1.
Misappropriation of Intellectual Property
Legal Basis: U.S. Copyright Law (Title 17, U.S. Code)
- The interviews published by the nonprofit are considered intellectual property owned by the organization.
- Even if published publicly (e.g., YouTube), the content cannot be reused for personal commercial or promotional use without permission.
- Copying the “Projects” tab layout in the app could also be considered a derivative work under copyright law.
Violation:
Title 17 USC § 106 – Exclusive rights of copyright holders
Misappropriating work for personal benefit = IP infringement
2.
Conflict of Interest
Legal Basis: IRS Rules for 501(c)(3) Organizations + Common Law Fiduciary Duties
- As a fundraising associate, he had a duty of loyalty to the nonprofit.
- Using internal knowledge, contacts, or reputation gained through his position to benefit a personal venture is a conflict of interest.
- If he failed to disclose the personal app or its use of org contacts/content, that’s a breach.
Violation:
IRS Form 990 Instructions: Conflict of Interest Policy
Duty of loyalty under nonprofit law and fiduciary standards
3.
Misrepresentation and False Endorsement
Legal Basis: Lanham Act (Trademark/False Endorsement Law)
- If he used interviews or relationships formed through the nonprofit to make it appear that the nonprofit supports or endorses his app, this is false endorsement.
- This misleads the public, especially if the interviewee was shown promoting his app immediately after being featured by your organization.
Violation:
15 U.S. Code § 1125 – False Designation of Origin (Lanham Act)
4.
Violation of Organizational Policy (Internal Rules)
Legal/Contractual Basis: Employee Handbook, Volunteer Agreement, or Code of Conduct
He likely violated internal nonprofit rules such as:
- Unauthorized use of organizational resources (interview content, contact access)
- External project conflicts (developing a competing or confusing project)
- Lack of transparency or failure to disclose side ventures
Even if these policies weren’t formally written, common nonprofit governance principles still apply.
Violation:
Breach of internal policy or agreement (even verbal)
Standard nonprofit ethics codes (e.g., Association of Fundraising Professionals [AFP] Code of Ethics)