It’s a Zoo Around Here

We go from the politician who seems to understand nonprofits (Dan Malloy, potential candidate for governor of Connecticut and the subject of my last blog) to those who seem pretty clueless about nonprofits. I’m speaking about the city of Tampa, which wants to reinvent the wheel. Late last year, a city audit revealed that the Lowry Park Zoo—recently rated the number one zoo in America by Parent’s Magazine—wasn’t the number one best managed nonprofit in America. Far from it.

The director was apparently taking animals and other Zoo property to his ranch and a for-profit animal park he is creating. So, the City of Tampa is up in arms because in addition to the Zoo being on City property and the animals technically belonging to the City, the City gave almost a half a million dollars to the Zoo. And Tampa should be up in arms. Naturally, it wants to strike back and prevent such maneuverings in the future by the Zoo and all of the hundreds of other nonprofits to which the City gave more than $2.8 million this year, and presumably has done in the past and will continue to do so in the future. But is its proposal the right answer?

An ordinance has been proposed by City officials that would require the following of all nonprofits seeking City support. 1. Nonprofits would have to have a conflict of interest policy prohibiting financial transaction with the organization, executive staff (how come only executive staff? why not all staff, their families, etc.?), board members and for-profit organizations (why not nonprofits?) unless there is a competitive bid process. Excuse me: having a conflict of interest policy—and one that is even more comprehensive than this—has been a best practice standard for nonprofits for—well, forever. As has having a policy of competitive bids.

The new Form 990 makes nonprofits report on their conflict of interest policy: do you have one; how many conflicts came up this past year; how did you handle them? The question of whether an organization had a conflict of interest policy first appeared on the 2006 Form 990. Wonder how the Zoo answered it! 2. Nonprofits would be required to file an annual financial report with the City’s finance department, and answer questions like how much board members have been compensated.

Excuse me: but that’s been a Form 990 question for quite some time. Nonprofits would have to adopt an anti-nepotism policy and a whistle blower policy. Hello! Anti-nepotism is one of those elements of a good conflict of interest policy, and Sarbanes Oxley, back in 2006, required all organizations—for-profits and nonprofits alike—to have a whistle blower protection policy. My point is that all of the “requirements” that the City of Tampa wants to put on nonprofits are already in place. (I hope someone on City Council knows and before time is spent and dollars wasted debating this redundant piece of legislation it is stopped.) And these requirements haven’t stopped the misuse of funds, the collusion, and the violation of public trust.

Creating policies required by funders, the IRS, etc. doesn’t make people behave better, correctly, whatever. Creating policies are simply hoops that people have to go through to be in compliance in order to make the funders, the IRS, etc., happy. It is the people who make those policies and who must enforce those policies that make a difference. If Tampa wants to see the behavior of the Lowry Park Zoo (and others doing similar things) cease, it should take some of the millions of dollars it gives to nonprofits and pay to educate the members of the boards of those organizations so that they understand the full array of their responsibilities. So that they understand it is their responsibility to create a good sound conflict of interest policy and bid policy, to have clear financial statements and to review the performance of the executive director, as a few examples.

And then, equally, if not more importantly, they must understand that they must hold themselves, staff and the organization as a whole accountable. We do not need more hoops; we need board education. Next week: More about Lowry Park Zoo and what charity reports don’t tell you.