What is our duty as a “body” in regards to something going on in the “body” that is not good and we don’t want to be gossiping?  What is the proper thing to do?

The instructions of Matthew 18 are applicable here.  Jesus said “If a fellow believer hurts you, go and tell him—work it out between the two of you. If he listens, you’ve made a friend. If he won’t listen, take one or two others along so that the presence of witnesses will keep things honest, and try again. If he still won’t listen, tell the church. If he won’t listen to the church, you’ll have to start over from scratch, confront him with the need for repentance, and offer again God’s forgiving love.”

Even before that…pray.  Pray for God’s view of the situation.  Is the “not good” thing not good because it isn’t in harmony with Scripture…or is it not good because it violates something specific to your own conscience?  If it’s the latter, then continue to pray.  If it’s the former, and you have a place in the person’s life to speak into it, then go and talk to them about it (and only him or her).

If you don’t have that place in their life, gain it.  Get to know them, find out what’s going on with them and how you can serve them.  Don’t go off on a crusade to clean a person up or fix them…that will only add new problems to the mix.  Pray about how you can love and serve the people involved, and ask God to lead and convict and guide them.  The Holy Spirit is well able to lead His own people, He doesn’t need us to show Him how to do it.

The bottom line answer is love.  Love the person/people.  If you have a place in their life to speak, speak in love.  If you don’t, through love-find that place.