There are occasions when a nonprofit's consumers and staff know better about the management than the Board. I'm not saying this is a regular event but I'm willing to suggest this happens enough to indicate that not all boards listen very well if at all and are probably not very good managers or surrogate owners themselves (yes, I've come to believe "surrogate owner" is the best description of the role and responsibility of the board).
Case in point is the Multi-Cultural Academy Charter School in North Philadelphia. According to the Philadelphia Inquirer and State Ethics Commissions and Federal documents, the School rented properties owned by the founder and former chief executive officer, his wife, Maria, and a nonprofit organization he cofounded. The president of the Multi-Cultural board, Tae-Ock Kauh, approved the lease even though the full board did not vote.
The CEO:
was paid $206,342 by Multi-Cultural for the year ended June 30, 2009, and an additional $69,550 that year for serving as executive director of the Indochinese-American Council. Thuy cofounded the council, which also employs his wife and owns Multi-Cultural's current building at 3821-23 N. Broad St.
The school pays the council $43,000 monthly rent for the former St. Stephens parish buildings, or more than $500,000 a year. The rent amounts to one-third of the school's $1.5 million budget, which comes from the Philadelphia School District, the state, and the federal government, the tax filing shows.
Thuy, who founded Multi-Cultural in 1998, was toppled by his handpicked board in the spring after a campaign by parents and staff, who said they were concerned money was being drained from the school to represent Thuy. Records showed the school had spent $222,000 on legal fees in the last 12 months.
Staff and parents also complained about a rodent infestation and charged that Thuy's temper and demeaning behavior had created a "toxic" climate at the school of 202 high school students.
And where was the board through all this? Not being very good owners.