
“Enlightenment is ego’s ultimate disappointment.”
― Chögyam Trungpa, Tibetan Buddhist Monk
Leadership and Ego
Strong, effective leaders must certainly maintain a balanced, healthy ego. Their ego must be kept in check by humility and the ability to listen and adapt. The higher a leader rises in the ranks, the more they are at risk of suffering from an out of control, inflated ego. The bigger their ego grows, the more they are at risk of ending up in an insulated bubble, losing touch with their colleagues and their culture. An unchecked ego can warp their perspective and twist their values.
Jennifer Woo, CEO of The Lane Crawford Joyce Group, Asia’s largest luxury retailer, remarked: “Managing our ego’s craving for fortune, fame, and influence is the prime responsibility of any leader. When we’re caught in the grip of the ego’s craving for more power, we lose control. Ego makes us susceptible to manipulation; it narrows our field of vision; and it corrupts our behavior, often causing us to act against our values.”
Bonnie Harken
Bonnie Harken started with iaedp in 2002. She remains its managing director today and is, ipso facto, its sole power. Certainly, twenty-one (21) years far exceeds the reign of any other leader of all other eating disorder organizations.
And yet, troubling issues abound with iaedp. One can’t help but question whether those issues arose or were worsened because of ego.
Iaedp reports that as its Managing Director, Ms. Harken works 40.00 hours per week … for free. She does not take a salary. However, her dissolved management company, Crossroads Programs, Inc. purportedly has a consulting agreement with iaedp and is paid a base income of $156,000.00.
Non-existent corporation and conflicts of interest
The first of many problems confronting iaedp and Ms. Harken is that her corporation, Crossroads Programs, Inc. was dissolved on June 6, 2016. However, on iaedp’s Form 990 tax returns going back as far as 2017, Ms. Harken directed that her corporation be listed as “inc.” which means, a corporation in good standing. A dissolved corporation does not have the legal right to enter into any contracts or to be paid any amounts of money. This was pointed out to Ms. Harken.
Her response through her attorneys? Oh, you’re right! It was dissolved in 2016 but it is actually a “sole proprietorship.” The IRS defines “sole proprietorship” simply: “A sole proprietor is someone who owns an unincorporated business by himself or herself.”
Ms. Harken’s sole proprietorship is a for profit entity. Iaedp’s Form 990 reveals that money from iaedp is funding Ms. Harken’s “sole proprietorship” and its “division,” Crossroad Programs for Women. According to Ms. Harken’s social media pages, these dissolved and non-existent entities are providing lectures, group discussions and therapeutic exercises on mental health and eating disorders. Those same services are also provided by iaedp members. So, aren’t we justified in asking whether a gross and obvious conflict of interest exists?
Iaedp has other grave issues. iaedp was incorporated in California in 1996. In Illinois, an out of state (a/k/a foreign) organization must contact the Office of the Illinois Attorney General’s Charitable Trust Bureau to register as required under the Illinois Charitable Organization Laws prior to any solicitation or holding of charitable assets. In addition, any charities holding or soliciting funds in Illinois must also register with the Illinois Attorney General’s Office prior to any solicitation of funds. This was not done. When this too was pointed out to Ms. Harken, her attorneys responded and in essence said, thank you for pointing this out to us. It is being taken care of.
Of course, in all likelihood, these financial and policy concerns would have been discovered by an independent audited financial statement. The problem is, iaedp has not had an independent audited financial statement prepared going back at least as far as ten (10) years. One can speculate as to the reasons.
Private Inurement Doctrine
Other serious issues exist. There is a doctrine in the IRS Code generally referred to as the Private Inurement Doctrine. Simply put, the “Private Inurement Doctrine” applies to persons, commonly referred to as “insiders,” such as founders, directors, or officers who can influence or control use of an organization’s assets for personal gain.
Examples of private inurement violations include: “Use of organizational assets to support, fund, or otherwise invest in an insider’s business.”
