Charities Spending Report

" I've been laid off scandal shining a light on several characters and how -- bullets on government who makes the decisions about where the money is invested already rules of all in this. Let's ask Ken bug up his the president and executive director all of charity navigator can welcome the program and Q all right. It fine. I'm a charity and I've got a border directives and on the board sets a money manager. I the charity gives money to that money manager to go out then manage on behalf of the charity and is that a conflict of interest. No actually it is really the obligation of the board to help to manage the money of the charity. And it's very important that the charity had advisers people on the board with that kind of an expertise okay -- general it's a good idea okay on the charity on the board. The money manager sits on the board we get the money manager he goes -- he manages the money but he charges the charity offbeat. This has happened with the laid off scandal. Is that a conflict of interest. It's not best practice it's generally. The best practice that board members do not make a profit on their work on charitable boards if it's fully disclosed that the board knows about it and it and approves of it. It could be done but it's not the best practice it happened in the laid -- case -- it happened widely. No not to my knowledge generally most board members do not make any money off of there tenure on aboard. Best practices you really do need to have a lot of board members with that kind of expertise and they should be conservative in how they invest the charity's money that should not be in high risk ventures. Why should we go into hedge fund the pronouncements that's what attack is doing going into risky hedge funds it's a very very good question but as we've seen very. Wise people have made these decisions. Even outside of the secretary. Let's ask about liability. The charity gives my to a somebody on his board to manage -- then he gets it tonight off the money is lost west liability the board. With a bullet to bullet -- the board ultimately has responsibility for the decision making of this charity. They steer the organization and they are ultimately liable and so when these that it is it is adopted the bull and to do due diligence. On behalf of the money manager to whom it gave the money. Yes the board does have the ultimate responsibility for the judgment as to whether or not they give it to an individual like this. That has been going to go ahead and make risky. Investment decisions yeah -- that you follow the whole world of charitable giving and you do that is that's what your company does. Is this just a huge it. The old chances this made offering it's it's devastating when you mr. division. Definitely between that and the economic downturn this is the worst we've ever seen. You know the good news here is that -- charitable giving is somewhat recession resistant so. People are going to give more than you would think in a downturn like this but it's definitely a terrible hit the the amount of demand. Versus what they're bringing and it's a very hard times we hate to hear it but can look at thanks to regain his objective information -- Christians --"