The Nonprofit Ethicist by Woods Bowman Fall 2014: Volume 21 Issue 3

The Nonprofit Ethicist by Woods Bowman (Fall 2014)
Item# 210301

Accumulating millions in endowment returns is not unethical if they are being reserved for legitimate reasons. If an accountant notices that a client has a going concern problem, he or she is obligated to request the client’s capitalization and financing plans for the long term—awkward as this may be. And, while not strictly illegal, there is indeed a conflict of interest when the board of a membership organization also serves as the board of the organization’s daughter nonprofit.