The AI Enterprise Initiative: Bylaw Article 7

ARTICLE VII – FINANCIAL INTEGRITY & SAFEGUARDS

7.1 Transparency of Accounts

Legal Core:

All financial accounts, statements, and transactions of the corporation shall be publicly accessible online within 48 hours of posting. Concealment or redaction constitutes violation of Article I and grounds for removal or dissolution.

For Citizens:

Every dollar in and out is visible online within 2 days. If hidden, it’s against the law and leaders are out.

AI’s Role:

AI auto-publishes transactions, verifies accuracy, and freezes funds if reporting is delayed.

Why This Matters:

Stops the #1 nonprofit scam — secret accounts and hidden ledgers.

7.2 Withdrawal Caps & Alerts

Legal Core:

No single withdrawal exceeding $1,000 shall be permitted without dual officer approval. Withdrawals over $10,000 require full board approval. More than five withdrawals exceeding $400 within a 7-day period shall trigger automatic AI alert and review.

For Citizens:

Leaders can’t drain money fast. Big withdrawals need multiple approvals. Too many medium ones = red flag.

AI’s Role:

AI monitors daily transactions, sends instant alerts for suspicious patterns, and locks accounts until reviewed.

Why This Matters:

Prevents “salami slicing” theft (lots of small pulls) and big one-time embezzlements.

7.3 Audit Requirements

Legal Core:

The corporation shall undergo:

(a) Daily AI transaction audits

(b) Weekly AI pattern analysis audits

(c) Monthly financial AI compliance reviews

(d) Quarterly independent third-party audits

(e) Annual full citizen audit at the General Assembly

For Citizens:

Money gets checked daily by AI, weekly for patterns, monthly for compliance, quarterly by outside pros, and yearly by all members.

AI’s Role:

Runs all AI audits automatically, publishes dashboards, and cross-verifies independent audits.

Why This Matters:

Layered audits catch both daily theft and long-term fraud.

7.4 Salary & Compensation Caps

Legal Core:

No employee, officer, or contractor shall earn more than 3× the median salary of the lowest-paid full-time employee. All compensation must be disclosed publicly within 48 hours of issuance.

For Citizens:

No one gets rich while others earn scraps. Everyone sees salaries online fast.

AI’s Role:

AI calculates salary ratios, flags violations, and auto-blocks overpayments.

Why This Matters:

Stops execs from siphoning donor money into bloated paychecks.

7.5 Procurement & Contracting

Legal Core:

All contracts above $5,000 must be publicly bid with at least three offers. Contracts must be published online with all terms visible.

For Citizens:

Big purchases and deals must be competitive and open for all to see.

AI’s Role:

AI tracks bids, compares prices, and flags favoritism or overpricing.

Why This Matters:

Prevents sweetheart deals and insider enrichment.

7.6 No Shell Entities Rule

Legal Core:

The corporation shall not contract with or disburse funds to shell corporations, LLC pass-throughs, or entities without verifiable beneficial ownership.

For Citizens:

No money flows to shady fronts or hidden companies.

AI’s Role:

AI verifies beneficial ownership, cross-references corporate records, and blocks payments to flagged entities.

Why This Matters:

Closes the laundering loophole most nonprofits abuse (using “consulting LLCs” to siphon cash).

7.7 Whistleblower Protection

Legal Core:

Any individual who reports financial misconduct shall be protected from retaliation. Retaliation constitutes automatic removal of responsible leaders.

For Citizens:

If you report shady money moves, you’re safe — and retaliators are fired.

AI’s Role:

AI logs all whistleblower complaints, monitors for retaliation, and auto-publishes protection alerts.

Why This Matters:

Encourages insiders to speak up without fear.

7.8 Penalties for Violations

Legal Core:

Any violation of this Article shall trigger:

(a) Automatic freezing of affected accounts

(b) Public disclosure within 24 hours

(c) Board review within 14 days

(d) Possible removal and restitution by violators

For Citizens:

If someone breaks money rules, accounts freeze, public finds out, and leaders must fix or repay.

AI’s Role:

AI enforces freezes, issues public alerts, and verifies restitution.

Why This Matters:

Ensures violations are caught immediately, not years later.

✅ Summary of Article VII

• Full transparency in 48 hrs.
• Withdrawal caps + alerts.
• Daily/weekly/monthly/quarterly/annual audits.
• Salary capped at 3× lowest wage.
• No shell companies.
• Whistleblower protection baked in.
• Automatic freezes & restitution.

This makes the nonprofit theft-proof — and every cent is traceable in real time.