By Barry Barbe
In a day and age when millionaires become billionaires, and billionaires strive to be a trillionaire, monetary losses can often be overly simplified.
Last Thursday, The Daily Courier published two front-page stories regarding the alleged embezzlement of over $500,000 from two local nonprofits. To put that in context, $500,000 could provide over 1.6 million, yes million, diapers to young mothers and families in need.
One. Point. Six. Million.
Instead, people placed in the role as stewards of those funds allegedly opted to benefit themselves with vacations, home remodels, and extravagances that those they were charged to serve could only dream of.
How and why can such a travesty be allowed to happen? Trust and trust betrayed.
Every successful business operates on a level of trust between ownership, management, and front-line employees. Without this reciprocal trust, any organization is at risk.
Nonprofits operate at an elevated level of trust as they rely on non-paid volunteers, and a volunteer board to fulfill the mission of the group.
Nonprofits also tend to operate with a small team of employees who oversee the day-to-day operations and financial aspects, trusting them to provide accurate information as to the organizations financial well being.
When trust is taken advantage of, the opportunity for personal enrichment takes over.
This betrayal of trust trickles down affecting the morale and dedication at all levels of the organization. Not only the board, but front-line volunteers who are giving freely of their time to be certain that those most in need receive the services they require to survive and create a better life.
These are the drivers, the clothes sorters, the volunteer janitors, food prep people, servers, and counselors who make any nonprofit run.
All reputable non-profit organizations perform annual, if not more often internal audits. And like any other business, when your focus is on the end result and servicing your client, you trust those tasked with the financial reporting to be truthful and forthcoming.
The cost: 102,000 meals provided through volunteer home delivery organizations.
When embezzlement of this magnitude occurs, those most in need are the first affected.
The ripple effect reaches further into the community to donors and supporters who question whether to continue supporting long standing and reputable organizations.
The cost: $100,000.
This is the estimated cost of providing a home for a family of four in the Poloma Village being constructed by CCJ, in Chino Valley. Having been put on hold following their own alleged accounting fraud, the organization, board, volunteers and supporters have been able to rally behind their mission of eliminating homelessness. The group has moved forward despite a potentially devastating blow to morale and operations.
The cost: An estimated 167,000 nights of shelter for a homeless individual.
It all sounds discouraging until you realize that all organizations, private and nonprofits, can fall prey to the greed of others. Most are able to rebound, refocus, and march forward. But it takes faith, dedication and trust.
The cost: Not giving.
Why do we give? We give because despite the actions of a few, it’s the right thing to do.
Giving allows us to connect with people we may never know, and to support those that do the work we may never have the opportunity to.
We give because it creates a healthy community.
We give out of trust.
Trust that our gifts are not taken for granted. Trust that when some have lost sight of the mission, they will be held accountable and others will step in to make sure our gift finds the right person at the right time, creating the right result.
Do not let the few dissuade you from helping and supporting those in our community who are looking for that hand up, that word of encouragement, that opportunity to participate.
Have faith in trust.
Yavapai County has over 2,500 registered nonprofits.
Countless volunteers.
Countless hours.
Numbers more worthy than a billionaire.
Barry Barbe owns the El Gato Azul and Torme restaurants in Prescott, and is the energy and insight behind the Prescott Palette. His radio show, the Prescott Palette, is on KQNA 1130 AM, Saturdays at noon. Email: Prespalette@gmail.com.