Lexington Herald-Leader | 05/07/2006 | One foundation loses money but still donates

Lexington Herald-Leader | 05/07/2006 | One foundation loses money but still donates: "There are far too many non-profit board members who see their service as an honorary position, rather than the fiduciary position that it is under every state law,' said Walter Sczudlo, executive vice president of the national Association of Fundraising Professionals.

An absent board and a highly paid director could run into problems with the IRS, he said. In the wake of the United Way scandal in 1992, in which William Aramony, head of the national organization, was convicted of fraud and mismanagement, the IRS instituted new rules that require compensation of top management to be reasonable, compared to the group's assets."

Tags: Board responsibilities, Foundation Grants