In an investigation begun last year, one pretty large nonprofit has been accused and apparently found guilty of recording job placements that didn't occur -- essentially, committing fraud.
Not surprisingly, the article has focused on the staff with the CEO saying that the problem was with middle managers and that they all were fired. But like the Senate investigation going on with the Secret Service, the big question is whether a "culture" of condoning and even encouraging such staff activity didn't come from the top of the organization, and in turn, how much if anything did the nonprofit's board know and if they did not, why not and if they did, what did they do?
The questions for the board begin with understanding whether they are assessing outcomes and if so, when outcomes appear too good to be true, are they working to understand how this is so. And then there is the matter of culture reflected in values. Has the board stated the performance standards they value in the organization or have they hired a CEO who they think matches their values?
Much of this is water over the dam, but the situation should serve as a reminder for nonprofit boards that the values, culture, and outcomes of the nonprofit they "own" belong to them as part of their duty of care.
Here's a link to the story.