The State Bureau of Investigation's Financial Crimes Unit has opened an investigation into Connectinc, a nationally honored nonprofit that links the jobless with support services to help them get back on their feet.
The unit is also investigating Connectinc's president, Jackie Savage, said Jennifer Canada, a spokeswoman for the N.C. Department of Justice.
The investigation began Feb. 24 and is ongoing.
Connectinc is based in Battleboro, 70 miles east of Raleigh.
Savage did not return a call seeking comment on Tuesday.
Kevin Zimmer, Connectinc's interim executive director, declined to comment.
David Bruton, the chairman of the nonprofit's board, said he has been instructed not to comment on the investigation until it is complete.
Connectinc was founded in 1999 as a way to support welfore recipients transition back to the workforce.
Today it has about 50 employees.
The organization receives money from a number of sources, including contracts with the state, the Golden Leaf Foundation and the J.B. Reynolds Foundation.
Since the investigation was opened, Connectinc was placed on the Office of State Budget and Management's list of organizations who've had their funding suspended.
Connectinc has spend more than a decade working to help displaced workers. Last year, the nonprofit launched a new project called the Benefit Bank of North Carolina.
The project uses technology to hook people up with the benefits they're missing and trains counselors in organizations to use the technology.
In 2004, Connectinc received a $500,000 grant from the Annie E. Casey Foundation of Baltimore.
The award is part of the foundation's "Families Count: The National Honors Program," which recognizes the best family health programs in the U.S.