preview

Founder 's Syndrome A Possible Fatal Condition For Nonprofits

Decent Essays

Founder’s Syndrome a Possible Fatal Condition for Nonprofits? A Closer Look At Board Governance Zachariah Paddock Arizona State University Author Note This paper was originally written for Financial Management for Nonprofits 380, taught by Professor Zelhart. Abstract Throughout the semester our class has focused on the main nine accounting principles and the importance of adhering to the rules of GAAP. It is especially important for organizations that fall into the nonprofit sector to follow GAAP and to be as transparent as possible when preparing financial statements. Along with the nine accounting principles we focused on the differences of responsibilities and duties between the board of directors and the managers of an …show more content…

Being the dedicated and inspired person she was, Hale House quickly began taking in many young children and newborns. “Although Mother Hale’s direct impact was felt locally, her influence spread far and wide. She received more than 375 awards and 15 honorary degrees in her lifetime. In January 1985, President Ronald Reagan recognized Mother Hale as an “American Hero” in his State of the Union Address for her tremendous work in Harlem and her vision for social change (Hale House Center, Inc.).” Mother Hale was Hale House’s acting president and CEO until the day she died in 1992. It was then that her daughter Lorraine took over as acting president and CEO. At first glance it seemed that Lorraine was going to be the dedicated and passionate success her mother was, “She immediately began planning a major expansion of the home’s services, with new branches to be built in drug-plagued cities up and down the East Coast, and embarked on a prodigious fund raising campaign that netted more than $40 million in less than eight years (Lopez, K. (2001, August 1)).” Somewhere in the nine years of being the acting president and CEO Lorraine lost sight of the organizations missions and was using the organizations funds for her own personal uses, “Hale House spent less than half its money on services for the children in its care. The attorney

Get Access