Comments on: The Opposite of Accountable http://www.nonprofitsassistancefund.org/blog/2008/07/11/the-opposite-of-accountable/ Nonprofits Assistance Fund shares thoughts and insights on nonprofit management and finance Fri, 20 Jan 2012 15:53:43 +0000 hourly 1 http://wordpress.org/?v=3.3 By: Kate Barr http://www.nonprofitsassistancefund.org/blog/2008/07/11/the-opposite-of-accountable/comment-page-1/#comment-189 Kate Barr Fri, 18 Jul 2008 19:09:17 +0000 http://www.nonprofitsassistancefund.org/blog/2008/07/11/the-opposite-of-accountable/#comment-189 The contrast between ACORN and Points of Light Institute is remarkable, as the NYT reporter made clear. POLI took immediate action, disclosed the information, and carried out a process to make sure that the misappropriation was not only reported but also referred to law enforcement. An interesting set of cases to discuss. The training questions raised by both commenters is really important. I think it goes way beyond training though to the issue of board culture. Good governance is grounded in everything from process and procedures to leadership to recruitment. Above all is a shared understanding of the role of a governing board and actively walking the walk. Many boards, and executive directors, don't acknowledge that the board needs to actually set aside time at meetings and as part of planning to develop good governance. Formal training is a step and the hands on regular practice is the rest. The contrast between ACORN and Points of Light Institute is remarkable, as the NYT reporter made clear. POLI took immediate action, disclosed the information, and carried out a process to make sure that the misappropriation was not only reported but also referred to law enforcement. An interesting set of cases to discuss.

The training questions raised by both commenters is really important. I think it goes way beyond training though to the issue of board culture. Good governance is grounded in everything from process and procedures to leadership to recruitment. Above all is a shared understanding of the role of a governing board and actively walking the walk. Many boards, and executive directors, don’t acknowledge that the board needs to actually set aside time at meetings and as part of planning to develop good governance. Formal training is a step and the hands on regular practice is the rest.

]]> By: Soren http://www.nonprofitsassistancefund.org/blog/2008/07/11/the-opposite-of-accountable/comment-page-1/#comment-179 Soren Thu, 17 Jul 2008 20:08:46 +0000 http://www.nonprofitsassistancefund.org/blog/2008/07/11/the-opposite-of-accountable/#comment-179 Allgood2, you make a great point about training, and especially about the need for it to be ongoing. While many (most?) boards have NEVER been trained in governance, many others see a one-time training session as somehow adequate. For any training to be effective, it has to be sustained over the long haul, then started over again. This also applies to internal staff training, of course. I have worked for more than one organization that thought showing a video -- once -- was an effective training strategy. - Soren Allgood2, you make a great point about training, and especially about the need for it to be ongoing. While many (most?) boards have NEVER been trained in governance, many others see a one-time training session as somehow adequate. For any training to be effective, it has to be sustained over the long haul, then started over again.

This also applies to internal staff training, of course. I have worked for more than one organization that thought showing a video — once — was an effective training strategy.

- Soren

]]> By: allgood2 http://www.nonprofitsassistancefund.org/blog/2008/07/11/the-opposite-of-accountable/comment-page-1/#comment-176 allgood2 Wed, 16 Jul 2008 14:21:50 +0000 http://www.nonprofitsassistancefund.org/blog/2008/07/11/the-opposite-of-accountable/#comment-176 Interesting post. I was wondering if you could associate the lack of board fiscal oversite; as more prevalent with 'representative boards' that do NOT receive exhaustive, ongoing board training and development. I identify representative boards—as when the organization places low income, homeless, HIV/AID, women, etc.,whatever the target population for the organization—as the majority of the board. I should also emphasis, the point is not specifically, the placement but the lack of training provided in an ongoing manner. A single class or a single board meeting stating these are your responsibilities seems woefully inadequate, when members of the board have no business experience, no board experience, etc. I've just always felt that these type of boards don't provide an adequate checks and balance for the organization. Interesting post. I was wondering if you could associate the lack of board fiscal oversite; as more prevalent with ‘representative boards’ that do NOT receive exhaustive, ongoing board training and development. I identify representative boards—as when the organization places low income, homeless, HIV/AID, women, etc.,whatever the target population for the organization—as the majority of the board.

I should also emphasis, the point is not specifically, the placement but the lack of training provided in an ongoing manner. A single class or a single board meeting stating these are your responsibilities seems woefully inadequate, when members of the board have no business experience, no board experience, etc. I’ve just always felt that these type of boards don’t provide an adequate checks and balance for the organization.

]]> By: Soren http://www.nonprofitsassistancefund.org/blog/2008/07/11/the-opposite-of-accountable/comment-page-1/#comment-168 Soren Mon, 14 Jul 2008 15:12:51 +0000 http://www.nonprofitsassistancefund.org/blog/2008/07/11/the-opposite-of-accountable/#comment-168 Kate - I saw that ACORN story. How sad that they thought covering up a criminal act was the way to go. As you mention, it appears they still haven't learned their lesson, as they only seek to "increase" their transparency. They should seek to be fully transparent! The same story in the New York Times also included information about how the Points of Light Institute (POLI) handled misappropriation of funds from an online travel vendor with which they had a cause-marketing relationship. (Disclosure: I sit on the board of Hands on Twin Cities, a Points of Light Institute affiliate.) The contrast between ACORN's and POLI's reaction is substantial. Points of Light quickly disclosed that their travel vendor was under investigation for selling trips and not providing any services. They shut down the online site and disclosed the situation on their website, and have continued to provide updates. The lessons are simple: 1. Ensure financial oversight and sound internal financial controls; 2. If you discover or suspect fraud or criminal acts, don't cover them up! Soren Jensen M.A., Nonprofit Management Kate -

I saw that ACORN story. How sad that they thought covering up a criminal act was the way to go. As you mention, it appears they still haven’t learned their lesson, as they only seek to “increase” their transparency. They should seek to be fully transparent!

The same story in the New York Times also included information about how the Points of Light Institute (POLI) handled misappropriation of funds from an online travel vendor with which they had a cause-marketing relationship. (Disclosure: I sit on the board of Hands on Twin Cities, a Points of Light Institute affiliate.) The contrast between ACORN’s and POLI’s reaction is substantial. Points of Light quickly disclosed that their travel vendor was under investigation for selling trips and not providing any services. They shut down the online site and disclosed the situation on their website, and have continued to provide updates.

The lessons are simple: 1. Ensure financial oversight and sound internal financial controls; 2. If you discover or suspect fraud or criminal acts, don’t cover them up!

Soren Jensen
M.A., Nonprofit Management

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