Governance Q&A: Ending the foundation and nonprofit relationship

My organization funds a charity to carry out programs that serve both our missions. We have been giving core support plus project funding, some of it multi-year, for about ten years now. Our priorities have changed and their programs are...

Governance Q&A: Redirecting funds without approval

Our grant application reflected our best estimates for results and expenses. Take-up was well below our expectations and, therefore, our costs were a lot lower too. But we developed a related program that achieved similar outcomes, sort of, and used...

Governance Q&A: Fraud in nonprofits

I read that a nonprofit employee recently committed suicide after being confronted with evidence that she had defrauded a nonprofit. Was the nonprofit ethically responsible for leading her into temptation? The responsibility for wrongdoing always rests primarily with the wrongdoer....

Governance Q&A: Responding to CSR inquiries from grantors

The company I approached for a grant this week asked for information to confirm that my charity operated in accordance with corporate socially responsibility. We exist for public benefit and are not a corporation in that sense, though we are...

Governance Q&A: When should a charity close its doors?

Is it ethical to shut down a charity when there is a group of people that would like to form a new board, drawing on new contacts and strategies, to help the organization carry on its work? When should a charity...

Governance Q&A: Fee-for-service vs salary for executive directors

Is it ethical to hire our executive director on a fee-for-service basis rather than on salary? Does this arrangement help us avoid liabilities such as an unjust dismissal suit if we terminate the individual? Many organizations do use this method,...

Governance Q&A: How to manage troublesome volunteers who mean well

I have some volunteers that are more trouble than they are worth, but they are good-hearted people who mean well. Another team leader suggested I fire them. Can a nonprofit ethically get rid of people who want to help? Not...

Governance Q&A: Accepting donations from tobacco companies

My charity has just been offered a large donation from a tobacco manufacturer. Is it ethical to take money obtained from a product that kills when used as directed? Many people are surprised to find there are two sides to...

Governance Q&A: When a board doesn’t follow its bylaws

I am very concerned that the board of a charity to which I belong is not following its bylaws. I read the minutes and also hear about problems from staff and volunteers, and there are numerous ongoing violations. They appear...

Governance Q&A: The intricacies of deciding appropriate employee training

I supervise a number of employees, and always try to help them develop skills relevant to their current work and their career. One employee requested training on project management, and we agreed on a course. She asked to take it...
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