Question

The owner of a 501.c.3 nonprofit organization uses funds for funeral expenses associated with the death of the founder (The minister), is this a misappropriating nonprofit funds?

The mission is to sell books, audio recordings, and videos of the teachings of the founder (Minister)

Answer 1

A non profit organisation has two types of funds

1. restricted funds

2. unrestricted funds

Restricted funds must be typically used for those purposes for which they are donated for.

Unrestricted funds as the name explains not restricted for any purpose and they can be typically diverted for making operating expenses.

as the main mission of the NPO is to  sell books, audio recordings, and videos of the teachings of the founder any type of unrestricted funds can be used for any those purposes and any those related to ancillary activities of those operating works but can not be used for the funeral expenses of founder.