The Church Law Group » board members http://churchlawgroup.com/blog Church law, legal issues, and helpful resources Wed, 22 May 2013 15:22:28 +0000 en-US hourly 1 http://wordpress.org/?v=3.4.2 Price of Board Inaction: $5.5-Million for One Charity http://churchlawgroup.com/blog/uncategorized/price-of-board-inaction-5-5-million-for-one-charity/ http://churchlawgroup.com/blog/uncategorized/price-of-board-inaction-5-5-million-for-one-charity/#comments Tue, 05 Feb 2013 18:42:38 +0000 alicia.baker http://churchlawgroup.com/blog/?p=1387 Nonprofit board members who think they don’t face any risks if they provide lax oversight should pay close heed to the $5.5-million price tag the New York attorney general just put on inattentiveness.  Every board member should understand the strong message government officials were sending about the level of diligence expected from them, especially when it comes to conflicts of interest involving top executives.

The case at issue involved Educational Housing Services, its founder and CEO George Scott, and its board of directors.  Regulators have drawn such conclusions about lack of due diligence at other nonprofits, but the severity of the penalties levied in this case is what should receive broader attention from all boards.  Mr. Scott, his controlled subsidiary company, and the charity’s five board members were required to pay an aggregate of $5.5-million to settle the matter.

http://philanthropy.com/article/Price-of-Board-Inaction-/136669/

]]> http://churchlawgroup.com/blog/uncategorized/price-of-board-inaction-5-5-million-for-one-charity/feed/ 0 The Charity Caught Up In the Penn State Scandal http://churchlawgroup.com/blog/uncategorized/the-charity-caught-up-in-the-penn-state-scandal/ http://churchlawgroup.com/blog/uncategorized/the-charity-caught-up-in-the-penn-state-scandal/#comments Tue, 22 Nov 2011 16:59:36 +0000 alicia.baker http://churchlawgroup.com/blog/?p=921 The Penn State sex abuse scandal is yet another reminder to Board Members and Directors of nonprofit organizations to ensure that complaints of sexual abuse in your organization is to be taken seriously.  Jerry Sandusky, former Penn State assistant coach who is now accused of sexually abusing young children, founded a program for “at-risk” children called Second Mile.  In the midst of all the recent developments about various victims coming forward to tell their story of abuse, a recent article by the Nonprofit Quarterly talks about the involvement of Sandusky’s charity and how the nonprofit and its Board Members might be as culpable as Penn State.  The article reports that Second Mile was aware of several charges of child abuse and did nothing.  Sandusky’s name has now been removed from the charity’s website, but the damage caused by Second Mile’s inaction will remain forever.      

The full article can be found at:  http://www.nonprofitquarterly.org/index.php?option=com_content&view=article&id=17576:jerry-sanduskys-second-mile-charity-may-be-as-culpable-as-penn-state&catid=153:features&Itemid=336.

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