A recently passed law in Oregon is targeting nonprofits that spend too little on their mission, subjecting them to financial punishments.
According to a report in The Star Tribune, House Bill 2060, which was signed by Gov. John Kitzhaber last month, will eliminate state and local tax subsidies for organizations that spend less than 30 percent on program services over a period of three years. The bill not affect federal tax-exemption on contributions.
The law was previously reported in an earlier article in The NonProfit Times.
Jim White, executive director of the Nonprofit Association of Oregon, told The Tribune that the law is the first of its kind in any state. "We're the first in the country, and we should be proud of that," he said.
The state's Office of the Attorney General has already identified 20 charities that all spend less than 30 percent of their budget on programs and services. All of the organizations on the list are based in states other than Oregon include a Troy, Mich.-based "Law Enforcement Education Program" that spends just 2.7 percent of its $2.2 million in annual expenditures on programs and services. The names of these charities were not revealed in the AG Office's list.
Oregon and other states had similar laws in past years that stopped charities from soliciting donations if they were spending too much on themselves and their fundraisers. Those rules were overturned in 1980 when the Supreme Court ruled they were a violation of a nonprofit's First Amendment Rights.
A spokesman for the Department of Justice indicated that the law is not in similar danger, as it does not restrict a charities right to fundraise.
You can read the full story in The Star Tribune.
Showing posts with label charities. Show all posts
Showing posts with label charities. Show all posts
Monday, July 1, 2013
Monday, May 6, 2013
Two Men Charged In Alleged 9/11 Charity Scam
Two men have been indicted for allegedly operating a bogus 9/11 charity, New Jersey Attorney General Jeffrey S. Chiesa announced today.
Mark Niemczyk and Thomas Scalgione were indicted Friday on third-degree charges of conspiracy and theft by deception. The two men operated a pick-up truck from which they operated a charity that was supposed to raise money for the victims of the 9/11 attacks or related charities. The men allegedly sold t-shirts and collected donation at 9/11 events. The funds they raised -- in excess of $50,000 -- never made it to victims' families or 9/11 charities as promised, according to Chiesa.
“It’s a sad reality that in the wake of a devastating tragedy, when so many want to help, there are always parasites who view the tragedy and the generosity of others as nothing more than the opportunity and the means to turn a crooked profit for themselves,” said Chiesa.
The state alleges that Niemczyk and Scalgione, who registered their operation with the state, took all of their proceeds and deposited it into their personal bank accounts to pay for unrelated expenses. As a result of their alleged fraud, the two men were able to purchase the t-shirts they sold at a discounted rate by telling vendors that the proceeds from their sales would benefit victims' families. One vendor gave discounts totaling $3,312, and another gave discounts totaling $1,378.
Elie Honig, director of the New Jersey Division of Criminal Justice, also alleges that the men told other lies in the name of donations. Niemczyk allegedly claimed that he was a Navy SEAL who did three tours of duty in Vietnam, and that he and Scalgione were father-and-son firefighters who were working at a firehouse near the World Trade Center on 9/11.
“Their conduct was outrageous, and we urge any victims who donated money or bought T-shirts from these con artists to contact us,” said Honig.
The charges against Niemczyk and Scaligione stem from an investigation by the Division of Criminal Justice Financial & Computer Crimes Bureau. The criminal investigation began with a referral from the Division of Consumer Affairs, which in November secured a final consent judgment in a civil action, under which the men must pay a total of more than $200,000, representing disgorgement of donations and payment of civil penalties, attorneys’ fees and investigative costs. The judgment bars the men from ever working for any charitable organization in New Jersey should they be convicted.
You can read the full indictment on the state of New Jersey's website.
The state alleges that Niemczyk and Scalgione, who registered their operation with the state, took all of their proceeds and deposited it into their personal bank accounts to pay for unrelated expenses. As a result of their alleged fraud, the two men were able to purchase the t-shirts they sold at a discounted rate by telling vendors that the proceeds from their sales would benefit victims' families. One vendor gave discounts totaling $3,312, and another gave discounts totaling $1,378.
Elie Honig, director of the New Jersey Division of Criminal Justice, also alleges that the men told other lies in the name of donations. Niemczyk allegedly claimed that he was a Navy SEAL who did three tours of duty in Vietnam, and that he and Scalgione were father-and-son firefighters who were working at a firehouse near the World Trade Center on 9/11.
