Bad Days at New Day Products

Abstract

This instructional case describes an embezzlement committed by the former executive director of a Southeast Idaho nonprofit organization, New Day Products. The case, based on an organization that helps people with disabilities, provides a rich context for students to learn about the important roles and responsibilities of nonprofit organizations’ boards of directors. Highlighting the challenges faced by nonprofit boards of directors, the case asks students to consider how New Day Products’ board of directors’ governance decisions, including its choice of financial statement reviews rather than audits, increased the executive director’s opportunities to commit fraud.