Transparency is not always easy but is always good in the short and long run.
Kate Barr, the Executive Director of the Nonprofit Assitance Fund, discussed the recent national ACORN scandal. Rather than just linking to the New York Times article about it, I suggest giving her blog a read. Compare ACORN's reaction to eight years of scandal versus a local response to a much shorter instant of fraud. Michael Wirth Davis of Goodwill/Easter Seals discussed his organization's decision to work with authorities and to be as transparent as possible at last year's annual forum.