change its behavior, the only recourse may indeed be to go to higher authorities. For more on the story, go here.