Goodwill Omaha Controversy Shows Why Nonprofits Must Safeguard Reputations

Concerns raised about some processes and practices employed by the Goodwill Omaha board of trustees provide valuable object lessons for members of every nonprofit board.

Such board members play an important role as stewards of not only their donors’ money but also of their organization’s reputation. As such, they must be wary of even the appearance of conflicts of interest.

Omaha World-Herald reporter Matthew Hansen found that over the past decade, Goodwill Omaha granted no-bid contracts totaling more than $5 million to two Omaha companies whose executives sit on the nonprofit’s board. Additionally, several smaller no-bid contracts were awarded to friends and family members of the nonprofit’s leaders.