Embezzlement: In California, that's a class B felony with 5-20 years in prison, pay back the money you stole, and up to a $15,000 fine.
And it is NOT just a tax matter. Nobody makes this "mistake".
Stealing is stealing, and if you don't understand that stealing from your own charitable foundation is a crime, then you are not fit to run it. This is the fundamental fiduciary duty of the officers running a foundation. I just settled a million dollar Living Trust yesterday, so I understand fiduciary duty! (It balances to the penny and every expense is accounted for.)
