“This is a ‘must read’ for nonprofit leadership, both governance and management….The courts have put new obligations on nonprofits that enter into the Zone of Insolvency, hence it is in everyone’s best interests to avoid the Zone (and Ron points out ways to do that) and be very alert to roles and responsibilities in the Zone. Even large organizations are subject to unexpected financial setbacks, and shelve information like Ron is providing should never be far away.” -- Richard F. Schubert, Former CEO and President of American Red Cross, Founding CEO and President of Points of Light Foundation, and Founding Board Member and Vice Chairman of Leader to Leader Institute

Zone Of Insolvency: How Nonprofits Avoid Hidden Liabilities and Build Financial Strength

(Wiley, April 2008), reveals that as many as one-third of the nation’s 1.4 million nonprofits are operating at a level of financial distress, -which will force many to file for dissolution. For the past three decades author Ron Mattocks has helped guide a wide variety of nonprofits from all sectors with annual revenues ranging from $2 million to $2 billion. His new book shows America’s 20 million nonprofit board members and 12 million non-profit personnel how to recognize if their organization is running in the Zone of Insolvency and how to get out of the zone and reduce corporate and personal liabilities.

The Zone of Insolvency educates board members who have never even heard of the Zone of Insolvency. The book includes:

• Sample action plans for any organization’s predicament, whether solvent, in the Zone of Insolvency, or insolvent.
• 10 real-life case studies of nonprofits that have had to confront the Zone of Insolvency and how they each approached the issues, assessed danger spots, acknowledged shortcomings, and committed to an action step.
• Tips on fundraising hazards, including donor-restricted gifts, charitable gift annuities issued by nonprofits, commissions involving fundraisers, and donors turning into creditors at bankruptcy.
• Sample board policies covering the key areas that all boards should have a clearly written policy on, such as conflict of interest, review of grants and proposals, borrowing of funds, and purchase authorizations.
• 60 charts plotting performances of financially strong and weak organizations