Accountability

Nonprofit Executives Charged in $8.5 Million Fraud Case
July 10, 2015 at 6:00 am

For decades, the Chicana Service Action Center received millions of dollars in taxpayer money to help some of the county's most disadvantaged residents: the homeless, the unemployed, victims of domestic violence, foster youth looking for work. The nonprofit organization also played a pivotal role in launching the political career of former County Supervisor Gloria Molina,…

ESPN Scratches Charity Golf Event at Donald Trump Course
July 8, 2015 at 6:00 am

Would-be president and billionaire businessman Donald Trump’s derogatory comments about Mexico and Mexicans cost him another business deal on Monday as the world’s largest sports broadcaster scratched his golf course for a charity match. ESPN, the sports channel which is majority-owned by Disney, on Monday said it would pull a charity golf event from a…

Nonprofit Fraud: It’s a People Problem, So Combat It With Governance
June 24, 2015 at 1:59 pm

Skimming cash, purchasing schemes and financial statement fraud—three very different types of fraud that nonprofits must prevent, detect and insure against. Still, behind each of them—and every variety of deliberate, deceptive acts against nonprofits—there’s a fundamental and shared dynamic at play. Fraud isn’t just an operational or financial risk. It’s inherently a human risk, meaning it often…

Why You Should Not Be a Major Gift Officer
June 22, 2015 at 12:41 pm

If any one of these traits are yours, either you need to change something or decide that perhaps you are in the wrong position. Look, we are all on a journey. But why continue on the path that is making you miserable? Doing it just for the money is not fair to you or your organization’s donors.

Groups Allege Walmart Foundation Violated Tax-Exempt Status
June 17, 2015 at 1:06 pm

More than a dozen community groups filed a complaint with the Internal Revenue Service Monday alleging that the Walmart Foundation violated its tax-exempt status by using charitable funds to advance the retailer’s entrance into urban markets including Washington. The 22-page complaint, addressed to IRS Commissioner John Koskinen, details the retailer’s marketing and lobbying activities as…

Torpedo the Ratio
April 24, 2015

I recognize the inherent risks associated with letting go of tight financial controls. I see the awkwardness of talking to donors about the cost of raising a dollar. I see our industry playing Twister—Semantic Version with expense allocation, coming out with legal structures that allow us to say, "100 precent of your donation goes to the cause." We all know that offices, desks, computers, employees, etc., are not free. We know a marketing-minded visionary donor agreed to "0 percent of your donation goes to the cause" to allow us to make that other statement legally, though not logically.

Build an Ethical Fundraising Program to Last
April 22, 2015

Those of us in the nonprofit arena have a responsibility—and an accountability—to build things that outlast us. It's not about us as CEO, or chief development officer, or board chair, or board member. It's about building an organization that is sustainable and can grow in support of a worthy mission.