Officials with Friends Central School in Wynnewood, Pennsylvania sent an alert to families to let them know of the situation.
A letter sent home reads in part:
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"Earlier this academic year, we received an allegation of sexual misconduct relating to events that were reported to have occurred some 20 years ago."
The teacher in this incident was also an ordained minister and board member of Interfaith Philadelphia since 2017, officials say.
Interfaith Philadelphia said on Tuesday she no longer serves on the board and there are no "concerns about misconduct" relating to her role.
Action News attempted to contact the teacher but did not receive a response.
Lower Merion police say they received a ChildLine referral about the allegations against the teacher.
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Friends Central School officials say, "As soon as we received this report, we immediately notified the authorities and immediately placed the teacher on administrative leave. The actions of this teacher are serious, distressing, and absolutely unacceptable."
Neighbors told Action News that they feel the same way.
"You're dropping your child off and you hope they are safe. It's supposed to be a safe environment for children," said Linda Minier of Springfield.
No official charges have been filed against the former teacher and she has not been identified by authorities.