… is Fund-amentally Dangerous!
In the ever-increasing scrutiny over the transparency of nonprofit accounting, the California State University system is learning a lesson about improperly mixing nonprofit funds with private funds.
In an August 25, 2010 article in the Los Angeles Times by Carla Rivera, “A faculty group said it has found evidence that California State University officials are improperly depositing public funds into the accounts of nonprofit campus foundations and have failed to correct the problem despite warnings from auditors.” The article entitled “Cal State May Be Mixing Public and Private Funds in NonProfit Foundations,” it is stated that, “Mingling taxpayer dollars and private funds in foundation accounts may be illegal because the organizations are exempt from the state’s open records laws…”
More than ever, non-profit organizations and foundations are being investigated to expose those that are credible and those that utilize suspicious business practices. No matter what size the nonprofit, it is always a good practice to consult proper accountants and attorneys to keep on the right side of an audit.