Even the biggest, most well-established nonprofits have identified themselves underneath the glare of unwelcome public scrutiny in latest years. Take into consideration the following examples:
- The board of your American Red Cross was forced to answer to get a $200 million illadvised action in which it made use of funds earmarked for surviving household members and victims of your September 11 terrorist attacks for blood distribution programs as an alternative.
- A high-profile scandal in California led to the collapse of a prominent nonprofit organization that defrauded esteemed contributors by utilizing donations intended for other charities to cover its personal fees.
- In 2003, the United Way became embroiled within a scandal that paraded excessive salaries plus the misuse of funds.
- Inside the late 1990s, Lawyer Common Eliot Spitzer spearheaded an investigation involving the Hale Property, a very respected Harlem charity using a 30-year background of caring for homeless infants and toddlers. The controversy started once the investigation revealed that Dr. Lorraine Hale, a director, may perhaps have permitted the organization to divert a huge selection of a large number of dollars toward self-serving tasks that had been unrelated for the organization’s mission.
