CANDACE CONTI & THE NEW CONTRIBUTION DEMAND (page 3)

LV101

I'm going to ask my husband about this bond matter. I will post his answer.

frankiespeakin

I'm wondering if they will get called on misappropriation of funds when they submit their audit:

http://www.dorsey.com/files/upload/Dorsey-NY-Non-Profit-Revitalization-Act-060214.pdf

The amendments to be highlighted in this update are the following:
1. Improved Governance and Oversight
A. Tighter Restrictions on Related Party Transactions
B. New Requirements for Conflicts of Interest Policies
C. New Requirements for Whistleblower Policies
2. Enhanced Audit and Reporting Requirements
A. Audit Committee Oversight Requirements
B. New Definition and Requirement of Independent Directors
C. New Revenue Thresholds for Financial Reporting Requirements
D. Right to Petition the Supreme Court to Evaluate Alleged Wrongdoing
3. Streamlined Administrative Processes
A. Elimination of Types of Not-for-Profit Corporations
B. Allowance of Electronic Communications
C. Simplification of Approvals of Substantial Transactions
D. Reduction of Barriers of Entry for New Not-for-Profit Organizations
E. Simplification of Committee Types
F. Reduction in Board Approval Requirements for Real Property Transactions
4. Certain Other Amendments
A. Personal Jurisdiction
B. Agent for Service of Process
C. Prohibition Against Employees Serving as Chairman of the Board
D. Court Ordered Indemnification

http://www.ssireview.org/articles/entry/ethics_and_nonprofits

Ethics and Nonprofits

Unethical behavior remains a persistent problem in nonprofits and for-profits alike. To help organizations solve that problem, the authors examine the factors that influence moral conduct, the ethical issues that arise specifically in charitable organizations, and the best ways to promote ethical behavior within organizations....

Causes of Misconduct Ethical challenges arise at all levels in all types of organizations—for-profit, nonprofit, and government—and involve a complex relationship between individual character and cultural influences. Some of these challenges can result in criminal violations or civil liability: fraud, misrepresentation, and misappropriation of assets fall into this category. More common ethical problems involve gray areas—activities that are on the fringes of fraud, or that involve conflicts of interest, misallocation of resources, or inadequate accountability and transparency.

Research identifies four crucial factors that influence ethical conduct:

Moral awareness: recognition that a situation raises ethical issues

Moral decision making: determining what course of action is ethically sound

Moral intent: identifying which values should take priority in the decision

Moral action: following through on ethical decisions. 6
People vary in their capacity for moral judgment—in their ability to recognize and analyze moral issues, and in the priority that they place on moral values. They also diff er in their capacity for moral behavior—in their ability to cope with frustration and make good on their commitments.

Cognitive biases can compromise these ethical capacities. Those in leadership positions often have a high degree of confidence in their own judgment. That can readily lead to arrogance, overoptimism, and an escalation of commitment to choices that turn out to be wrong either factually or morally. 7 As a result, people may ignore or suppress dissent, overestimate their ability to rectify adverse consequences, and cover up mistakes by denying, withholding, or even destroying information. 8

A related bias involves cognitive dissonance: People tend to suppress or reconstrue information that casts doubt on a prior belief or action. 9 Such dynamics may lead people to discount or devalue evidence of the harms of their conduct or the extent of their own responsibility. In-group biases can also result in unconscious discrimination that leads to ostracism of unwelcome or inconvenient views. That, in turn, can generate perceptions of unfairness and encourage team loyalty at the expense of candid and socially responsible decision making......

Searcher - The bond is called a supersedeas bond and this is normal in jurisdiction. The states require that a bond be posted more than the amount of judgment, accrued interest, costs, etc. The company (Watchtower) has to pay a fee for the bond. If she wins, she doesn't have to go collect on the judgment but the bonding company just pays her. If the bonding company has to pay her they immediately seek indemnity from the Watchtower.

So it gives Candace the ability to immediately collect on the judgment if she wins on appeal. With the Watchtower posting a bond the plaintiff cannot execute on the judgment until she wins the appeal. If they don't post a bond she can collect. The bond stops her from executing on the judgment until that time.

Hope this helps and I explained ok. If any questions I'll get more info.

LV101

There are times when the court won't ask for a bond - like when it's some mega corporation that they're certain has serious $$$$/assets to back them up.

villagegirl

Can't we just send the contribution cash directly to Candace? Iownmylife

hahahaha love that comment IomL

OUTLAW-

The WBT$ is Very Capable of Enforcing Anything they Want..

