What is the name of your state (only U.S. law)?
Texas
I am on the board of a non profit orginization. I recently found out the treasurer had embezzled about $2,000. When confronted, he repaid the money. He is still treasurer of the NPO. If I do not report this, can I be held responsible or am I liable for anything for not reporting this?
Are you an OFFICER of the organization? Is it a registered non-profit?
This sounds like a felony.
You can report this to the police if you want. At the very least bring the matter up to the FULL board for consideration as you do NOT want to be the sole person with knowledge and left holding the bag of blame should this person get charged and you are thought an accomplice.
I suspect that you would not be held accountable if your board accepted this "crime" as a civil debt. But, if you leave this person in a position of trust over the money, I suspect that you and others on the board could be held liable at least civilly should any damage or loss to the organization occur as a result of this officer remaining in his position.
If it were me, I would immediately bring it up to the executive board (usually a body of the highest officers - the ones whose butts are on the IRS documents), then to the full board of directors. If the person did, indeed, EMBEZZLE funds and was not removed from their position, I would tender my resignation publicly and immediately so as to do all I could to distance myself from the matter in case it comes back to haunt them.