Q1. Yes, the board and professional staff of the organization are accountable for the activities in the organization
Board
Board is responsible for running daily organizational operations in every aspect, such as general management, financial transactions, future organization's plans, and strategies of the organization. The board provides the public or shareholders with the organizational performance and financial reports showing how the internal organizational structure operations. In this case, the responsibility and accountability lie on the board for the laundering activities that have been in the organization for many years without their knowledge. The accountability comes through the lack of responsibility and dereliction of duty under the board's jurisdiction since they are the ones to detect such activity before it escalates within the entire organization. The board should have ensured the proper keeping of the account books within the organization to detect the laundering activity scheme by the head of the council.
Delegate your assignment to our experts and they will do the rest.
Professional staff
The professional staff within the organization are also responsible for the better performance of the firm. Their accountability in such activities is inevitable since they are a part of the organization structure performing its goals and missions. The professional staff know about detecting any mischief within an organization and act at whistleblower to the responsible authorities before matters become worse. The professional team in the Metropolitan Council on Jewish Poverty should be accountable for the loss the organization has undergone through the mischievous financial transactions.
Q2. How such issues take away from the mission of the organization
Yes, they do because the organization's mission focuses on the profitability and future prosperity of the specific firm. The issues, such as the one committed by the former head of the Metropolitan Council of Jewish Poverty, interferes with the organization's mission. The issue is money laundering that harms the organization's image and national economy. However, irrespective of how other people view it, such activities damage not only the financial institutions directly, but also the nation's productivity in different sectors. It influences the organization engagements in international collaboration and decision making in significant issues such as the capital flows and policy contribution (Chen & Taylor, 2013). The issue taints the organization's brand image spoiling its internal reputation and financial collaboration of major financial institutions in the country.
The loss of reputation damages the organization's plan missions of development through the distortion of its capital flows and economic growth. Professionally, many employees within the organization would prefer not associating with it because of the existing scandals hence seeking resignation, reducing the organization's performance. Such money laundering activities spoils the organization's mission by weakening the organizational structure and attracting criminals and corruption, which is demeaning to the organization. The criminal financial operations initiated by the head of the company would haunt its development strategies since criminal money attracts crime leading to the creation of a criminal network that is unhealthy for the organization's financial advancements. The unnecessary loss of cash through corrupt deals and skimming would affect the organizational growth leading to its languishing status. Poor management and uncertainty would put the organization at risk while satisfying single individuals within the high ranking management cycle. The laundering activities require a ring of third parties assistances such as notary publics, lawyers, and corrupt government officials who might a negative view of the entire organization structure. The negative reputable hampers the financial activities that would reduce organizational focus and goals.
Q3. How people view nonprofits in general and their executives and governing board specifically after such a fiasco
The nonprofit organizations are universally helping- oriented organizations assisting underprivileged individuals in society. They represent a chain of donors wishing to offer financial assistance to the poor by providing basic and necessary social amenities. The executive and the government body of the nonprofit organizations engage in the discussions on the funding of the growth of the organization by performing the necessary missions and goals of every organization.
The fiasco in the case of the Metropolitan Council on Jewish Poverty has a negative view of the nonprofit organizations. The act makes the nonprofit organizations seem like money laundering schemes to fleece unsuspecting donors at the expense of charity or the poor (McKinley, 2014). The act of William Ropfogel brings a new twist to the public view on the nonprofit organization through his lies and corrupt means of attaining money preserved for helping destitute people in society. As the former head of the Metropolitan Council on Jewish Poverty, Rapfogel colludes with the insurance companies to fleece money from his organization through dubious schemes of money laundering. The head of the council is engaging in corrupts activities such as overpaying the council's insurer, Century Coverage Corporation of Valley Stream N.Y. while informing the insurer to initiate political contributions in the favor of preferred candidates.
Such schemes would portray nonprofit organizations as corrupt organizations focusing on empowering the affluent political people instead of helping the poor in society. The fiasco would also show that corrupt and prominent leaders duping the society to satisfy their financial interests manage such organizations. The behavior similar that of Rapfogel would make many donors fear to invest in the charity organization citing lack of confidence because of lack of transparency and money laundering activities that have recently been common in the nonprofit organization sectors. It also cites the lack of proper management and irresponsibility in the nonprofit organizations reflected through Rapfogel's confession to the dedicated officers and board for failing the organization.
References
“ Ex-Met Council Chief William Rapfogel Arrested In $5M Financial Scam” [Video file]. https://www.youtube.com/watch?v=omylTNJSjjs (2:00)
Chen, D., & Taylor, K. (2013, August 12). Power Broker, Fired, Faces Inquiry on Political Donations. The New York Times . Retrieved from http://www.nytimes.com/2013/08/13/nyregion/attorney-generalinvestigating-new-york-power-broker.html
McKinley, J. C. (2014, April 24). Philanthropist Admits Stealing More Than $1 Million From Charity. The New York Times . Retrieved from http://www.nytimes.com/2014/04/24/nyregion/rapfogel-pleads-guiltyin-scheme-to-loot-new-york-charity.html
