GIVING

Just when you thought you'd heard enough about the Bernie Madoff scandal, here's one more musing.

It's hard enough to grasp the value of $50 billion.

It's even more difficult to think about the devastation to the individuals and families who poured their life savings into his hands and woke up one day with nothing at all.

But what cannot be comprehended is the total devastation of the charitable and community agencies that trusted and invested not for their personal gain or sustenance, but for the sustainability and care of those in need.

This event has caused much angst in the nonprofit sector. And anger.

The Southwest Florida Community Foundation, although unaffected by this scandal since we did not invest with Mr. Madoff, is deeply concerned about the charities involved and the clients who relied on their services.

Nonprofits have been under increased scrutiny by Congress during the past 10 years. We have strengthened record-keeping, improved our boards, become more accountable, created consistent standards of operation, and the list goes on. Because so much of our livelihood depends on the relationship of trust between the donor and the agency (and not solely the financial gains), we hold ourselves to a much higher standard of due diligence and care than the corporate sector. We welcome increased scrutiny, which helps the nonprofit sector to improve and grow stronger.

At the very core of the nonprofit sector is the mission to address the needs of the community for the public good. The term "nonprofit" doesn't mean we can't make money; it means that the money we make must be poured directly into our mission and not for the personal gain of the investing stakeholders or leaders.

This is one of the key differences between a nonprofit and a business. The Internal Revenue Service designation of 501(c)(3) is given to organizations that provide a public good, and donors can receive the benefit of tax-deductible contributions.

At the very basic core of the corporate sector is the mission to make a profit from the exchange of goods and services. Unlike a business, most of our "investors," or donors, are not getting a direct product or service in exchange. They are getting our guarantee that, in exchange for their support, we will carry out our mission to provide a superior level of care and support to the most needy and vulnerable in our society.

This is implemented in partnership with

other nonprofits in hundreds of different ways: meal delivery to senior citizens, medical care to homeless families, job training for foster teens, prescription assistance for those infected with HIV, haircuts for single moms, pet programs for Alzheimer's patients, mental health care for abused children, and other creative programs. That is why nonprofits will gladly provide annual reports, tours of the facility or invite volunteers to be a part of the work at hand. These are the ways that nonprofits can show how we are executing our mission. Trust is the grease that makes our charitable gears turn.

Nonprofits are lean operations. Budgets are created and scrutinized. Program impact is measured. Money is invested carefully. In both corporate and nonprofit sectors, leaders must consider all of the standards for operational success, including the product or service they are providing, human resources, sustainability, leadership and ethics.

But where was the oversight of fund? The nonprofit sector, arguably the poorest societal sector in terms of profit, is under continued oversight by Congress and our donors to strengthen operations and improve transparency on limited budgets and funding. Where were the regulators in this case?

The Madoff scandal is a betrayal of trust of not just the charities involved, but a betrayal of their clients and humanity at large. In much of the same way donors trust us to use their funds in good faith to carry out our mission, nonprofits trust that the individuals who are charged with preserving their financial stability will act with integrity and care. The impact of the actions of one man, and the inaction of those charged with the oversight of his actions, are staggering and will be felt for many years to come.

Nonprofits must continue to be diligent in financial management and mission delivery. And we all must maintain the faith and hope we have in our donors and in each other that we can overcome the misdeeds of a few. In this time of religious significance and time of giving, the Southwest Florida Community Foundation, and its two divisions, the Bonita Springs Community Foundation and the Good Neighbor Community Foundation of Sanibel Captiva, offer gratitude and thanks for the your support and trust.

The Southwest Florida Community Foundation has been supporting the communities of Lee, Charlotte, Collier, Glades and Hendry counties through endowed funds for nearly 32 years, and during that time has provided more than $30 million in grants and scholarships. For more information, call 274-5900, or visit www.floridacommunity. com.