{"id":259,"date":"2022-11-06T20:20:24","date_gmt":"2022-11-06T20:20:24","guid":{"rendered":"https:\/\/divi.ameravant.com\/nonprofitkinect\/?p=259"},"modified":"2022-12-12T20:26:24","modified_gmt":"2022-12-12T20:26:24","slug":"irresponsible-board-destroyed-their-nonprofit","status":"publish","type":"post","link":"https:\/\/nonprofitkinect.org\/irresponsible-board-destroyed-their-nonprofit\/","title":{"rendered":"Irresponsible Board Destroyed Their Nonprofit"},"content":{"rendered":"
[et_pb_section fb_built=”1″ theme_builder_area=”post_content” _builder_version=”4.19.2″ _module_preset=”default”][et_pb_row _builder_version=”4.19.2″ _module_preset=”default” theme_builder_area=”post_content”][et_pb_column _builder_version=”4.19.2″ _module_preset=”default” type=”4_4″ theme_builder_area=”post_content”][et_pb_text _builder_version=”4.19.2″ _module_preset=”default” theme_builder_area=”post_content” hover_enabled=”0″ sticky_enabled=”0″]<\/p>\n
Today\u2019s article will tell you about a board that literally sank their nonprofit by not adhering to a single governance obligation.<\/p>\n
You can read the details of this tragic situation in an article published last week in the\u00a0<\/span>Fresno Bee<\/a>\u00a0<\/span>newspaper about an organization called\u00a0<\/span>Made For Them<\/a>\u00a0<\/span>which served survivors of human trafficking.<\/p>\n Let\u2019s look at each area where the board was negligent and highlight what the board should have done instead.<\/p>\n Neglect:<\/strong>\u00a0<\/span>The Made For Them board did not request or receive regular finance reports. Board members did not concern themselves with the fiscal aspects of the organization. For example, they did not know or care that the executive director was the only staff member who received checks, deposited them in the bank, paid all receivables and received bank statements. Even when they were told about embezzlement and self-dealing by staff, they did nothing to stop it or investigate the situation. This board failed to meet their\u00a0<\/span>legal duty of care<\/a>\u00a0<\/span>and, as such, will most likely be individually liable for the organization\u2019s financial debacle.<\/p>\n>>Financial Oversight.<\/h3>\n