Keeping Your Reputation ‰ÛÒ Integrity Risks for NFPs

Recent cases questioning the integrity of some Not-for-Profit (NFPs) organisations highlight changing accountability requirements for the sector. As more public funds are provided to the NFP sector to deliver public services a higher level of public accountability is being applied to the sector. NFPs able to negotiate this transition will distinguish themselves in the market.

For some, the recent Anzac commemorations were tainted by the Department of Veteran Affairs stripping the Camp Gallipoli Foundation of its permit to use the protected word “Anzac”. This came as a result of an investigation by Fairfax Media which suggested that the CEO of the charity may have inappropriately received payments of up to $1.5 million and that significant sums of money collected by the organisation were not passed on to veteran associations.

Recent revelations that the Shane Warne Foundation only passed on 11% of its income in 2014 to its charities, that it spent $281,000 raising $279,000, and that it could not properly account for the money raised, were followed by the personality closing the charity down, which prevented further scrutiny of the organisation’s financial records. Warne’s statement in an interview with Channel Ten, “you can all get stuffed if you want to have a go at us …” exhibits a common lack of understanding about public accountability expectations and how good intentions can go so easily astray.

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