Former General Secretary of the IFA Pat Smith wants half of his two million euro severance package to go to charity.
However, the Association says Mr Smith demanded the money and is trying to cover it up.
The IFA says Smith didn't stand down last week and was in effect, fired, amid controversy over his pay.
IFA President Eddie Downey has also resigned over the issue.
The dispute is now likely to head to court as the IFA looks to unpick the arrangement.
Meanwhile the association must also get to trips with its leadership vacuum - which leaves it without either a President or a General Secretary.
Our political correspondent Gavan Reilly reports:
