Foul Play in the Nonprofit Sector

It is quite easy to find corruption within nonprofits. This is particularly the case in the subsector of not-for-profits that are incorporated as traditional 501(c)(3) entities. With the continuing erosion of public confidence in charities, these institutions must act now, both individually and collectively, to bolster trust and ensure public support for nonprofits that has been a hallmark of American democracy.

This book explores the causes of malfeasance in the nonprofit realm. It examines how the current inadequate regulatory environmenttogether with inherent agency problemscan lead organizations astray as they turn away from fulfilling donor wishes to instead act in their own self-interest. The book highlights the distinction between soft corruption in the nonprofit sector and hard corruption. The former includes the misuse of donor funds that do not cross the line into illegality and the latter covers explicitly illegal misappropriation of contributions.

In Foul Play in the Nonprofit Sector, economist Mark S. LeClair provides constructive overviews regarding charity evaluation. Is it truly fair to judge nonprofits on their financials? The financial figures so frequently dictate the value of a nonprofit, and this often isn't the best way to judge a charity's performance. The manuscript includes suggestions for internal sectoral changes and regulatory reforms that can deter corruption at nonprofits.

Highlights the increase of corruption within 501(c)(3) not-for-profits Includes suggestions for internal changes and regulatory reform to reduce corruption within nonprofits Explains why judging a nonprofit on its financials is counterintuitive in more than just definition

Autorentext

Mark S. LeClair is Professor Emeritus of Economics at Fairfield University. He specializes in international and development economics and founded the master's program in public administration. His recent research focuses on malfeasance in the nonprofit sector and the financial crisis in higher education. LeClair is the author of Philanthropy in Transition (2014).

Inhalt

Preface.- 1. Nonprofit corruption: Description, causes, and effects.- 2Nonprofits by the numbers: Data overview and stakeholder interests.- 3. Misuse, misdemeanors, and felonies: The levels of nonprofit malfeasance.- 4. When philanthropy goes wrong: The role of agency problems and poor oversight.- 5. Internal controls and the external regulatory environment.- 6. Seeking solutions: Better oversight, self-regulation, or a new direction.