Nonprofit Governance WA 2 Coursework Example | Topics and Well Written Essays - 500 words

Nonprofit Governance WA 2 - Coursework Example According to a report published by the Charity Watch (2012) of the American Institute of Philanthropy, AFM’s revenues in 2009 increased to $1.3 million, and that it sold food to everyone that wanted to buy it at low costs instead of selling food only to the people that were needy. After a four-year investigation, the federal investigators laid numerous accusations against the AFM owners that included Joe and his wife Linda Wingo, son Andy Wingo and an employee Harry Michaels. These accusations included fraudulent dealing and reporting of funds, funds diversion, unethical dealings with suppliers and vendors, using funds for personal gains and lavish life styles etc. These findings eventually resulted in shutting down of AFM besides prosecution of the accused. White (2010, p.153) specifies that the four essential concepts that form the backbone of ethics in non-profit organizations include disclosure, transparency, avoidance of conflict of interest, and oversight. At AFM, the owners’ intentions were not aligned to the needs of the people they wished to serve. Moreover, their multiple principles seemed to contradict each other. For instance, AFM’s mission to serve the people in need did not correspond with the owners’ intentions of making money and their inclination towards lavish life styles. The founder actually saw a business opportunity amidst increasing costs, which he continued to harness by adopting nonprofit model in order to get easy funds and access to the target market. This intention itself was unethical. Employees that knew about these practices also tried to take undue advantage of the situation. Non-profit organizations function largely based on trust, which helps them to acquire funds, partners, and relationships. Hence, it becomes all the more important for the leaders/owners to exhibit integrity and transparency; and to be accountable for their funds and resources. In conclusion, the Wingos’ and their