Nonprofits are held to the highest regard and expectations. They are proclaimed alongside virtues that seek to bring about social change and transform lives (Wolf, 2012). However, scandals related to opportunism often befall non-profit organizations. Throughout history, several organizations have been called out for engaging in fraud that is based in self-interest. A good example of this, is the ongoing case of Preferred Family, a mental and behavioral healthcare nonprofit.

In this organization, several parties engaged in fiscal malfeasance including taking money that was meant for Medicaid services, bribing politicians and raising funds to finance political campaigns. The organization’s chief clinical officer pled guilty of knowing what was going on, a psychologist, Keith Noble indicates that he concealed knowledge of the ongoing felony, and the organizations top executives, including the CFO, COO, and CEO who engaged in the fraudulent behavior pled guilty to the offenses (Conway, 2018). This scandal adds Preferred Family to a long list of indiscretions perpetrated by trusted members of nonprofits. In 1996, for instance, the treasurer of the Evangelical Lutheran Church was sentenced to prison for embezzlement, while in 1994, the CEO of the Jewish Community Center of Greater Washington and three of his top aides were arrested for embezzlement, misuse of funds, and satellite business operations (Gibleman&Gelman, 2001).

These indiscretions indicate that accountability ought to be a point of focus for nonprofit organizations (Wolf, 2012). The aim is to ensure that while they are trusted to provide social services and accorded praise, they are directing all the resources and funding towards the achievement of their organizations’ mission, vision and objectives and that they uphold the values of the organization. This is important because issues of improper management devalue and diminish the integrity and accountability of nonprofits and call to question the high esteem to which these organizations are held.

References

Conway, M. (2018). Fraud cleanup gets going in Arkansas.

https://nonprofitquarterly.org/2018/09/20/fraud-cleanup-gets-going-in-arkansas/

Gibelman, M., Gelman, S. (2001). Very public scandals: analysis of how and why

nongovernmental organizations get in trouble.

Wolf, T.  (2012). Managing a nonprofit organization in the Twenty-First Century. New

York: Simon & Schuster.

 
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