ANOTHER VIEW: Nonprofits need closer scrutiny
A Northampton County Grand Jury recently painted a disturbing picture of the National Museum of Industiral History, which after 17 years, has yet to open its doors. It pays former Bethlehem Steel V.P. Steve Donches twice the going rate for an executive director. Board director Lee Butz has directed $2.8 million to his own construction management firm. But instead of being embarrassed by these findings, Donches and the NMIH board have circled the wagons, accusing Northampton County District Attorney John Morganelli of "personal antagonism." Their reaction demonstrates the need for much closer scrutiny of area nonprofits.
First, salaries need to be monitored more closely by the state. Former Properties of Merit Executive Director Sam Bennett once commanded an annual salary of $110,000 at a nonprofit whose annual budget was only $351,000.
Second, service on a non-profit board should never be a vehicle for personal gain. It should instead be an opportunity for a director to give back to the community/institution/organization. When personal profit becomes the motive, board decisions are skewed in bizarre and negative ways. If personal gain is a by-product of "good works" on a non-profit board, that board member should donate back the personal gain.
Third, service on a non-profit board should be term limited. This prevents any one incumbent from becoming an unequal force and influence over other board members. It also prevents the non-profit from becoming too comfortable and chummy. Board members should be prohibited from advertising membership on a board in any way that might lead to personal financial gain. They should also be barred from accepting contracts with or having a financial interest in any entity that does business with the nonprofit.
Donches and his supporters have pointed to a bad economy as a reason for his organization's failure. But over less time and in the same economy, Artsquest has blossomed on the city's Southside. Even though its focus has been music, it has done more to preserve this area's industrial history than the foundering museum. It is the logical and proven choice for preserving Bethlehem Steel history, and can accomplish that without giving any golden parachutes to the former steel execs whose bad business decisions resulted in the collapse of the area's largest employer.