- Thursday, February 27, 2014
Contact: Jack Horak; Reid and Riege P C (Connecticut, USA)
In this issue we will discuss two topics. The first concerns pending changes in the way auditors present endowment funds on nonprofit financial statements. While this subject may sound overly technical, its implications are significant and it behooves nonprofits and their donors to understand the issue. Second, we will discuss a recent jury verdict finding the directors and officers of a failed nonprofit personally liable to the nonprofit's unpaid vendors. This case is interesting because the jury parsed the difference between negligent board conduct (no liability) and reckless board conduct ($5,750,000 of liability).