Reply to the nonprofit Wreaths Across America is a front operation for for-profit wreath company

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Reply to "the nonprofit Wreaths Across America is a front operation for for-profit wreath company"

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[quote=Anonymous][quote=Anonymous]I could take or leave wreaths on headstones, but I don't see the problem here. The product (wreaths) costs money - materials, staff, transport. Then on top of that, they are priced higher because some of the price is fundraising for other groups. No sane donor thinks the $22 cost of a wreath is its wholesale cost.

If you want to go out of pocket to source and assemble thousands of wreaths, go for it. But there's a reason an existing wreath company is able to do it and you can't/won't. [/quote]

I kind of agree with you...but in theory, the non-profit has a fiduciary obligation to procure wreaths at the best possible price, regardless of the vendor.  The article basically addresses the conflict:

“If it is the case that the for-profit vendor would collapse or need to significantly downsize were it to lose the business of the charity, it is a glaring conflict of interest to have owners of that vendor on the charity’s board or in key staff positions,” said Laurie Styron, CEO and executive director of CharityWatch, an independent charity watchdog group.

“The owners and their close relatives should either sell off their financial interests in the for-profit vendor, or the interested parties should resign from the charity and allow an independent board to recruit leaders in whom the public can have confidence in their capacity to act independently.”

Let's face it, the for-profit wreath business would never have become as large as it is without the NPO buying the wreaths.[/quote]

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