{"id":106729,"date":"2023-01-02t11:56:01","date_gmt":"2023-01-02t16:56:01","guid":{"rendered":"\/\/www.g005e.com\/?p=106729"},"modified":"2024-08-07t23:09:59","modified_gmt":"2024-08-08t03:09:59","slug":"charity-directors-must-take-theft-seriously","status":"publish","type":"post","link":"\/\/www.g005e.com\/2023\/01\/02\/charity-directors-must-take-theft-seriously\/","title":{"rendered":"charity directors must take theft seriously"},"content":{"rendered":"

\"older<\/a>reading and understanding financials is key.<\/strong><\/p>\n

by ed mendlowitz<\/i>
\n77 ways to wow!<\/i><\/a><\/p>\n

hardly a week goes by that i do not read about a theft, fraud, misappropriation, defalcation or egregious wasteful spending at some charitable organization. some are perpetuated over many years \u2013 perhaps as many as seven years.<\/p>\n

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lack of controls, oversight, disinterest or lackadaisical care creates an atmosphere where an already weak person can spot an opportunity, or perhaps an uncaught or unguarded careless mistake gives birth to a pattern of ongoing criminal action by someone who never had an unlawful thought.
\n
\nwho is to blame? management, the board of directors, large donors and any other stakeholder involved with the organization. thieves spot areas where there is a lack of accountability or managers without an understanding of the financial information that is provided or should be provided on a regular basis.<\/p>\n

establishing and implementing controls is not that difficult. wasteful spending and stealing appears on financial statements in categories of expenses that are out of sync with what they should be or larger than usual. it just needs the recipients to look at what they get and question illogical, unexpected or unexplained amounts that stick out as not being typical. balance sheet changes should also be reviewed regularly with reasons for differences clearly understood. part of a sound system is quick and reasonably accurate financial statements and supporting documentation that are reviewed by those in charge or involved stakeholders including substantial supporters.<\/p>\n

there are generic controls that can be implemented, if not already in place. further, almost every organization has its peculiarities requiring special attention and controls should be adapted for this. establishing many of these controls is not costly and can usually be done quickly.<\/p>\n

however, in my opinion, a major impediment to effective controls is neglect by those trusted with the administration and oversight of the organization. doing it right only takes a few minutes a month. start today to get it right. do not place yourself in the position of having to explain why there was a theft or extreme waste under your watch.<\/p>\n

serving is not an honorary entitlement<\/strong><\/p>\n

many people serving on charity and public agency boards of directors assume huge responsibilities, yet many act as if they are entitled and accept it for the \u201chonor.\u201d they are foolish and are cheating those entrusting them to oversee the organization they are supposed to be serving.<\/p>\n

recently a very large ny agency \u201cdiscovered\u201d that some employees were making annual salaries of upward of $350,000 because of overtime payments. and it isn\u2019t one or two people \u2013 it is of epidemic proportions. as i said, a week doesn\u2019t pass without a news story about a major embezzlement or theft in a local charity or governmental body. my question is simple: who is responsible and why weren\u2019t they watching what was going on?<\/p>\n

when these are discovered, the directors all profess ignorance of the egregious shortages, saying that management let them down. bull doody! they are the ones who let management, the public and all stakeholders down. and if they took their responsibility with the least seriousness, it is highly likely these defalcations, overcharges or immoral payments would not have continued for as long as they have.<\/p>\n

here is what they could have done to possibly have prevented the continuance of these misuses of public funds:<\/p>\n