January 17, 2004
FRITZ SCHRANCK notes that the IRS's audit of The Nature Conservancy is probably a harbinger of stricter scrutiny over the finances of nonprofits. I think that's probably a good thing.
UPDATE: Tyler Cowen has more background, and observes: "The institution has over $3 billion in assets, so this is hardly a small matter." He also notes reasons why this sort of problem likely exists at other nonprofits as well: " This area is just ripe for institutional failure. Too many donors would rather look the other way and pat themselves on the back for their generosity. They do not want to hear bad news, which is one reason why news about bad non-profits often remains hidden for so long."