It is quite easy to find corruption within nonprofits. This is particularly the case in the subsector of not-for-profits that are incorporated as traditional 501(c)(3) entities. With the continuing erosion of public confidence in charities, these institutions must act now, both individually and collectively, to bolster trust and ensure public support for nonprofits that has been a hallmark of American democracy. This book explores the causes of malfeasance in the nonprofit realm. It examines how the current inadequate regulatory environmentâtogether with inherent âagencyâ problemsâcan lead organizations astray as they turn away from fulfilling donor wishes to instead act in their own self-interest. The book highlights the distinction between âsoft corruptionâ in the nonprofit sector and âhard corruption.â The former includes the misuse of donor funds that do not cross the line into illegality and the latter covers explicitly illegal misappropriation of contributions. In Foul Play in the Nonprofit Sector, economist Mark S. LeClair provides constructive overviews regarding charity evaluation. Is it truly fair to judge nonprofits on their financials? The financial figures so frequently dictate the value of a nonprofit, and this often isnât the best way to judge a charityâs performance. The manuscript includes suggestions for internal sectoral changes and regulatory reforms that can deter corruption at nonprofits.
