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The September 2001 terrorist attacks in the United States precipitated US military actions in Afghanistan and Iraq, increasing demand for certain military assets. Domestically, the attacks crippled an already struggling airline industry, hurting domestic aircraft orders at Boeing Company, the only US producer of large-frame commercial aircraft. Boeing's supporters on Capitol Hill proposed procuring converted Boeing 767 airframes to replace the Air Force's aging fleet of aerial refueling tanker aircraft. Yet, the Air Force could not fit a purchase of the tanker aircraft into its budget without sacrificing other key programs. Leasing the aircraft through a special purpose entity was suggested as a solution. Critics questioned the cost, need, and structure of the tanker deal and pushed Secretary Donald Rumsfeld to reject the agreement. HKS Case Number 1845.0

In May 2003, Defense Secretary Donald Rumsfeld approved an agreement allowing the Air Force to lease 100 converted Boeing 767 aircraft as aerial refueling tankers. The deal's critics, most prominently Senator John McCain, argued that no the aircraft were not needed, that the lease was a thinly disguised purchase designed to circumvent the budget process, and that the agreement was a government handout to the Boeing Company. As the deal neared Congressional approval, evidence surfaced of illegal conduct involving an Air Force acquisition executive and Boeing, casting uncertainty over the agreement's prospects. This case discusses the financial and accounting issues of leasing rather than purchasing the aircraft, the translation of commercial business practices to government, and the process and purpose of government budgeting. This case is best used in concert with "The Boeing Tanker Lease Deal (A)." HKS Case Number 1846.0

The New York Audubon Society (NYCAS), founded in 1979, became the National Audubon's largest chapter, with a city-wide membership of more than 10,000 members. Prior to 1993, NYCAS' services were provided entirely by volunteers working in a committee structure, with the board composed primarily of committee chairmen. The nature of the organization transformed as it grew in size and complexity from focusing on bird conservation to broader environmental advocacy. In 1993, the board undertook a dramatic change and hired an executive director, primarily for fundraising purposes. Discusses fund accounting and nonprofit accounting practices, as well as the NYCAS' experiences dealing with organizational growth, investment management, grant acquisition and use, fundraising, nonprofit status, and financial disclosure.