And given teh smallish world of nonprofits, you can bet the story will go around about boith the person crappy tude and the management's shitty treatment.

Oh, I'm not disagreeing with that; I hope it does end up biting them in the ass.

But that doesn't change my opinion that the behavior of I's co-worker, though apparently satisfying to her, is childish, selfish, and will end up hurting the people around her just as much, if not more than, management itself. And it makes her look bad, possibly not as valuable in a place where ability isn't taken into account, but it's a matter of personal pride and professional ethics, to me.