Comments on: Op-Ed: The Case For Increased Financial Controls In Our Shuls and Schools

By: nfgo3

nfgo3 — Mon, 19 May 2014 00:26:34 +0000

Re comment 11: I have looked on line for many form 990′s, i.e., Internal Revenue Service Form 990, Return of Organization Exempt from Taxation Under Section 501(c), etc. There are a number of problems with the reports, including the following:

1. Many organizations are years late in filing the forms, and the IRS apparently, rightly or wrongly, lets them slide.

2. The forms are not required to be independently audited and are based solely upon management’s information and records. If management does not consult with accountants who understand generally accepted accounting principals (GAAP), the returns could be substantially inaccurate. Independent audits would result in substantial differences in the substance of the information in these reports.

3. The reports really do not provide enough information to enable a reader to understand the financial condition and operation of the organizations. Only an active governing board can really require management to provide accurate, meaningful information in the organizations’ financial statements.

4. I seriously doubt that management of many organizations takes to heart the importance of sound and meaningful financial reporting. For most organizations, they feel that if the IRS does not find outright theft, the organizations are doing an adequate job of financial reporting.

By: charliehall

charliehall — Sun, 18 May 2014 14:08:44 +0000

You can get form 990s from most charities off the internet. Guidestar dot org does a great service by getting them from the IRS and putting them online.

By: vashti_schwartz

vashti_schwartz — Sun, 18 May 2014 02:37:20 +0000

You can always demand a 990 from an organization before you make a donation.

By: 123456

123456 — Sun, 18 May 2014 02:31:16 +0000

Jake,

We can make it happen. All we need to do is to stop donating to non-profits and other charitable organizations that do not have an annual audit. It would not be a bad idea to start an organization that certifies monthly bank recs and annual audits are done. We rely on supervision for kashrus. Why not for the kashrus of the way money is handled at an organization we donate too?

It would not be a bad idea to require auditing of even organizations that are not non-profits but take in a lot of money from the Frum community such as Areivim. Their literature shows they paid out millions but since it is not required to be audited does anyone really know how much comes in or goes out?
Why would anyone endorse an organization that deal in such large sums of money and is not required to be audited?

Keep up the good work Jake!

By: Ben613

Ben613 — Fri, 16 May 2014 23:16:26 +0000

Why aren’t the schools open about how the tuition money is spent etc. if they have nothing to hide?

I was under the impression that at least in the US that the schools had a tax status such that they needed to show their books. Why all the secrecy?

By: peakman

peakman — Fri, 16 May 2014 21:00:09 +0000

good article but until the community itself will look at these action as stealing and treat the ones would who do this as gonoven nothing will change sadly.

By: Not getting involved

Not getting involved — Fri, 16 May 2014 20:51:58 +0000

Jake, you hit the nail on the head, as usual. They should implement your idea in the Kashrus world as well.

P.S. We shared some great chavershaft when we were together in our Dera – “Sorotskin 18″ back in the 80′s in Shaare Chaim.
We’re waiting for you to come visit us in Flatbush for that “one” Shabbos you have “off”, a year!
Keep up the Kiddush Hashem that you & your Mishpacha are always doing.
Y.G.

By: xyeshivaman

xyeshivaman — Fri, 16 May 2014 20:46:22 +0000

I cannot aggree more the article is 100% correct. The torah tells thte Yosef Hazadik in Mitzraim did not take a penny for himself the Seforono says ‘that Yosef who brought all the riches to Egypt did not send any money or silver to Cannan to his family’.
The halocho is that tzedoko money must be collected by two people and distributed by three people.
Rabbi (Mr) Goldstein is correct in his suggestion, a lay commitee made up of reputable people must be in charge of all disbursements and expenditures, but this committee should be made up of persons who are not friends, associates or relatives of the executive director or the menhael of the mossad.
I once heard from an Odom Godol whom I knew personally very well and his honsety was beyond reproof, he quoted from a famous chasidishe sefer ‘that the reason we see children beng dishonest or stealing chas vesholom is beacause the parents fed them with non kosher money’, and he explained to me that this means money earned with saying a lie, claiming goverment handouts when one is not entitled to this money and the list goes on.
Maybe if we will all be honest careful with our speech and respect one another the one above will have mercy on us and send us Moshiach.

By: Talmidchochom

Talmidchochom — Fri, 16 May 2014 20:12:09 +0000

Excellent piece and certainly reflects The knowledge and experience the writer of this op-’Ed writes. Internal controls will help prevent and identify instances of fraud. However, the mindset and culture of those involved in these mosdos has to be such that they welcome the concept of an annual audit and establishment and full implementation of an internal control system. For too many decades, nobody has ever looked at these nonprofit organizations as they have grown significantly in size,.. The Jewish community must demand change. Personally, I trust very few nonprofit mosdos where the EDs have been in place for far too many years and where the board of directors have been the same for years.

By: shazam

shazam — Fri, 16 May 2014 19:52:44 +0000

#1: “as long as your in the USA then YOU are living in Sedom.”

All other places on this miserable planet qualify for Sedom membership. No exceptions.

V’hameivin yavin.