Feed the Children - Where are the policies?

And 'worst nightmare non-profit, a CBS News 18 February 2010 06:00 by Katie Couric national history that highlights a complaint for abuse of funds by a charity.

Where are the policies that guide the governance, ethics and responsibility of the non-profit? This article will serve as a case study to highlight the importance of some very obvious questions that could have been easily avoided. It is not intended as a review of "Feed the Children", an assessment of the need or effectiveness of its program. Rather, it is a reaction to elements in the story and an example of how policies can prevent and / or lead an organization in a period of indictment or investigation, none of which must necessarily be bad for any non-profit organizations. CEGA believes that all non-profit organizations need to 'mark of quality' and the problems highlighted by the "Feed the Children" news will be a great learning opportunity.

By way of brief review, "Feed the Children" was reportedly the fifth charity, the annual contribution of over $ 1 billion. CBS reported on a very public dispute between its founder and his daughter, which is now occupied by the charity. Allegations of misuse of funds were made public in various causes and counterclaims. Watchdog organization reports that the charity has been questioned for over a decade of its operation. Among the accusations are very serious that only 15% of funds raised directly support the need for which was established charity. Recent allegations include emergency relief efforts in Haiti, so the fields were created to feed hungry children. The CBS survey on the operation of a field in Haiti indicates considerable confusion and misinformation surrounding the performance of charity and the role it was playing. The United Nations says the false charity. It 's been reported that the meals were not served by the charity to all children after two weeks of operation of the field. In the midst of investigative journalism in the history of CBS, the coordinator for Haiti-based "Feed the Children" resigned last week.

Let's start with what we believe is the most important policy of any non-profit organization: its policy of conflict of interest. This policy may be very short - or very inclusive - or may include specific subpolicies, but the conflict of interest policy should drive an organization whenever there is a problem, for example, between its founder and member of the family is an employee of the charity. This policy can rightly prohibit the use of a family member, and can describe the types of financial transactions that are and are not acceptable by the charity. For example, the expenditure of funds for charity on the lifestyle of an employee is not good policy for every non-profit organizations. If this policy is in place, the governing body, presumably its board of directors, is a working tool in place to assess compliance. And, if the policy was adopted and is the record, it is stated, for all donors to see the intentions of the organization.

The absence of such a policy does not mean that the intentions were not adequate, but it's so difficult to prove, to measure, and to govern. Having a policy in place before a problem occurs that can not be considered wise and proactive. CEGA believes that this proactive approach will become increasingly important as donor contributions become increasingly demanding.

While the conflict of interest policy should provide the cornerstone for any set of non-profit policy, many policies can be customized to meet the specific needs of an organization. Examples include investment policies, the policies that guide administrative costs against direct services (which are necessary for reporting non-profit organizations in many states), employment policies that restrict the employment of family members and, more particularly , establish a normal distance between the board of directors and staff, so that family members may not serve on the board, which appoints other family members as staff.

Other examples include strict guidelines for expenditure of the event, especially all that fall into the category of "fun and expenses" and policies that define the methodology adopted by the Compensation Board. Absence of such policies leaves open the possibility for the charges and does not provide the board with the tools to make clear determinations when circumstances arise. Let us hasten to add that the mere adoption of the policy does not ensure the proper functioning of the non-profit organization, the intent of the policy needs to become part of the fabric and culture of the organization, which accrues to his benefit over time.

When a non-profit organizations face a charge that would have destroyed the public trust placed in that body, is nothing short of tragic to learn that the operation was not driven by sound policy and guidelines. In the wake of Enron and Madoff, a non-profit wise would do well to consider increased regulation such as Sarbanes-Oxley and courage to move toward self-regulation as a competitive advantage over its peer organizations. Why? Why enlightened self-government is the right thing to do. And, from the IRS regulations that allowed the creation of the charitable organization is the law ....