This paper explores the key components of dysfunctional, criminal and deviant behaviours within and by associational and not-for-profit organisations, and their consequences in terms of practice, application and policy.
Abstract
This short primer explores the key components of dysfunctional, criminal and deviant behaviors within and by associational and not-for-profit organizations, and their consequences in terms of practice, application and policy. A rich literature review of major and minor nonprofit scandals—primarily in the West—but also in other countries around the world demonstrate the breadth and depth of nonprofit corruption, fraud and misuse of funds as well as misconduct and deviant behavior by individuals within and by organizations. These associations range from Mom and Pop-scaled voluntary foundations to transnational charitable organizations, and so-called “Dark Nonprofit Groups (DNGs)” that promote terrorism, hate, extreme political views and other noxious or bizarre ideologies. Summarized are the widely researched concerns regarding self-regulation of these organizations including weaknesses in management controls, issues with adherence to existing vision and mission statements; board and management accountability; internal and external fiduciary controls; and intra- and inter-governmental regulatory responses. The context of these wrongdoings are ensconced within the framework of a discussion of ethics, morals, and wayward interpretations of legal and ownership structures in prevailing cultures and societies. Consequences of nonprofit organizational misconduct and dysfunction reveal a universal need for more research into the dark side of the Third Sector; and additional accountability and transparency not only at the micro level—individuals and board members within the organization--but also at the state, federal and global level. Lastly, increasingly vocal activism of civil society is acknowledged to have given shape and direction to the new moral landscape of 21st century Third Sector agendas
