Minnesota Attorney General Keith Ellison announced a settlement with the Central Minnesota Community Empowerment Organization (CMCEO), a charity in St. Cloud, Minnesota. The settlement, known as an Assurance of Discontinuance, addresses alleged governance deficiencies at the nonprofit.
CMCEO is a tax-exempt organization supporting immigrant and refugee communities with programs like job training and housing support. The Attorney General’s Office (AGO) investigation revealed governance issues, including conflicted transactions involving nonprofit leaders and their family members without board approval.
The AGO identified areas for compliance improvement in contractor designations, financial controls, board procedures, and registration. CMCEO has cooperated with the AGO's investigation and taken steps to improve compliance voluntarily.
Attorney General Ellison stated, “It is important that all charities follow Minnesota laws intended to protect charitable assets and promote public trust, especially when those charities serve marginalized communities. CMCEO fell short of these obligations, leaving its assets vulnerable and preventing public and regulator transparency. I hope that today’s settlement will lead to the correction of these governance issues and a renewed focus on CMCEO’s mission of serving refugees in Minnesota.”
The settlement does not prevent future claims against individuals. The Charities Division investigated under Minnesota's civil nonprofit corporation laws requiring strict governance standards.
Minnesotans can submit complaints about nonprofits on the Attorney General's website or contact the office via phone.