WashPo | Mismanagement has bankrupted a D.C. nonprofit, endangering programs for at-risk youths, board members say
This is very, very sad news. A lot of east of the river organizations rely on DC Trust funding for programming and this will no doubt be a massive blow. The Advoc8te also sends thoughts and prayers to the employees of the DC Trust who may soon find themselves without jobs. Such a sad tale and further proof that organizations -- particularly nonprofits -- need to be vigilant, proactive and strategic in how they apply services, manage finances and hold themselves accountable. Lord knows at time it can be a struggle -- and a frustrating one at that -- but nonprofits that are created to serve a public need have a greater responsibility.
The Advoc8te hopes that nonprofit leaders are asking themselves tough questions today and undergoing an honest critique of their in-house processes and their strategic plans.
The biggest obstacle to "great" is "good."
Excerpt:
A D.C. nonprofit that receives millions of taxpayer dollars each year is bankrupt and will be dissolved to cover debts from exorbitant spending on and by staff, including the misuse of organization credit cards, officials say.
The DC Trust, long known as the DC Children and Youth Investment Trust Corp., is supposed to keep afloat more than 70 after-school and other programs to help at-risk youths and to control gang violence in the nation’s capital.
But the nonprofit lacks funds this year to pay millions in promised grants as well as its own operating costs. As a result, its board voted in private to shutter the fund, directing remaining cash to after-school and other programs for five more months, according to its chairman, Marie C. Johns and another board member, William Treanor.
“This is painful for me, I love this community,” said Johns. “But I also believe in accountability, and we couldn’t continue in a reckless way.”
The trust emailed dozens of nonprofits Tuesday saying their funding would continue through the end of the city’s fiscal year in September, but it is unclear how that will happen.