Embezzlement occurs when someone wrongfully takes or misappropriates funds entrusted to them. This is a serious crime in Michigan, and when it involves a non-profit organization, the consequences can be even more severe.
Non-profit organizations often handle donations and other funds meant for charitable purposes, making the misuse of these funds particularly damaging. If you represent a non-profit organization, you need to understand the risk that an embezzlement accusation poses for you.
The legal penalties for embezzlement
Under Michigan law, the penalties for embezzlement depend on the amount of money stolen. The more significant the sum, the more severe the consequences. Michigan categorizes embezzlement crimes based on the value of the property involved:
- Less than $200: Embezzling less than $200 can result in a misdemeanor charge. The potential penalty may include a fine of up to $500 or three times the amount embezzled, whichever is greater, and a jail sentence of up to 93 days.
- Between $200 and $1,000: This range elevates the crime to a more serious misdemeanor. The penalty can include a fine of up to $2,000 or three times the amount embezzled, along with a potential jail sentence of up to one year.
- Between $1,000 and $20,000: Embezzlement involving amounts within this range can result in a felony charge. Penalties may include a fine of up to $10,000 or three times the embezzled amount, and a prison sentence of up to five years.
- More than $20,000: Embezzling more than $20,000 is a serious felony. This offense can lead to a fine of up to $50,000 or three times the embezzled amount, and a prison sentence of up to 10 years.
Considering the steep consequences of embezzlement in Michigan, it is important to always document your handling of money on behalf of your non-profit organization.
The personal consequences for non-profit organizations
Beyond legal penalties, those charged with embezzlement often face personal and professional consequences. These can include the loss of reputation and difficulty finding future employment. Additionally, Michigan law allows non-profits to seek restitution, which may require you to repay the stolen funds.
The penalties for embezzlement in Michigan quickly add up when you consider legal consequences, NPO restitution policies and long-term reputation implications. It is important to spare no effort in defending your innocence if you stand accused of embezzling from a non-profit organization.