Board Members “Investing” in a Fundraiser

My nonprofit is holding a special event that will generate a lot of revenue and a decent amount of net profit, but we lack the cash to get started. The organizer of the event proposed allowing some past donors to "invest" in the event, and then split the net profits with the nonprofit. The board approved him reaching out to potential "investors." Several Directors, including the Board Chair, "invested" after the vote, and all are directly involved in planning the event including spending decisions.

This feels like there might be conflicts of interest, but in reality, it is transparent, and they have an incentive for the event to make as much as possible. But I welcome your thoughts.

submitted by /u/TomInPhxAZ
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