Donors around the country are asking themselves that since The Washington Post published a series of articles reporting that more than 1,000 nonprofit organizations have reported a “significant diversion” of assets since 2008. A significant diversion is one that is more than the lesser of $250,000 or 5% of an organization’s gross receipts or total …
Posts Categorized: Board
Horror Stories from the Trenches
With Halloween quickly approaching, now is the time to face your non-profit demons. Do you consistently lose sleep worrying whether your non-profit is operating lawfully? Do you ever wonder whether you should be doing more as a director? Stop burying your head in the sand. Instead join Arthur Rieman, managing attorney of The Law Firm …
Choose Grant Recipients Wisely
How carefully does your nonprofit’s board choose grant recipients? If you don’t know, here is a wake-up call. One Fund Boston, the 501(c)(3) established to assist victims and families affected by the Boston Marathon bombings, recently approved payment of $480,000 to an individual who is now charged with defrauding the fund. There’s good news for …
Another View on Nonprofit Effectiveness
Has all the recent news about how to measure nonprofit effectiveness left your charity confused? The Direct Marketing Association Nonprofit Federation, a national association of charities and their direct marketers, thinks it has the answer – a set of fundraising principles. The Federation based these principles on how it believes “legitimate” charities conduct fundraising. It …
Modifying a Nonprofit's Original Mission
How does a nonprofit stay within its original mission but remain relevant? Petersen Automotive Museum is trying to do just that. It is liquidating nearly 1/3 of its 400 classic cars in order to finance a major reconfiguration of the organization, including a greater emphasis on motorcycles and French art deco vehicles. According to a …
Hershey Trust Settlement Shocks Many, Has a Lesson for All
Two years ago, the Pennsylvania Attorney General began an investigation into the $9 billion Hershey Trust, which operates a prominent residential facility for disadvantaged youth. The investigation started after the trust made multi-million dollar purchases of a golf course and an adjacent market. Allegations of inappropriate expenditures followed, claiming that board members received excessive compensation …