March 20, 2008 | Read Time: 1 minute
NEW BOOKS
Zone of Insolvency: How Nonprofits Avoid Hidden Liabilities and Build Financial Strength
by Ron Mattocks
Between financial stability and total bankruptcy lies the “zone of insolvency,” or a time of financial distress, writes Ron Mattocks, a nonprofit consultant.
He adds that as many as a third of all charities “operate perpetually in financial distress,” which may cause “a weakening of the fiscal viability and service value of the nonprofit community at large.”
Mr. Mattocks’s book aims to help trustees and charity leaders recognize whether their organizations are creeping toward insolvency, and figure out what they should do about it.
The first section of the book is devoted to 10 case studies of prominent groups that have experienced financial troubles, according to Mr. Mattocks, and the lessons that can be learned from their stories.
Several of the cases ended in criminal prosecution of charity officials, including Oral Suer of the United Way of the National Capital Area and John G. Bennett of the Foundation for New Era Philanthropy. Mr. Mattocks also writes about groups that successfully staved off financial collapse and others that shut down after determining that their missions had been fulfilled.
The other sections of the book examine how to define and detect financial distress, what board members are responsible for, and what steps to take to either strengthen the group or dissolve it. Each chapter ends with a set of of five questions board members should ask at meetings so they can make sure their organization does not fall into financial trouble.
Publisher: John Wiley & Sons, 111 River Street, Fourth Floor, Hoboken, N.J. 07030; (201) 748-6000; fax (201) 748-6088; http://www.wiley.com; 240 pages; $45; ISBN 978-0-470-24581-1.