“Their conduct was outrageous, and we urge any victims who donated money or bought T-shirts from these con artists to contact us,” said Honig.
The charges against Niemczyk and Scaligione stem from an investigation by the Division of Criminal Justice Financial & Computer Crimes Bureau. The criminal investigation began with a referral from the Division of Consumer Affairs, which in November secured a final consent judgment in a civil action, under which the men must pay a total of more than $200,000, representing disgorgement of donations and payment of civil penalties, attorneys’ fees and investigative costs. The judgment bars the men from ever working for any charitable organization in New Jersey should they be convicted.
You can read the full indictment on the state of New Jersey's website.
Wednesday, April 17, 2013
Scams Abound After Boston Marathon Bombings
In the aftermath of the deadly bombings Monday at the Boston Marathon, a number of web sites claiming to offer funds for victims appear to be scams.
According to the Internet news site TheDomains, more than 20 of the 125 domains that were registered after the bombings appear to be illegitimate. Michael Berkens, editor of TheDomains, wrote in his piece that many of these sites, such as Bostonmarathonrelief.com, have been registered by individuals rather than legitimate charities.
“While we don’t know every registrants' intention, we do know historically that many of the domain names registered immediately after were done to get traffic and make money parking domains or worse,” wrote Berkens.
Bostonmarathonrelief.com claims to be raising $25,000 benefiting the American Red Cross (ARC). As of this writing, $20 has been donated. A spokeswoman for ARC told The NonProfit Times that the site is in no way affiliated with the organization. The site is registered to a man in Fort Worth, Tex.
Scams also appeared on social networking platforms. Shortly after the bombings, a Twitter handle masquerading as an official account of the Boston Marathon sent out a tweet claiming it would donate $1 to victims for every retweet. The account, @_BostonMarathon, was suspended by Twitter, according to The Huffington Post.
“Tragedies inspire people to give,” H. Art Taylor, president and CEO of Better Business Bureaus Wise Giving Alliance, said in a press release, “but, tragedies –- whether natural disasters or manmade catastrophes –- also inspire scammers to take advantage of that generosity. Social media, in particular, makes it very easy to reach a lot of people quickly, when emotions are running high and people feel the need to take action, any action, to help.”
Charity scams after national tragedies are not exactly a new phenomenon. After the Newtown, Conn., shootings resulted in the death of six-year old Noah Ponzer, an e-mail was sent to individuals asking for donations that would be sent to Ponzer's family. Upon learning of the bogus solicitations, Ponzer's uncle alerted authorities who put an end to the scam.
According to the Internet news site TheDomains, more than 20 of the 125 domains that were registered after the bombings appear to be illegitimate. Michael Berkens, editor of TheDomains, wrote in his piece that many of these sites, such as Bostonmarathonrelief.com, have been registered by individuals rather than legitimate charities.
“While we don’t know every registrants' intention, we do know historically that many of the domain names registered immediately after were done to get traffic and make money parking domains or worse,” wrote Berkens.
Bostonmarathonrelief.com claims to be raising $25,000 benefiting the American Red Cross (ARC). As of this writing, $20 has been donated. A spokeswoman for ARC told The NonProfit Times that the site is in no way affiliated with the organization. The site is registered to a man in Fort Worth, Tex.
Scams also appeared on social networking platforms. Shortly after the bombings, a Twitter handle masquerading as an official account of the Boston Marathon sent out a tweet claiming it would donate $1 to victims for every retweet. The account, @_BostonMarathon, was suspended by Twitter, according to The Huffington Post.
“Tragedies inspire people to give,” H. Art Taylor, president and CEO of Better Business Bureaus Wise Giving Alliance, said in a press release, “but, tragedies –- whether natural disasters or manmade catastrophes –- also inspire scammers to take advantage of that generosity. Social media, in particular, makes it very easy to reach a lot of people quickly, when emotions are running high and people feel the need to take action, any action, to help.”
Charity scams after national tragedies are not exactly a new phenomenon. After the Newtown, Conn., shootings resulted in the death of six-year old Noah Ponzer, an e-mail was sent to individuals asking for donations that would be sent to Ponzer's family. Upon learning of the bogus solicitations, Ponzer's uncle alerted authorities who put an end to the scam.
Wednesday, April 3, 2013
Khloe Kardashian: Husband's Charity Not A Scam
Reality star Khloe Kardashian has taken to the web to deny allegations that her husband Lamar Odom's charity is a scam.
