A Tampa Tribune article published last Saturday raised questions about the activities of the executive director for Tampa's Lowry Park Zoo in connection with his for-profit venture, Safari Wild. According to the article, "Lowry Park Zoo is a nonprofit organization that has been funded with millions of dollars in taxpayer money. Safari Wild is a fledgling, for-profit business owned by [the executive director and a St. Petersburg veterinarian]."
The Tribune reported that "a series of e-mail messages obtained by The Tampa Tribune shows that the zoo's paid administrative staffers have worked to promote and garner political favor for [the Executive Director's] private animal park, which is not open and remains mired in state and county permitting issues. It also appears that the zoo's staff has done work for Safari Wild without a vote of approval by the zoo's board."
According to the Tribune:
"If the executive is using the zoo as a private pool of resources to develop a for-profit venture, without board approval, it could be improper, said Daniel Anderson of Tampa. Anderson and other attorneys for nonprofit organizations said the fact that the zoo receives taxpayer support amplifies the potential conflict.
Mr. Anderson expressed no opinion to the reporter covering the story as to whether the relationship is improper, only that board approval is required when a nonprofit executive director uses resources of the nonprofit for the benefit of his own for-profit venture.
This story points out the importance of disclosure, consent, and documentation with regard to the private activities of nonprofit executives. Executive Directors are stewards of nonprofit resources, and these resources should only be used for the benefit of for-profit concerns when:
1. The missions of the nonprofit and for-profit organizations are compatible:
2. The Executive Director has disclosed his/her self-interest in the for-profit venture to the Board of Directors;
3. The Board of Directors has voted to approve the use of nonprofit resources for the benefit of the for-profit concern; and,
4. The vote of the Board of Directors is recorded in the minutes of the Board meeting.
It is important to take each of the above steps before committing the resources of the nonprofit to the for-profit concern, otherwise nonprofit executives and board members may be subject to public criticism. This is particularly true in cases where the nonprofit receives public funding. Such activities might also jeopardize the tax exempt status of the organization, a factor which should be of critical concern to nonprofit executives and board members.