Mark Koscinski NFP, Uncategorized

Fiduciary Duty

The Wall Street Journal recently carried an article about how irate donors are going after university boards of trustees that used restricted funds to cover operating deficits. While the article didn’t address other NFP entities, the same logic applies there as well. While I am not a lawyer, I think I can offer NFP boards some advice on this topic

I would be willing to bet that most of these university boards did not simply raid the endowment, as the article states. The mechanism tapping these funds was probably borrowing against the endowment. The intention was to pay the endowment back with interest at the going rate. If that plan was successful, then all would be well. The Board would have accomplished its fiduciary duty to both sides of the transaction. The university program succeeded, and the loan was paid back. However, when the plan goes sideways, there are problems. To put it simply, the cash is gone, no matter how its transfer to the operating budget of the university was categorized or papered. The uncomfortable reality is the board was “on both sides of the transaction.” It has a fiduciary duty to protect the endowment while at the same time being responsible for the financial well-being of the college. The failure of the program harms not only the university but the endowment too.

I am also sure that board counsel has taken care of all of the legal niceties when it papered the loan. Nevertheless, it may not be enough. Irate donors who thought their money was going to a pet project only to find it was going someplace else can easily find an attorney who will sue on their behalf. The goal may not be to win but to bring bad publicity to the university, especially during recruiting season. The university administration may then settle to avoid the publicity.

If the university has trustees and officers’ insurance, the real target of the litigation is the D&O policy ( unless the trustees have substantial independent wealth). The insurance company and the insurance policy provide deep pockets for potential litigants. The insurance company will control the legal defense and can determine when to settle. The point is this: what is legally correct may not be morally correct. Of for that matter, even “publicity correct.” Directors and trustees need to make sure their “Is” are dotted and their “Ts are crossed paperwork-wise. They also have to ask themselves, what will happen if the borrowing from the endowment fails and becomes public? What type of media scrutiny will this generate? Can we afford the bad publicity? If the answer to that question is no, perhaps the whole funding strategy will need to be rethought.

Mark Koscinski Uncategorized

World Heritage Conference

I am happy to say I will be presenting some original research on Jan Hus and his impact on the Independent Catholic Movement during the World Heritage Conference to be held in Bethlehem, PA, in November 2026. The agenda, times, dates, and presentation schedule are included here. for the conference, and the title of my Poster presentation is included below.

Program – Conference of The Institute for Moravian History and World HeritageDownload
Mark Koscinski NFP, Uncategorized

Continuing Education for NFP Leaders

I have become active in the NFP space after taking a little hiatus. It was a needed break to stop burnout. During this time, I worked on and completed my D.Min. degree. I believe this gave me some fresh insights—and a renewed conviction: continuing education isn’t a luxury for NFP leaders; it’s a responsibility. Our organizations operate at the intersection of mission and management, compassion and compliance. That complexity demands leaders who are always learning.

First, the landscape is changing faster than ever. Donor behavior is evolving, digital fundraising and storytelling are table stakes, and emerging regulations—from data privacy to financial reporting—require at least a passing knowledge. A leader who relies solely on what worked five years ago risks making decisions with outdated frameworks. Ongoing learning equips us to anticipate change, not react to it, and to build resilient strategies rather than quick fixes.

Second, professional development directly serves our stakeholders. In the NFP space, resources are entrusted to us for maximum impact. When leaders invest in learning—whether in governance, program evaluation, trauma-informed care, or community engagement—we sharpen our stewardship. We make better budget choices, design stronger programs, and measure outcomes more honestly. The return on this investment shows up in lives changed, dollars well spent, and missions advanced with integrity.

Third, continuing education nurtures a leader’s inner life. Not-for-profit work is emotionally demanding. Burnout is real. My D.Min. journey reinforced that leaders need rhythms of renewal and spaces for reflection, not just new tactics. Courses, cohorts, and retreats can rekindle vocational clarity, deepen ethical grounding, and strengthen resilience. My cohort was a delight to work with, and I learned so much from them. When our inner life is healthy, our organizations feel it: clearer communication, steadier decision-making, and a culture of trust.

