I believe that one of the most difficult duty-of-care decisions a nonprofit board can make is to close a program - especially a program that involves sending current customers and future customers away; laying off lots of employees; disposing of assets that may even have some historical significance; and finally, risking damage to the brand. But this is the reality for Bialystoker Center & Bikur Cholim Inc. in New York. Thanks to the economy, the Center is closing its high-rise 1930's nursing home. It hopes to find a buyer for the building which will likely put some money back into its pocket to continue to pursue mission-related activities. What is difficult to assess from the Washington Post article about this planned closing is exactly what other mission activities the Center has. I assume there are and this closing will better enable these activities because duty of care may on include ensuring assets are used to pursue mission and risks that affect these pursuits are reduced and a closing appears to accomplish these responsibilities but what if this exercise is just about a board and management being really tired after so many years? Is the board still exercising the duty of care?
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