In the following KY3 news story, the so-called nonprofit "expert" interviewed for a story about a nonprofit board that is wringing its hands over what next to do after its executive is indicted on federal fraud charges. By the way, her crime is having "defrauded patients by claiming she was administrating stem cell therapies but administered amniotic fluid that contained no cells". The exec has declared she is staying at the health care clinic where I can only guess is the location where the fraud took place.
The "expert" suggests that the board has more authority than it understands and then also suggests that the board has to think about board composition and meeting frequency (it appears the board hasn't met for at least two years).
I mean really, the violations are over the top for this failed board. But let's start with the biggest issue: fire or at least suspend the exec IMMEDIATELY! This is not even a question. And then, decide what to do about the trouble Tricia is in but only in light of what it means for the health center to go forward and simultaneously, address patient concerns and needs. Reach out both to these folks and the rest of the community, NOW. Oh, and maybe 3-4 months down the line, think about a board that has a clear job description, meets regularly and recruits new members who are mission focused. And did I mention there will likely be a need to meet weekly until the public relations and legal storms are addressed and a new exec is selected and put in place. Yes, likely will need a new exec not to mention a lot of insurance.
Nonprofit adviser explains problems Tricias Derges’s board of directors could face with her staying executive director
SPRINGFIELD, Mo. (KY3) - The future of Tricia Derges’s non-profit, Lift Up Someone Today, is still unclear after her indictment on federal fraud charges. One board member, Dr. Luke Van Kirk, says he doesn’t know how to arrange a meeting to discuss her position as executive director.
Tricia Derges’s attorney, Stacie Bilyeu, tells KY3 Derges plans to keep her role as executive director at Lift Up Someone Today. Managing nonprofit adviser Dan Prater says the other board members have more authority in that decision than they may think.
“In times of crisis if board members don’t step up or a champion doesn’t arise, they are in a situation where it could be the end of an organization,” Prater says. “They’re doing important work. Nobody wants to see that.”
When you become a board member of a registered non-profit, Prater says you become a legal officer of the organization.
“It’s not just a good will gesture to put your name on the roster,” Prater says. “You actually can be held accountable.”
Prater says boards should have diverse members that represent the community the organization intends to serve.
“You want to have a well-balanced board,” Prater says. “You want to have a board who aren’t just friends and family. That’s a bad sign right there. You want to have a board that represents the people you serve.”
Before joining a board, Prater says you need to understand what you’re signing up for and that starts with a clear understanding of the position.
“If they don’t know what they’re supposed to be doing, it’s unlikely the organization can utilize their resources, their connections and their wisdom to actually make them a better group,” Prater says.
Prater says it’s important for board members to understand that the executive director works for them, not the other way around.
“Whoever is in a leadership position is not doing the work that needs to be done or there’s damage being done to the organization, it is the boards responsibility to decide whether that person stays or goes,” Prater says. “It’s not the founder or the individuals choice. The board absolutely must act, and this is actually one of the legal requirements, in the best interest of the organization.”
Van Kirk says he’s been on the board for two years and the members have never had a meeting. Prater says most boards meet every month and those meetings are very important.
“As a general rule, you should decide how frequently does the board meet or need to meet to accomplish the work we need to do,” Prater says. “At minimum you’ll find there are some boards that are not involved and they may only meet two times a year. Some boards will meet quarterly. It’s pretty common that boards would meet about ten times a year.”