Mark Koscinski Uncategorized

Hello Again Everyone!

It has been a while since I have been here. However, that does not mean that I have not been active. Here are some of the things that have been going on:

–The Moravian University School of Business and Economics is proud to announce it ‘s business programs have once again achieved accreditation from the Accreditation Council For American Business Schools and Programs (ACBSP). for the next ten year cycle. This is a mark of distinction for our School, its programs, faculty, students and our alum. Please join me in congratulating Dean Sonia Aziz and other members of the faculty for this accomplishment! I was the coordinator of this project, and it was truly a ton of work.

–With Dr. Heather Kuhns, I have been co-authoring a blog for the Pennsylvania Institute of Certified Public Accountants. We have published a number of these blogs already. Their focus is the management of a CPA firm rather than the technical accounting. You can find them in other locations in this website. I have to add that Dr. Kuhns also was an instrumental part of the SOBE accreditation process, including the update of the SOBE website and writing about our compliance for ACBSP Standard 7.

–I am finishing up my course work for my D.Min. degree. On the the major project (akin to a dissertation.).

–I am also active in my church as an ordained deacon, and serve on the Bishop’s task force for licensing and programming for its seminary.

In short, a lot has been going on. I will be back to the Not For Profit blogging very soon!

Mark Koscinski Uncategorized

Back Again!

Hello Everyone!  I have been absent from here since the beginning of the Spring semester.  My only excuse is that my workload has been extraordinarily heavy recently.   During the past semester, I was promoted to associate professor and have picked up some additional responsibilities at the Moravian School of Business and Economics (SOBE).  Before I go on, I want to thank the members of the Board of Trustees, the Administration, our Dean, and my colleagues for their support throughout this process.   I couldn’t have done this without them.

So what else have I been doing in my spare time?  I have been tasked with leading the ACBSP reaffirmation efforts for SOBE and have been actively working on the Moravian answer to the 150 credit hour issue for CPA licensure. Much more about that subject in later posts. I continue to work on my second doctorate. We also completed a successful search for a new accounting professor at SOBE.  I completed one course already this Spring (my second overall), and am signed up for a  summer course.  I am considering taking another  course this summer and  have a working dissertation subject. My target completion date is two years from today. Perhaps that is overly optimistic, but as my favorite singer belts out, “if we’re all going someplace lets get there soon!”  I have also been attending the Catholics on Campus meetings whenever I can.  As I was discussing all of this with one of my colleagues he said to me, “Stop whining and get on with it!” Never was more sagely advice offered and accepted. 

As times change, we do leave things behind.  For the past few years, I have been the faculty advisor to Sigma Phi Epsilon, one of the fraternities on campus. Given my change in circumstances, I have reluctantly asked to be relieved of this duty.  I also dropped my membership in the Disciplinary Review Committee at the College. Effectively, I am trading working with students for some more administrative roles.  This is sad, since I enjoy working with young adults. Nevertheless, the wheels of progress continue to roll. 

Despite changing circumstances, some things do stay the same.  I will remain as faculty advisor to  Stitches, the craft club of Moravian.  It is hard to describe what this hardworking group of women have accomplished. Two of the recently graduated seniors have been accepted into doctoral programs.  Another is starting a master’s degree program.  Pound for pound, this group had the most academically gifted club membership at the College.  More importantly, they demonstrated great concern for the less fortunate.  Through their hard work, Stitches raised $700 for the local women’s shelter by selling crocheted Valentine’s Day and Christmas ornaments  This was no mean feat considering they were selling their wares to other students at less than market prices. Stitches members  also crocheted a dozen sets of scarves and hats that were donated to the same shelter.  It was a most satisfying semester for everyone involved.

