Description
Trust and transparency are key building blocks in developing a fundraising foundation. Yet stories abound about sloppy bookkeeping, mismanagement and misuse of funds in non-profit organization. One story that garnered much attention is that of Greg Mortenson, the author of Three Cups of Tea. The Locks of Love organization has come under similar scrutiny, as have some veterans' groups. Do you think these organizations will ever be able to recover their good names? What additional steps might they take to do this? How do organizations, who lose the trust of their donors, survive (or should they)?
Refer to the following articles for background on the Mortenson and other situations.
- Charity Watch's "Update: Greg Mortenson, Central Asia Institute"
- Forbes's "Locks Of Love: $6 Million Of Hair Donations Unaccounted For Each Year"
- Independent Voter Network's "Controversy Surrounds Wounded Warriors, Lavish Salaries, and White House"
- Huffington Post's "Charity Fraud: Disabled Veterans National Foundation Squanders Millions On Marketing Services"
Explanation & Answer
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There have been cases when nonprofit organizations have failed at maintaining
transparency and trust within their organizations. An example case is the Central Asia Institute
and Locks of Love among others. These are nonprofit organizations that misappropriated the
opportunity granted to them by donors to be of help to the society and so had an extremely
negative effect on their reputation. This has ca...
