No doubt there have been failures of non-profit management as egregious as what's been going on at the Milwaukee Public Museum, but none come readily to mind. The place was running huge operating deficits for several years and the chief financial officer papered it over by taking money out of the endowment, apparently without telling the board or the CEO. In only a couple of years the endowment was basically drained (it wasn't big to start with) with the place still tens of millions of dollars in debt.
Now the finance chief has been charged by the state's attorney with severe malfeasance (there's no allegation that he kept any of the money himself); he's looking at jail time. The board and CEO shouldn't be let off the hook though, they seem to have been basically uninterested in oversight of the museum's finances. Nobody over there has done the sector proud, for sure.
Friday, October 27, 2006
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