Mark Koscinski Uncategorized

Legally Right But Morally Wrong

Many years ago, I recommended a tax planning strategy  for the bank I was working for. I thought it was a very slick plan and it truly was when it came to avoiding ( as opposed to evading) taxes. Tax avoidance is legal. Tax evasion is a crime.   Unfortunately, the strategy  looked very, very wrong when it hit the newspapers. Without going into details I didn’t personally profit from this action but the bank did. Despite this, and with hindsight, it just wasn’t the right thing to do.  As one of the directors of the bank said to me, “Mark, it was legally right but morally wrong”. There are many examples of this principle. Think about slavery.  For centuries it was legal in the United States but certainly ethically repugnant. 

 I learned a very important lesson that day.  Thinking about how people will perceive an action has to be included in the consideration of the action. The same director was later the Vice-chair of the Board of Trustees of the University of Pennsylvania.  She was one of the first (if not the first) female graduates of the Penn Law School. For those not following the latest news, the President of Penn resigned and is going back to teach at this same law school. Liz Magilll  was forced from her job when she, after  repeated questioning would not say  if calls on campus for the genocide of Jews would violate the university’s  conduct policy. Relying on what sounded like a legalistic defense, MacGill insisted this was a matter of “context”.  Those of us that work in academia understand academic freedom and how important it and context is.  I have wondered what my old director (who sadly passed away before her time) would say about this situation.  I can almost hear her say, “ Penn was legally right, but morally wrong.”  Perhaps the presidents of other colleges should evaluate their positions under this same standard. 

A similar situation has come up in the Vatican.  Pope Francis recently met with the staff of the office of Vatican Auditor General. He asked that disclosure of financial impropriety be balanced by “merciful discretion”.  Anyone that knows anything about auditing understands  auditors have a fiduciary duty to their client, in this case the Pope.  Francis was absolutely correct in asking for  confidentiality.  On the other hand, Francis was supposed to “clean up” Vatican corruption during his pontificate. One must ask in the wake of the trial of Cardinal Becciu for financial malfeasance writ large on a massive scandal (one financial deal on its own was said to lose $150 million dollars) whether this is the morally right thing to do. Aren’t donors entitled to see how their gifts have been squandered? 

 I have always been deeply distrustful of the excuse of letting something illicit  pass “for the good of the organization”.  This is often only code for “someone needs to be protected.”  In the case of the Vatican, too much water has gone under the bridge, and it is time to realize “merciful discretion” is interpreted by many as continuing to cover up corruption. Sunshine is the best disinfectant for the  disease of corruption. It is odd to say, but even the Pope can be legally right and yet morally wrong. 

The Ethics Resource Council advocates the use of the PLUS model of ethical decision-making.  PLUS stands for:

Policies–does an action conform to  the organization’s policies and procedures?

Legal–Is the proposed action legal?

Universal–Does the proposed action conform to the organization’s values and universal principles?

Self–does this action comply with my own view of right or wrong? 

I have proposed a variation of this model I have called PLUMS.  In the modern world, one has to consider how other people will view a proposed action.  How will it be perceived by others when it hits the media?  It is often a good idea to just step back and think about how your action will look when it hits X, Youtube, or Facebook.  Maybe this pause for reflection  can prevent you from doing something that is legally right, but yet morally wrong. 

Cardinal Becciu in better days…

Mark Koscinski Uncategorized

Giving

Even though Giving Tuesday has come and gone, we continue through the holiday season. Please remember to give generously to your favorite Not For Profit Organization. I am proud to say that Stitches, the crafts club of Moravian University crocheted hats and scarves for the local emergency shelter. They also raised $500 for the same organization by selling hand made Christmas ornaments and gathering donations. Stitches has a small membership, but they all have big hearts. Congratulations to the members, as they try to change the world by helping people as much as they can when they can

2nd stitches fundraiser-4Download
Mark Koscinski Uncategorized

For the Good of the Profession

For the Good of the Profession

This blog is usually devoted to not-for-profit organization management issues, but today I would like to deviate from that subject and talk about some developments in my beloved accounting profession.  As many of you are aware, the regulators in virtually all jurisdictions require 150 credits (five years of college education) for professional licensing as a certified public accountant (CPA). This has been the norm for almost four decades now. For instance, Florida was one of the first states to require a fifth year of college to qualify for a CPA license back in 1983. Other states fell into line until today only the U.S. Virgin Islands does not require 150 credits for licensure. 

