Nonprofits and how they should perform
Dear Editor,
Countrywide, nonprofits do wonderful work for their communities, but sometimes the organization is strictly run for personal gain or ego. Such organizations must be looked at for their performance and must be transparent. There is no place in the not for profit organizations for stonewalling, unclear financials and a lack of openness by the board and executive directors.
The nonprofit that supplies no direct service, but simply raises funds should be the most, if you will, “profitable” endeavor, returning to its community at least 75 percent of the gross revenue. The remaining 25 percent would be used for salaries, office costs, fundraising and the costs of any fundraising event. The organization is not a cash draw, wherein the board or executive director uses donated funds for personal pleasure, deferral of personal expenses or gain. Self-serving parties to celebrate a holiday or event is just totally improper, the funds were raised under the guise of giving not taking.
Every nonprofit, especially, in a closed community such as the GLBT community, owes it to the donors and the community to fully disclose all costs, reduce expenses and make sure the maximum donation transfer to the actual care givers/organizations and not be used for personal pleasure or benefit.
One important message is that the executive director/CEO works at the pleasure of the board, not the other way around. The board has a fiduciary responsibility to manage and oversee the work/activities of the executive director/CEO and assure the community of the openness and honesty of both the board and executive director/CEO. There is no excuse for denying access to financials or clouding the financials in indecipherable double talk. Salaries must be clear, expenses have to be justified and the board/executive director/CEO held responsible for any abuse of power or lack of transparency.
PHILIP M. KATCHER
San Diego
