Few high-profile transgressors put charities under microscope

The U.S. charity sector is much admired abroad, yet here at home it's subject to intense and sometimes painful scrutiny -- both from those within the philanthropic field and from the outside.

In recent years, some of our most historically revered charities -- the American Red Cross, the United Way, and the Nature Conservancy -- have been caught up in disturbing investigations. In other instances, regulators have uncovered scandals in charities that had previously enjoyed widespread public admiration. We've been made aware of groups that have violated the public trust to attain their goals more quickly or easily.

Each time such a story comes to light, donors feel let down. Their faith in the nonprofit sector lessens and they begin to eye other -- if not all -- charities with suspicion. To an extent, all charities suffer because of the transgressions of the few. How did it come to this -- to so many donors questioning how and why they should give? And how can trust be restored?

The spotlight is shining brighter on the nonprofit world than ever before. In part, this is because of the unprecedented wealth coming into the sector, and also because of transformations resulting from the Internet. As a result, the media now gives more coverage to charities than before, often carrying out their own investigations.

[Excerpt of an article by Cristine Cronin, BusinessWeek]