Broken Trust: Minnesota Nonprofit President Uses Donor Money As Personal Piggy Bank!
A Brainerd nonprofit leader spent $156,000 in donations on jet ski rentals and credit card payments—Minnesota’s Attorney General steps in. 🌐 #News #BrainerdMN #Minnesota #Crime
ST. PAUL, MN – In a shocking misuse of public trust, a settlement has been reached after the president of a Brainerd, Minnesota nonprofit used charitable funds for personal indulgences, including a jet ski rental and credit card payments. Minnesota Attorney General Keith Ellison recently announced the settlement, which exposes financial misconduct at Northern Lakes Rescue, a group dedicated to rescuing and rehabilitating animals.
Settlement Reached Between Northern Lakes Rescue and the Attorney General
Minnesota Attorney General Keith Ellison’s office announced that it has reached a settlement with Northern Lakes Rescue (NLR), a nonprofit founded in Brainerd with the mission to “rescue, rehabilitate and rehome animals in crisis.” Founded in 2017 by Shannon Steele, NLR has been under scrutiny after an investigation revealed serious financial mismanagement.
The investigation, led by the Charities Division of Ellison’s office, uncovered that Steele had misappropriated approximately $156,000 of the nonprofit’s funds, spending them on personal expenses that had nothing to do with the organization’s mission.
Illegal Spending Uncovered
The investigation detailed numerous questionable expenses, including a jet ski rental, personal credit card payments, car insurance, and cash withdrawals. These findings painted a clear picture of misuse, as Steele allegedly used the nonprofit’s money for her own benefit over a period of time.
The misuse of such a large sum has left many Minnesotans stunned, particularly those who donated in good faith, trusting that their money would go toward helping animals in need.
Consequences for Steele and NLR
As part of the settlement, Steele has been banned from ever serving as a director, officer, or employee at Northern Lakes Rescue. This action is meant to prevent further abuse of power within the organization.
Additionally, NLR has been ordered to conduct an internal audit of its finances from at least 2021 to the present. This audit is intended to root out any other potential financial misconduct and to ensure that the organization’s future finances are handled responsibly.
NLR must also make several structural changes as part of the settlement, including:
- Ensuring its board has full access to the nonprofit’s financial accounts.
- Providing fiduciary training to all officers and directors.
- Submitting documentation to the Attorney General’s office to prove compliance with the terms of the settlement.
Restoring Donor Trust
Attorney General Keith Ellison made a strong statement regarding the case, expressing his disappointment with how donor funds were misused: “Minnesotans are generous people and expect the hard-earned money they donate to charity will be used for the causes they believe in. It’s disturbing that Northern Lakes Rescue’s founder and former president instead misused charitable assets, and equally disturbing that the board of directors allowed this to happen.”
Ellison’s office is committed to ensuring that nonprofits in Minnesota are held accountable and that donor trust is restored. As NLR works to rebuild its reputation, it must now focus on maintaining transparency and accountability to its supporters, who expected their contributions to be used for saving animals, not personal luxuries.
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