A report on ESPN's "Outside the Lines" program on March 31 alleged that many charities of top athletes don't fulfill their missions as stated. They cited Odom's charity Cathy's Kids as one of the examples, alleging that the organization hasn't given any money to cancer research even though it has raised nearly $2.2 million.
The charity was founded by Odom in 2004 and was named after the NBA star's mother who died from cancer. ESPN noted that the charity was supposed to raise funds for cancer research, but the report alleged that nearly 60 percent of donations has gone to finance two elite youth basketball travel teams and that there is no evidence that any of the remaining $900,000 went to cancer research.
The Huffington Post reported that on Tuesday, Kardashian took to her blog on the website Celebuzz to defend her husband from the allegations. She insisted that the Los Angeles Clippers star has personally donated "millions" of dollars to cancer research, and that none of the money from the charity went to help him or any member of his family.
She also sought to clarify the ultimate mission of Cathy's Kids, saying that the organization was founded with multiple purposes in mind including cancer research and helping underprivileged youth. "A decision was ultimately made that the charity should focus on one of those purposes — to help enrich the lives of underprivileged inner-city youth," wrote Kardashian. "It accomplished that goal. Cathy’s Kids helped fund multiple AAU basketball teams providing underprivileged youth with opportunities enriching their lives, providing financial support for coaching and travel to tournaments, helping inner-city youth on a path toward success and leading many participants to go on to college."
Aside from Odom's charity, the ESPN report also mentions alleged questionable practices by such well-known athletes as New York Yankees third baseman Alex Rodriguez, whose foundation stopped filing tax returns five years ago, and NFL wide receiver Randy Moss, whose two charities allegedly spent no money on philanthropy in 2010.
A report on ESPN's "Outside the Lines" program on March 31 alleged that many charities of top athletes don't fulfill their missions as stated. They cited Odom's charity Cathy's Kids as one of the examples, alleging that the organization hasn't given any money to cancer research even though it has raised nearly $2.2 million.
The charity was founded by Odom in 2004 and was named after the NBA star's mother who died from cancer. ESPN noted that the charity was supposed to raise funds for cancer research, but the report alleged that nearly 60 percent of donations has gone to finance two elite youth basketball travel teams and that there is no evidence that any of the remaining $900,000 went to cancer research.
The Huffington Post reported that on Tuesday, Kardashian took to her blog on the website Celebuzz to defend her husband from the allegations. She insisted that the Los Angeles Clippers star has personally donated "millions" of dollars to cancer research, and that none of the money from the charity went to help him or any member of his family.
She also sought to clarify the ultimate mission of Cathy's Kids, saying that the organization was founded with multiple purposes in mind including cancer research and helping underprivileged youth. "A decision was ultimately made that the charity should focus on one of those purposes — to help enrich the lives of underprivileged inner-city youth," wrote Kardashian. "It accomplished that goal. Cathy’s Kids helped fund multiple AAU basketball teams providing underprivileged youth with opportunities enriching their lives, providing financial support for coaching and travel to tournaments, helping inner-city youth on a path toward success and leading many participants to go on to college."
Aside from Odom's charity, the ESPN report also mentions alleged questionable practices by such well-known athletes as New York Yankees third baseman Alex Rodriguez, whose foundation stopped filing tax returns five years ago, and NFL wide receiver Randy Moss, whose two charities allegedly spent no money on philanthropy in 2010.
Friday, December 21, 2012
After Newtown, Charity Scam Hits Victim's Family
After a tragedy the magnitude of last week's school shootings in Newtown, Conn., it is common to see charities emerge in an effort to help the victims. Yet another trend has emerged after these incidents that is not quite as uplifting: Charity scams.
The Huffington Post reported Wednesday that an individual was soliciting donations on behalf of the family of 6-year-old Noah Ponzer, who was killed during the shooting. The e-mail claimed they would send cards, packages, and money to Ponzer's parents, family, and siblings. A website was even set up, which used Noah's name as the address, and included links to petitions on gun control.
After finding out about the bogus solicitation Alexis Haller, Noah's uncle, alerted authorities to put an end to it. He was quoted in The Huffington Post article as saying "These scammers are stealing from the families of the victims of this horrible tragedy."
The website in question was turned over to the Ponzer family and its creator, who was identified as Jason Martin, reportedly told Victoria Haller, Noah's Aunt, who had replied to the original e-mail, that it was meant to honor Noah and promote gun control.
