You've likely heard the term "pass-through". In the nonprofit world pass-through monies are often those monies designated or restricted for a particular purpose but allocated to a nonprofit fiduciary to ensure the monies get to where they are going and accounted for properly (my own loose translation of the term). Nonprofits that play this fiduciary role can be very helpful for ensuring that projects without a "home" happen.
A trial in DC (Neil Rodger's aide) reminds us that sometimes some individuals may have different ideas about what is truly for mission. According to the Washington Post, a congressional aide, Thomas,helped his boss use some money that was intended for children's welfare, redirect this money. Thomas apparently took the money, some $350,000, and steered the money through nonprofit groups into his pocket.
How exactly can this happen? How exactly does a nonprofit open its check-book in such a way that an individual can benefit? Bad accounting systems and processes? Someone on the "inside" on-the-take or just not looking? And what about the end-of-the-year audit? Don't these actions eventually show-up? Is there dishonesty on the inside and outside?
Yes, many more questions than answers but certainly, every nonprofit board member should be at least asking: are our systems effective in both tracking and ensuring our money flows where and how we want our monies to flow. Yes, this is part of what the fiduciary in governance includes. Let's be sure we are all keeping an eye out.