Notably, the occurrence of such situations is usually prevented through various ways. One of the ways in which this gross negligence could have been prevented is through minimizing debts. We've seen that a lot of cash was borrowed from other firms including banks and they were never paid back their cash. The creditors decided that in order for them to get their money back they had to take action, which was to file case against the agency. At this point Brooklyn CareWorks had no other source of obtaining funds, which forced it to close down. Secondly, the lawsuit could have been prevented through holding discussions between Brooklyn CareWorks board of directors and the creditors committee on the financial status of the agency. Through the discussions, the two parties could agree on how to control their finances and how the debtors can be sorted out. The board of directors could have organized for workshops, seminars through which they could...

Moreover, the board of directors could have also learnt how to minimize or avoid debts, which could have helped to prevent the closure of the organization.
In order to prevent the recurrence of such scenarios, the organization should adopt several strategies. Brooklyn CareWorks could prevent the recurrence of such scenario in the future through ensuring that the organization keeps up with payroll taxes, which is one of the easiest and most serious mistakes that nonprofits can make. The other steps include identifying fiduciaries with the ability to perform unrestricted powers by respecting management of the plan or asset and those with discretionary authority or responsibility in administration of the plan. The board of directors should be in a position to understand the duties of a trustee by identifying any impending conflicts of interests and how to avoid them.