The Board's Dilemma

David Lynn Hoffman, Stuart Warnock, Debora Gilliard

Abstract


The Board’s Dilemma centers on a volunteer board serving a social entrepreneurship organization that was the Executive Director’s dream. The organization started as non-profit serving individuals with disabilities by providing employment related services including skills evaluations, job placement in one of IRPs job opportunities, some job coaching, and support services such as some medical and psychological assistance.  The organization morphed into a social entrepreneurship by purchasing several fast food franchises that supplemented the funding needs created by decreasing government support for the disabled. During a board meeting the Executive Director informs the board that the agency cannot meet current and past IRS debts.  The board must decide whether to continue or not and whether they would be individually liable. 


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 University of Houston-Clear Lake