Opinion

Foundation CEO: Nonprofits' misuse of grants is rare

By MCCRAY BENSON, Published: January 26, 2026

Established in 1982, the Community Foundation of Henderson County has distributed more than $102 million in grants to nonprofits over the past 44 years.

Most fund recipients are serving our local community in and around Henderson County. Use of funds for the purposes intended is taken seriously by these local organizations and we can attest to the fact that any misuse of charitable funding is extremely rare. So rare that any occasion of improper use becomes big news, as it should. It should be the common expectation that grants are used as presented in their funding applications and accomplishes projects or improves operations as intended.

When we are asked to grant funds, CFHC conducts due diligence on the organization before the award is considered, tracks progress on projects and then looks at results after funds are expended. Out of many hundreds of grants that we award, I can attest that misuse is NOT “something that happens all the time,” as a speaker in the Jan. 15 story said. To the contrary, many times awards have stimulated even greater results than first expected. We visit organizations in person, we interview staff, leadership, clients when available and see them in action, often. We have experienced a level of care by organizations and their boards who returned portions of funds when their project was achieved more efficiently; this is rare but it happens more often than misuse.

Nonprofit organizations are to be governed by volunteer board members who rotate with new members coming in to refresh oversight that represents expertise, prudent wisdom and close oversight of staff and operations of the organization. To be less vulnerable to the possibility of fraud or misuse it is recommended that there be five or more volunteer members on a nonprofit’s board directors.

Board members do more than attend meetings. They review financials, hear from constituents (donors and clients) of how the organizations is working, and participate in the broader community to see how the organization is addressing the needs within their mission or purpose. They are the vital link between the community and an organization’s work.

Nonprofits belong to the community, not a CEO or a small group of shareholders. Addressing community issues that the organization serves and upholding the rules of nonprofit operations is serious work and many of our community members volunteer their time, wisdom and personal resources to do this work. If any group needs help to achieve that oversight or access to understand how nonprofits work, we are here to help as well as numerous nonprofit organizations with experience can help.

When a case of misuse or inappropriate actions occur with a nonprofit, it is important to not pass it over as “these things just happen.” We should talk openly about how we are addressing the challenges we face in our community. Our nonprofit organizations, for-profit businesses and government programs can and should have the capacity for working together to address these issues. Community Foundation of Henderson County is proud to be a part of the nonprofit community. Henderson County and our surrounding area have extraordinarily better living directly because of the health and effectiveness of our nonprofits. Much can be credited to the integrity of volunteer board members, professional staff and involved contributors all overseeing their work — from houses of worship to health provider systems, animal welfare organizations, the arts, crisis services, education opportunities.

The Community Foundation of Henderson County will continue to champion integrity within our nonprofit community as they do the difficult, vital work of sustaining our community to be strong for one another.

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McCray Benson, president and CEO of the Community Foundation of Henderson County, submitted this column in response to the Lightning’s coverage of the bankruptcy filing of Only Hope WNC, whose former CEO Michael Absher remains jailed on 23 charges of sexual offenses against young people in its care.