 Interestingly enough, the extra 30 credits do not have to be taken at the graduate level or in a business related subject at all.  Students can satisfy the requirements by taking classes in any academic subject as long as the additional credits appear on a college transcript.  In recent years one of my students completed a second bachelor’s degree in music and that qualified her to become a CPA when she passed the Uniform CPA Examination.  Other students will complete their bachelor’s degree and then take additional courses at a community college. 

What was the purpose of requiring another year of college education?  Presumably the business world was becoming  and still is becoming) more and more complex and the profession recognized it over forty years ago.  As the American Institute of Certified Public Accountants (AICPA)  website (1) notes:  “A certified public accountant (CPA) in today’s environment must not only have a high level of technical competence and a sense of commitment to service, but must also have good communications and analytical skills, and the ability to work well with people. Employers are looking for individuals who have the ability to analyze and evaluate complex business problems and the interpersonal skills and maturity to make decisions in a client- and customer-service environment.”

Why were business subjects or additional accounting courses not required?  I think a close reading of the above quote puts everything into perspective.  At the time the profession seemed to believe there were several deficiencies in the training of accountants, including communication skills. Therefore, even more liberal arts courses would help an accountant become a more critical thinker and better business person. I also believe the profession wished to have well-rounded professionals who could function not only as a CPA but as an informed member of society.  As I tell my students, accounting firms can hire computers to do accurate accounting. However, the firms are looking to hire interesting people who can relate well with the clients, stakeholders, and other employees of the firm. I believe this has happened but I also think it is time to rethink the 150 hour requirement.  

To be sure I don’t want the 150 hour requirement to be abolished.  That would be a step backwards in my opinion. State Boards of Accountancy are not inclined to do that either since there is reciprocity and portability among the various states. CPAs licensed in one State can temporarily work or be licensed in another State since each has similar educational  requirements.  Removing the 150 credit hour requirement would need to be done by all jurisdictions or there would be mass confusion as CPAs from one state tried to work in another.  No one wishes to see that.  

The requirement does have several serious implications though. First, the extra cost has increased the barrier  to entry.  While the AICPA disputes this, the actual results seem to tell a different story.  Minority groups are underrepresented at the professional level in accounting firms (2) and some believe the 150 hour requirement is a cause.The total number of accounting graduates seems to be dropping (4) and firms are afraid they will not be able to secure sufficient talent in the near future.  The latter concerns were expressed at a meeting of the State Board of Accountancy of NJ during its May 2022 meeting (4)  During the same meeting the State Board took direct aim at the fact the additional credits did not have to be in a business related subject,  saying this requirement “…makes little sense.”  It should be noted that even the AICPA believed most students would pick up the additional education through graduate programs such as a Master’s of Accountancy degree.   The NJ State Board also  noted there seems to be very little correlation between the extra year of college education and success as a CPA.

As a result of these concerns, the NJ Board approved a “Work for Credit” program where students can earn 30 credits by working in a co-op program with an accounting firm. Students will work for nearly a year with a sponsoring accounting firm to achieve the extra 30 credits.  Since the students will be paid, there will be significantly less financial burden on them.  Hopefully, this will also increase minority participation within the profession. I am very much inclined to agree with this approach to solving some of the problems in the accounting profession.  Afterall, who can disagree with better trained CPAs and greater opportunity and  participation in the profession? 

  1. https://us.aicpa.org/becomeacpa/licensure/requirements#states
  2. https://www.accounting.com/resources/minority-accountants/
  3. https://www.journalofaccountancy.com/newsletters/academic-update/how-faculty-can-address-declining-accounting-enrollments.html
  4. https://www.njconsumeraffairs.gov/acc/Minutes/accountancy-minutes-051922.pdf