Q: I was recently recruited onto the board of a small, struggling nonprofit. The situation scares me, in large part because my fellow board members want to hide their heads in the sand.
Six months ago a staff member blew the whistle on the nonprofit's CEO, who'd embezzled more than $50,000. Volunteers who supported the nonprofit took the necessary steps to replace the former board members who allowed this to happen.
Our new board fired the embezzler and removed all prior managers from financial responsibilities. At this point, however, the other board members are adamant we don't have to do anything else as the $50,000 loss didn't happen "on our watch."
According to our board chair, since we are in good standing with the state, we are off the hook for any problems. I disagree. Almost all of our funding comes from federal grant money. Although the paper trail created by the prior management shows funds being used in a manner consistent with the grants, every single person on our new board knows differently.
I don't want to turn a blind eye to criminal behavior and believe we are required to let the police and funding agency know. I'm worried every board member is exposed to personal liability because they all intend to sweep this problem under the carpet.
I've chosen to step down from the board until this is satisfactorily resolved. What is your take on what a board is legally and ethically required to do in this situation? Any advice you have to offer will be greatly appreciated.
A: As a board member you have a fiduciary or legal and ethical responsibility to act on behalf of your nonprofit, those your nonprofit serves and the funders from whom the nonprofit accepts money. This fiduciary duty requires that you come clean with your funding agency.
According to Dennis McMillian, president of the Foraker Group, an organization focused on training nonprofit boards and managers, your current board can't use the "not on our watch" excuse to escape either its duty or the problem.
"A new board," says McMillian, "inherits the assets and liabilities of the nonprofit. This includes the prior embezzlement and any resulting debts."
Further, your former CEO can and likely will embezzle from another nonprofit if your board simply fires him without alerting those who can fully investigate and potentially prosecute him. McMillian notes: "This board needs to investigate the problem and remedy it through prudence and reasonable inquiry."
As you haven't been able to sway the board to your point of view, you've chosen to take individual action. As McMillian notes, "Individual directors have no real power; the board is a group. Because this board member feels others plan to shirk their duty, this board member's best recourse is to resign."
Finally, you and other board members protect yourself from personal liability by adhering to your fiduciary duty and never knowingly violating the law. As a parting gift to your board you might suggest they request a legal opinion -- so they know the risk they're taking.
Q: While my supervisor always tells me I do a great job when he reviews my performance, he doesn't seem to know what I do or see it as valuable. As a result, while he gives my co-workers raises, I've worked here for three years without getting one. Is there a way to ask for a raise without really asking?
A: Two weeks before your next review, let your supervisor know you take your job seriously and decided to assess what you're doing well and where you need to improve. Ask him if he'd like you to give him what you've written.
He'll say "yes" because your work makes his easier -- and he'll undoubtedly borrow some of what you've written as he writes your review.
More importantly, by self-assessing, you present yourself as someone who takes her career seriously. You can also use what you write to educate him concerning what you do, what you've accomplished and how it matters to your organization's success. If your supervisor hasn't before considered you for a raise, this may do it.
If not, circle back within 30 days and ask "What do I need to do to earn a raise?"