INDIANAPOLIS -- The Penrod Society said Tuesday that a volunteer stole about $380,000 from the arts organization, severely hampering its efforts to provide service to the community.

In a news release, the nonprofit organization, which holds an annual art fair in September at the Indianapolis Museum of Art, said the volunteer had been appointed as an assistant treasurer of the organization.

The man, whose name was not released, stole the money to fund a gambling problem, according to his attorney. Police are investigating the incident.

"There are painful lessons in this crime. There are lessons about trust. There are lessons about nonprofit governance," said James Art, president of the Penrod Society. "It's something you can't even dream of in your wildest dreams."

Art added that the organization cannot fund other arts organizations because of the theft, but it plans to continue to hold the annual art fair.