They`ll take Your Friends,Your Family and Your Life..

So true outlaw, well put, and the old hardliners are saying things

like, how "exciting" all the new changes are. How the "work" is

"really increasing" and the new dumbed down magazines "simplify

the message" for "all those coming in" Deaf, Dumb and Blind.

.

Iown Mylife

lol! Thank you, villagegirl! Candace is one of my heroes - i don't want her payments to be arriving late. Those guys in the WT accts payable dept might be tempted to divert our contributions from the Pay Candace fund to the Buying Unbelievable Luxurious Villas for the GB fund.

Marina

frankiespeakin

The removal of the label "Kingdom Hall Construction Worldwide" on Kingdom Hall contribution boxes is replaced by the even more general label "Worldwide Work" no doubt is done because they are going to be independantly audited, and clearly the old label leaves them open for fraud and the misappropriation of funds. My question is: Can they now use money that was donated and designated in the past for Kingdom Hall Construction and use it for something else and not charged with misappropriated funds or fraud? Will an independant audit give them a "Adverse Opinion" or a "Disclaimer Opinion"*?

*There are four types of reports that an auditor could issue: "Unqualified Opinion" (this is the type of audit you hope for); "Qualified Opinion" which signals that the auditors found one or two situations where the nonprofit is not following GAAP, or that the organization is following GAAP in most cases although perhaps not all, but overall there is not a material misstatement of any financial position(s); "Adverse Opinion" (which signals that the auditors found a material misstatement or that overall the organization is not conforming to GAAP); or a "Disclaimer of Opinion" report. Either one of the first two reports is preferable to either the adverse opinion or a disclaimer report. The Disclaimer report essentially signals: "Something prevented us from forming an opinion, therefore we refuse to do so." Receiving an Adverse Opinion or Disclaimer of Opinion can have a serious negative impact on efforts to obtain funding for your organization. - See more at: http://www.councilofnonprofits.org/nonprofit-audit-guide/what-is-independent-audit#sthash.854lKdAz.dpuf

Contribution boxes: As noted above, on May 1, 2014, each Kingdom Hall should have only two types of contribution boxes, one labeled “Local Congregation Expenses” and one labeled “Worldwide Work.”
• What should be done with existing “Kingdom Hall Construction Worldwide” boxes or boxes set up to accept donations for a local building project?
These boxes will no longer be used for accepting donations in support of Kingdom Hall or Assembly Hall construction. They should be removed or relabeled to accept donations for the worldwide work on May 1, 2014.
• What type of expenses can be paid from funds received in the “Local Congregation Expenses” box?
These funds should be used to pay approved congregation expenses, including Kingdom Hall operating expenses, minor renovations, and repairs (through the operating committee, if applicable), as well as for all monthly resolved donations that are sent to the branch office.
• Are there any changes to the existing “Worldwide Work” box?
No. Funds received in the “Worldwide Work” box will continue to be forwarded to the branch office each month. No congregation expenses or monthly resolutions should be paid from these funds.

frankiespeakin

I am also wondering about this the legality of this change/qualifier in the WT's loan arrangement and forgiving of debt and how it will look in the books to an independent auditor:

• What amount should be used for this new resolved monthly donation?
The elders in congregations currently making loan repayments would likely propose a resolution that is at least the same amount as the current monthly loan repayment, keeping in mind that donations will no longer be received from the “Kingdom Hall Construction Worldwide” contribution box.The elders in congregations without loans or those having standing resolutions to support Kingdom Hall construction worldwide should take a confidential survey of all publishers to determine the amount of the new resolution. This can be done by passing out slips of paper to be filled out anonymously by the publishers indicating how much they are able to contribute monthly toward local congregation expenses, including the resolution to support Kingdom Hall and Assembly Hall construction worldwide. At the time the survey is taken, it may be helpful to also review with the congregation the average monthly operating expenses that need to be covered.

So if the debt is forgiven on the books, but this little qualifier shows it is not especially when the CO comes and puts pressure on the congregation to at least cover the old debt in their "voluntary/pledge donations. Is this legal?

Calebs Airplane

marked

joe134cd

Interesting

CANDACE CONTI & THE NEW CONTRIBUTION DEMAND

Ethics and Nonprofits

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