Which brings us back to questions regarding Ms. Harken and her “sole proprietorship, Crossroads. If iaedp is funding Ms. Harken’s “sole proprietorship,” [which is clearly an “insider’s business] which appears to openly compete with iaedp members and chapters, that could present tax issues not just for Ms. Harken and iaedp, but also iaedp’s Board of Directors.
The IRS can hold a board accountable and potentially liable for actions the organization takes that are not within IRS boundaries. This includes fiduciary liability regarding financial matters. These penalties and sanctions can be draconian. They include Intermediate Sanctions penalties assessed on individual board members. Initially, the IRS could fine each board member up to 25 percent of the benefit received. If the nonprofit doesn’t act quickly to comply with the IRS, it could increase to 200 percent, per board member.
To attempt a quiet resolution on these issues, I reached out to Ms. Harken and brought these issues to her attention. In fact, in that correspondence, I stated: “I welcome an open discussion with you in which we attempt to correct any misconceptions and right all wrongs. I also believe this can best be accomplished by bringing in a few third parties to work together collaboratively.”
Lawyer Up and Straw Men Down
Ms. Harken’s response was to immediately “lawyer up.” [which may have been the smartest thing Ms. Harken has done in quite some time.] When I asked for basic information from the attorneys, they refused to provide that information.
Recently, I received an email from the lawyers thanking me for bringing these matters to their attention, that they are taking care of some of those issues. In essence, there was nothing to see here … move along, move along. They also insisted that I cease and desist from “disparaging iaedp.”
And then, Ms. Harken and iaedp’s attorneys attempted to deflect attention away from iaedp’s many issues and brought up their belief that the Morgan Foundation is operating illegally. This is generally known as a “straw man fallacy or argument.”
A straw man fallacy is the fallacious practice of attempting to refute an argument different from the one actually under discussion, while not recognizing or acknowledging the distinction.
Nonetheless, for transparency, I will address this straw man. In 2017, I started the Morgan Foundation to honor my daughter, Morgan, who died from anorexia. But, in early 2020, I intentionally let the Foundation lapse.
Through my investigation and research, I found that there were people in the eating disorder community who instead of helping families, were actually hurting families suffering from this disease. I knew that to expose their conduct and get them out, I had to be aggressive and utilize social media and the court system. I did not want my daughter’s name sullied with that which had to be done. So, the Morgan Foundation does not, and has not solicited donations, accepted donations or co-sponsored any events since it was closed. I leave the Morgan Foundation logo on my law firm stationary because: (1). It is a pretty cool logo, and (2). It is another daily reminder of my beloved daughter.
And therein lies a sin that cannot be forgiven.
To me, there are very few things/people beneath contempt. But, in attempting to take issue with, and besmirch the Morgan Foundation, Ms. Harken besmirched the memory of my daughter. A child who died after fighting eating disorders for seven (7) years with much more courage than people like Ms. Harken could possibly envision. In doing so, Ms. Harken crossed the Rubicon of decency. For that, there will be no forgiveness. For that, there will be no clemency nor mercy.
I understand that when these matters were brought to Ms. Harken’s attention, her response was of indignation, that she would fight until the end. Her actions certainly substantiate that belief. And I can’t help wondering what else is being hidden. After all, isn’t iaedp supposed to be operating to help families with eating disorders? Shouldn’t it be open and transparent regarding all issues to any and all interested parties?
I can’t help but wonder how many times Ms. Harken may have asked not just herself, but others, “At this point, what is in the best interests of iaedp?” Even more importantly, how many times has Ms. Harken asked, “What is in the best interests of the families who are so suffering?”
The unfortunate reality is that out-of-control egos prevent that type of introspection or questioning. Out of control egos prevent leaders of organizations from self-regulating and self-reflecting.
That type of hubris results in leaders not understanding the position of peril in which they placed their organization when that organization’s only true asset is at risk and could be subject to class-based litigation.
In iaedp’s case, that would be the certification program.
And in the next article, we will discuss the manner in which the eating disorder certification program is at great peril and could be subjected to judicial scrutiny.



















