Legacy Haven Academy Whistleblower Policy

Article I: Purpose

Legacy Haven Academy Foundation (the "Academy") is committed to fostering an environment of integrity, transparency, and accountability in all aspects of its operations, including its educational programs for orphaned and homeless youth in Mohave County, Arizona. This Whistleblower Policy (the "Policy") establishes procedures for employees, volunteers, board members, contractors, and other stakeholders to report concerns about potential violations of law, regulations, Academy policies, or ethical standards without fear of retaliation. The Policy complies with federal requirements under the Sarbanes-Oxley Act (SOX) of 2002, which prohibits retaliation against whistleblowers reporting financial misconduct in nonprofit organizations (Council of Nonprofits, n.d.), and Internal Revenue Service (IRS) governance best practices encouraging such policies for tax-exempt entities filing Form 990 (Council of Nonprofits, n.d.). It also aligns with Arizona Revised Statutes (A.R.S.) § 23-1501, as updated in 2024, which expands protections for reporting unlawful activities, fraud, gross mismanagement, unsafe conditions, discrimination, harassment, or wage theft across all employers, including non-profits (Weiler Law PLLC, 2025). No specific whistleblower requirements exist under Mohave County ordinances for non-profits, so this Policy adheres to state and federal standards (Mohave County, n.d.).

The Academy views good-faith reporting as a critical component of its mission to promote values such as honesty, integrity, and selfless service (Legacy Haven Academy, n.d.b). This Policy encourages early detection and resolution of issues to protect the Academy's tax-exempt status under Section 501(c)(3) of the Internal Revenue Code and maintain public trust (Internal Revenue Service, 2025a).

Article II: Scope

This Policy applies to all directors, officers, employees, volunteers, contractors, vendors, donors, and students or participants in Academy programs who become aware of potential misconduct. It covers reports of:

• Violations of federal, state, or local laws or regulations, including tax laws applicable to non-profits (e.g., IRS Section 4958 on excess benefit transactions) (Internal Revenue Service, 2025c).
• Financial irregularities, such as fraud, embezzlement, or misuse of funds (Council of Nonprofits, n.d.).
• Gross mismanagement, conflicts of interest, or violations of fiduciary duties (Weiler Law PLLC, 2025).
• Unsafe working or learning conditions, discrimination, harassment, or wage theft (Weiler Law PLLC, 2025).
• Violations of Academy policies, including those on ethics, child safety, or program integrity (Legacy Haven Academy, n.d.b).

Reports may involve current, former, or prospective activities. This Policy does not protect reports made in bad faith or for personal gain, nor does it authorize disclosure of privileged information (e.g., attorney-client communications) or trade secrets (Blue Avocado, 2019).

Article III: Reporting Procedures

Individuals are encouraged to report concerns promptly through one or more of the following channels:

1. Internal Reporting:
   • To a direct supervisor, the Executive Director, or the Board Chair (if the concern involves the Executive Director).
   • Via anonymous written submission to the Academy's designated Compliance Officer (contact: compliance@legacyhavenacademy.org) or a secure drop box at the main office in Mohave County.
2. Anonymous or Confidential Reporting: Reports may be submitted anonymously where feasible, with the Academy committing to maintain confidentiality to the extent possible under law (Weiler Law PLLC, 2025). For confidential reports, only those with a need-to-know will access identifying information.
3. External Reporting: If internal channels are inappropriate (e.g., due to involvement of leadership), reports may be made directly to external authorities, such as:
   • IRS for tax-exempt compliance issues (Form 13909) (Internal Revenue Service, 2025b).
   • Arizona Attorney General's Office or Department of Labor for state law violations (Weiler Law PLLC, 2025).
   • Local law enforcement or child protective services for safety concerns involving youth (Legacy Haven Academy, n.d.b).

No retaliation will occur for good-faith reports, even if the concern is not substantiated after investigation (Council of Nonprofits, n.d.). Employees and volunteers must report concerns within 180 days of awareness to align with federal and state statutes of limitations (Zuckerman Law, 2025).

Article IV: Protection Against Retaliation

The Academy strictly prohibits retaliation against any individual for making a good-faith report or participating in an investigation, as required by SOX §806 and A.R.S. § 23-1501 (Council of Nonprofits, n.d.; Weiler Law PLLC, 2025). Retaliation includes, but is not limited to:

• Termination, demotion, or negative performance evaluations.
• Reduction in pay, benefits, or hours.
• Isolation, exclusion from opportunities, or harassment (Weiler Law PLLC, 2025).

Violations of this protection will result in disciplinary action, up to and including termination. Individuals experiencing retaliation should report it immediately using the channels above. Remedies may include reinstatement, back pay, emotional distress compensation, and attorney's fees, per Arizona law (Weiler Law PLLC, 2025). The Academy will provide annual training on this Policy to all covered individuals, as mandated by recent Arizona updates (Weiler Law PLLC, 2025).

Article V: Investigation Process

All reports will be investigated promptly and impartially by the Compliance Officer or a designated third-party investigator to ensure objectivity (e.g., if a conflict exists) (Council of Nonprofits, n.d.). The process includes:

1. Acknowledgment of the report within 5 business days.
2. Initial assessment to determine validity and scope.
3. Fact-finding interviews, document review, and evidence collection, conducted confidentially.
4. A written report with findings and recommendations within 30 days (extensions possible for complex cases).
5. Corrective actions, such as policy revisions or personnel changes, implemented as needed.

The reporter will receive updates on the investigation's progress without compromising confidentiality. Records will be maintained for at least 3 years, per IRS recordkeeping guidelines for non-profits (Internal Revenue Service, 2025c). If the investigation reveals criminal activity, it will be reported to authorities.

Article VI: False Reports and Non-Compliance

Knowingly false reports may result in disciplinary action. However, good-faith reports, even if mistaken, are protected. Failure to report known misconduct may itself violate Academy policies and lead to discipline.

Article VII: Policy Administration and Review

The Board of Directors approves this Policy, with annual review by the Compliance Officer to ensure ongoing compliance with evolving laws. The Policy will be distributed in employee handbooks, volunteer orientations, and board packets, with acknowledgment required (Blue Avocado, 2019).

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