The Brewster American Legion Post is supposed to stand for veterans and community. Instead, it’s struggling under financial mismanagement, lack of transparency, and questionable leadership. No elections in over three years. Less than $30 in the account as of August. Audit points ignored for over a year. Diverted funds, threats, and poor leadership have turned this once-proud organization into a shadow of what it should be. This isn’t just mismanagement; it’s a crisis.

Breaking the Rules

Financial mismanagement is at the center of the chaos. The general manager is also handling the books, which violates American Legion rules and state laws. RCW 24.03A.020 outlines the duties of directors and officers to ensure transparency and accountability. That’s not happening here.

In July and August, the board voted to pull funds specifically donated for scholarships to cover employee salaries. This is a direct violation of IRS regulations for nonprofits, which mandate that donated funds must be used for their intended purposes. Diverting restricted donations not only violates donor trust but breaches RCW 24.03A.040, which requires officers to uphold the lawful and ethical management of funds. The American Legion Financial Management Policy also prohibits the misuse of restricted funds.

Funds meant for scholarships and veteran programs are being diverted to cover salaries. Gambling money is being used to pay bills, which is both unethical and illegal. Credit card tips are pulled from the till instead of being reported properly. These actions break IRS regulations for nonprofits and violate the American Legion Financial Management Policy. If the post continues to operate primarily as a bar and restaurant instead of focusing on its mission to support veterans, it risks losing its 501(c)(19) tax-exempt status. IRS rules require that the majority of funds benefit veterans and related programs; otherwise, the organization may be reclassified as a 501(c)(7) social club, which comes with stricter limitations on tax exemptions and how funds are used.

Last June (2023), the General Manager and Post Commander hid a letter from the Washington State Department of Revenue. This letter notified the post of its pending loss of tax-exempt status. They informed the board only five days before it was set to take effect. Then, they asked the board for help. This letter revealed that the General Manager had been running “Stockyard Cafe II” out of the building. This situation further complicated the post’s nonprofit compliance. It raised serious questions about leadership’s transparency and priorities. If these issues aren’t corrected, the post risks losing its 501(c)(19) status. Perhaps running a restaurant wasn’t such a grand idea after all.

Ignored Audit Points

Last year’s audit flagged numerous problems, including unreported tips, lack of active member verification, and questionable use of funds. The list of issues is too numerous to detail here. And while cash tips going unreported is one thing, one has to wonder what the IRS might think if they started matching credit card receipts to tip declarations on W-2s. None of these have been resolved. Workers are allowed to pull tips directly from the till, including those left on credit cards. There is no verification list of active members, auxiliary members, or Sons of the Legion. This leads to further issues when non-members, such as spouses, are brought in to drink. Ignoring these basic requirements shows a complete lack of oversight. What’s next? A free-for-all at the bar?

Threats and Silence

Retaliation against whistleblowers has become a reality at the Brewster Legion. On the same night and after a membership meeting about the post’s with regional American Legion representatives in August 2024, the Post Commander and two board members met privately to permanently expel another board member. This member had blown the whistle to the American Legion Department of Washington State over various issues. His actions, including exercising his freedom of speech during national election events, had previously been approved by the board, with an audio recording from a June meeting capturing board members and Post Commander explicitly stating they had no problem with his free speech and even encouraging him. This retaliatory behavior demonstrates a blatant disregard for fairness and transparency. Worse yet, they did not follow their own bylaws, which require a membership vote, a hearing, and notification of the membership before any such decision could be made.

The local Post Commander’s response to criticism has been threats and suppression. Members have been ordered not to publish or post anything online, with threats of retaliation for those who speak out. Phrases like “thin ice” and “shaky ground” have been used to intimidate whistleblowers. This behavior violates RCW 42.30, Washington’s Open Public Meetings Act, which mandates transparency in organizations. It also goes against whistleblower protections and the First Amendment rights of members. Transparency isn’t optional; it’s required by law. Apparently, some leaders think running a Legion post is akin to ruling a kingdom.

Neglecting Veterans and Programs

This isn’t just about breaking rules. It’s about neglecting the mission. The board’s decision to raid scholarship funds meant for students; specifically donated funds; to cover salaries is indefensible. Programs meant to support veterans are neglected or nonexistent. Younger veterans are dismissed as “whiney narcissists” instead of being welcomed and engaged. Instead of helping veterans, leadership focuses on running a failing bar and restaurant. This diverts resources away from the community.

Nasty emails sent to the Ladies Auxiliary have split the post further. As a result, the Auxiliary holds meetings elsewhere. These divisive tactics have caused irreparable harm to unity within the post. Unity, it seems, is less important than ego.

A Broken System

No elections for over three years mean there’s no accountability. The post’s leadership operates unchecked, ignoring the bylaws meant to ensure fairness and transparency. Meetings lack proper minutes. Board members have resorted to taping meetings to hold the Post Commander accountable for not following decisions voted on or statements he has made. RCW 24.03A.020 and the American Legion’s own policies demand regular elections and open governance, yet leadership continues to ignore these requirements. What’s the point of bylaws if they’re treated like suggestions?

The Post Commander has repeatedly told younger veterans, both in public and in emails, “you don’t understand how it works.” This dismissive attitude has been so off-putting that it leaves one wondering if it’s actually the Post Commander who doesn’t understand how things work; like following basic laws, organizational rules, and ethical guidelines.

Hope for Change

We’ve received numerous documents and firsthand accounts detailing these issues. While we’re choosing not to publish every detail, the problems are undeniable. The Legion must take immediate steps: hold elections, conduct an independent audit, and commit to transparency. Without these changes, the organization risks collapse and potential legal consequences.

This isn’t just about Brewster’s Legion. Other veterans’ organizations, like local VFW posts, face similar challenges. However, the Brewster community deserves better; so do its veterans. Leadership must act now to restore trust and fulfill the organization’s mission before it’s too late.

References

• RCW 24.03A.020: Duties and responsibilities of directors and officers.
• RCW 42.30: Washington’s Open Public Meetings Act.
• IRS Regulations for Nonprofits: Requirements for maintaining tax-exempt status and proper use of funds.
• American Legion Financial Management Policy: Guidelines for ethical financial practices.

Note from the Editors

One of our authors, a Legion member, originally wrote an article about these issues. To avoid a conflict of interest, we declined to publish it immediately and sought verification from other accounts. Only after ensuring transparency and accuracy did we decide to move forward with publishing this piece. Transparency matters; both for us and for the organizations we hold accountable.