'Lining your own pockets' violates federal and state non-profit laws...
Mark Schacht - Divemaster
January 28, 2003 at 19:05:25
"Self-dealing" is what it's known as in the trade, and of course similar practices are not limited to non-profits (as Enron showed us). However, tax-exempt organizations are public charities, operated for the good of the general public, not for the enrichment of individuals, no matter how important they may be to the long-term success of the organization.
If officials and/or board members of non-profits want to maximize their personal enrichment (beyond generous salaries and other perks), they have a duty NOT to do so by "self-dealing". If they were honest about this being their goal, the more honorable (and legal) way to go about it is to give up non-profit status and go into the for-profit world (where their only concerns will be securities fraud laws, etc.).
Of course, if they're as avaricious as Ken Lay and others, that'll be no solution...They'll still get bagged!!