Helps board members to lead wisely, effectively and efficiently.
“According to a Washington Post analysis of the filings from 2008-2012 … of more than 1,000 nonprofit organizations, … there was a significant diversion of nonprofit assets, disclosing losses attributed to theft, investment frauds, embezzlement and other unauthorized uses of funds.” The top 20 organizations in the Post’s analysis had a combined potential total loss of more than a half-billion dollars. One estimate, by Harvard University’s Houser Center for Nonprofit Organizations, suggests that fraud losses among U.S. nonprofits are approximately $40 billion a year.
Program Reductions Are Mandated—What Can A Nonprofit Do?
The word from management is that the board of directors has decreed there will be program cuts. Regardless of the rationale, be it financial or mission-related, the proposed loss is a source of concern to directors and is a common nonprofit board challenge in the 21st century.
Reactions are varied and I invite you to share your board experience on the topic; here are some deliberations that I have encountered in the past: (more…)
Although this article may focus on for-profit boards, there is a great deal in it for nonprofits to ponder. It again shows that although the mission vision and values differ between the two types of boards, operationally there is much that can be learned from each other
What Are Nonprofit Directors’ Duties During Merger, Acquisition or Being Acquired?
By Eugene Fram
Craig Leonard, Morrison & Foerster, LLP has a comprehensive article in the February 25, issue of Board Member.com covering director duties of for-profit organizations when a takeover occurs. Many of his topics listed also can be applied to nonprofits, (more…)
Nonprofit Internal Controls – Are They Being Properly Reviewed?
By Eugene Fram
One of the responsibilities of either a nonprofit or a for-profit board is to make certain that internal controls in place are adequate. This task is usually delegated to an audit committee and/or a finance committee. However, what is meant by internal controls can vary greatly depending of the type of nonprofit and the clients that it services.
Fortunately, De La Rosa Nonprofit Consulting has developed a comprehensive checklist that directors can use to frame internal control questions for the auditors. (www.gcn.org/files/InternalControlsChecklist.pdf) Using the list, the committee can chose the relevant questions before meeting with the auditors and then be able to delve more deeply into significant topics for their organization.
Will New York Lead the Way In Changing Nonprofits?
By: Eugene Fram
In January, Governor Andrew Como place a salary state funded cap of $199,000 for nonprofit executives at (more…)