After more than 216 editions
of Nonprofit Imperative, I have
decided to cease publication.
In the past decade, we have faced
an unsettling, even frightening, explosion of charity fraud. Charity
malfeasance and fraud were an afterthought until we began identifying the
enormity of the problem. Studies continue to show a level of corruption,
mismanagement and overt pillaging and diversion of tens of billions of dollars---annually---that have been taken from those for
which they were intended.
The problem, however, has not
gone unnoticed. Nonprofit Imperative
has chronicled it every step of the way.
· Thousands of subscribers of Nonprofit Imperative e-newsletter have received the e-newsletter.
· There have been hundreds of thousands viewers of our blog.
· Nonprofit Imperative has been the ‘go-to’ stop for
media including the New York Times, Washington Post, NPR. The list goes on approaching
one hundred other publications and radio and television sites.
· We have worked with state and federal lawmakers and regulators
including Congress and state Attorneys’ General, to help stem the tide of
charity fraud.
· We have assisted hundreds of individuals who thought
their favorite charity was compromised.
· Two books on the topic of charity fraud---Nonprofits On The Brink and Silence: The Impending Treat To The
Charitable Sector---have been written and have been incredibly well
received. (The latter is sometimes referred to as a mosaic of little leadership,
little interest by Congress, and ineffective regulators, which has resulted in
a sector untamed)
· We have aided many thesis candidates in their
authorship and defense of their graduate dissertations.
· Presentations have been made throughout the nation, including
at universities, on the topic of charity fraud.
As you can see we have worked
non-stop to uncover unprecedented amounts of misconduct. Increased public
awareness has been greeted with an increase in public distrust. For example, a
Pennsylvania survey last week showed that only
10 percent of the respondents believe that public trust in the nonprofit sector
is “high,” with 31 percent of the respondents saying that the level of trust
had worsened.
Our efforts, however, have
been met with denial and avoidance by influencers and decision makers. Sector
leaders have shown little interest in the problem, relying on fantasy
self-regulation as the answer. Sector overseers are preservationists who want
no change because in their view, there is too much to lose. Moreover, leaders
have been enablers by their silence, public abstention, and obfuscation---all
of which have been the lifeblood of charity fraud.
The IRS and state attorneys’
general are more focused on regulation of tax collection rather than regulation
of fiduciary behavior. Needless to say, a lawmaker’s attention in resolving any
matter, including charity fraud, is of little import. Regulators, except for a
few, have shown little interest unless charity malfeasance shows up in a
headline. The probability of reaching a headline is minimal because
investigative reporting is so prohibitively expensive only a few in the media
can maintain critical staff. Politics and lack of resources have driven
judgment. Boards have led with a detached indifference.
I remain somewhat optimistic
in the hope that charity fraud will get the attention it deserves. All that is
needed is a confluence of internal and external sector stakeholders to put the scourge
of fraud, egregious malfeasance and inadequate board governance at the top of
the list of resolvable issues.
On a most positive note, I
want to thank you for your input, participation, support and loyalty. As with
any undertaking, there have been frustrations, but the gratification and fulfillment
that I have received have outweighed any setbacks many, many times over.
In this endeavor, I have
gained friends and acquaintances that I will cherish forever. I thank you!
Have a wonderful holiday
season.
Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Charity Navigator, Vermont Public Radio, Miami Herald, National Public Radio (NPR), Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), “Betrayal”, (a movie), NBC (on Charity Fraud…TBD), FOX2, ABC Spotlight on the News, WWJ Radio, Marie Claire, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, Charity Navigator, The Chronicle of Philanthropy, St. Petersburg Times, Board Room Insider, USA Today Topics, Accountants News, Newsweek.com, Responsive Philanthropy Magazine, New York Times, Portfolio Magazine, The Virgin Islands Daily News, NANKAI (China) BUSINESS REVIEW, National Religious Broadcasters newsletter, The Charity Governance Blog, American Chronicle, Palm Beach Post, Detroit Free Press, Oakland Press, Nonprofit World, Socially Responsible Business Forum, PNNOnline, Ohio Nonprofit Resources, Nonprofit Good Practice Guide, Nonprofit Startup Guide, Nonprofit Blog, National Coalition of Homeless Newsletter, Finance and Administration Roundtable Newsletter, MichiganNonprofit.com, CORP! Magazine, Crain’s Michigan Nonprofit, ncrp.org, PhilanTopic, Nashville Free Press, Nonprofit Law Blog, Seniors World Chronicle, Carnegie Reporter, Assoc. of Certified Fraud Examiners Examiner, msnbc.com, Worchester (MA) Telegram and Gazette, Carnegie Corporation of America, EO Tax Journal, Wikipedia: Non-profit Organizations; Parent: Wise Austin, Accountants News, Veterans Today, Answers.com, Far-roundtable, #Nonprofit Report, nonprofithelpnews, nonprofit news; National Enquirer, Northwest Herald, The HelpWise Daily, The #Nonprofit Report, Wikipedia (Nonprofit Organization), Answers.com, Nonprofits: On the Brink (2006) Silence: The Impending Threat to the Charitable Sector (2011)
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