Minnesota Attorney General Keith Ellison announced today that his office has reached a civil settlement to shut down a Blaine-based nonprofit — MN Fundraising Initiative (“MNFI”) — over allegations that it was not operated for any charitable purpose but instead operated as a staffing agency to misclassify hundreds of employees as “volunteers” who staffed concession stands at sports stadiums and other venues in the Twin Cities.

“Charities can’t do an end-run around employment law by abusing their nonprofit status to save on labor costs. Workers who are misclassified do not receive some of the most basic protections under the law, and that loss of protections hurts us all…I’m pleased MNFI has discontinued its operations, and I hope that this outcome sends a strong, clear message to any other charities running this kind of scam that it is illegal and my office will not tolerate it.” – AG Ellison