This isn't the first time, and it probably won't be the last, that bogus charities have emerged following a tragedy or some other disaster. For instance, after the the shootings at Columbine High School in Littleton, Colo., scammers contacted victims' families asking for credit card donations.
You can read the full story in The Huffington Post.
The Huffington Post reported Wednesday that an individual was soliciting donations on behalf of the family of 6-year-old Noah Ponzer, who was killed during the shooting. The e-mail claimed they would send cards, packages, and money to Ponzer's parents, family, and siblings. A website was even set up, which used Noah's name as the address, and included links to petitions on gun control.
After finding out about the bogus solicitation Alexis Haller, Noah's uncle, alerted authorities to put an end to it. He was quoted in The Huffington Post article as saying "These scammers are stealing from the families of the victims of this horrible tragedy."
The website in question was turned over to the Ponzer family and its creator, who was identified as Jason Martin, reportedly told Victoria Haller, Noah's Aunt, who had replied to the original e-mail, that it was meant to honor Noah and promote gun control.
This isn't the first time, and it probably won't be the last, that bogus charities have emerged following a tragedy or some other disaster. For instance, after the the shootings at Columbine High School in Littleton, Colo., scammers contacted victims' families asking for credit card donations.
You can read the full story in The Huffington Post.
Wednesday, October 17, 2012
Wyclef Jean Defends Charity Amid Financial Scandal
According to a report in The New York Times, Yele, which Jean founded in 2005 and was based in New York City, closed its doors last summer after a continuing investigation by the NY Attorney General's Office found the charity misappropriated funds meant for victims of the Haiti earthquake. Yet despite these woes, Jean still stands by his efforts.
In his new memoir, "Purpose: An Immigrant's Story," Jean denied that he used his charity for personal gain. He wrote that he had no need for more personal wealth, citing his watch collection worth $500,000 as an example of his well-being. He also wrote that, someday, people will understand that "Yele is Haiti's greatest ally and asset."
At the end of August, Derek Q. Johnson, Yele's former chief executive, announced his resignation in an e-mail to supporters.
"As the foundation’s sole remaining employee, my decision implies the closure of the organization as a whole," wrote Mr. Johnson, who replaced Jean as the head of the organization after he announced a failed candidacy for Haiti's president. Johnson's resignation came after Jean refused to accept a settlement proposed by NY Attorney General Eric T. Schneiderman that would have required Jean and Yele's two other co-founders to pay $600,000 in restitution to cover the "waste" of the organization's assets.
A forensic audit of the organization from 2005 to 2009 found that, of the $3 million in expenses during that time period, there were $256,580 in illegitimate benefits to Jean and other staff and board members, including $24,000 for a chauffeur service, and $30,763 for a private jet to take actress Lindsay Lohan to a benefit in Chicago. That fundraiser netted only $66,000. In addition, The New York Post reported last November that, despite receiving $16 million in donations for the Haiti earthquake, Yele spent only $5.1 million on disaster relief.
Yele was hardly a mammoth entity before the Haiti earthquake, having only $37,000 in assets. After the quake struck, however, Jean was able to raise $1 million in 24 hours by urging his Twitter followers to donate via text. He also garnered attention for his organization when he co-hosted MTV's "Hope For Haiti" telethon with actor George Clooney.
You can read the full story in The New York Times.
Tuesday, July 10, 2012
The Global Fund Tries New Method Of Solicitation
The Global Fund to Fight AIDS, Tuberculosis, and Malaria (GFATM) is taking a new approach to solicitations by pitching its case directly to financiers.
After having difficulty in recent years raising money, The New York Times reported that the charity's new general manager, Gabriel Jaramillo, made a spirited pitch to finance ministers from participating nations. In a meeting in Tunisia, Jaramillo urged them to invest in GFATM now because "the out-years will be much cheaper as your number of cases goes down."
Jaramillo cited Nambia as an example of cost-efficiency. The African desert country spends $120 million a year on AIDS treatment, with half of that money coming from the Global Fund. These efforts helped Nambia free 9,200 hospital beds per year and saved the lives of 1,000 health workers and 550 teachers. In addition, the AIDS deaths in the country dropped from 2,700 to 56 over five years.
The Global Fund, founded in 2002, is almost entirely funded by the largest development nations and its taxpayers. Its largest private contributor is the Gates Foundation, which recently committed $750 million to GFATM. The global financial crisis had a huge impact on the organization, and the drop in financing has left it short of its goals. In May 2011, GFATM stated it was $1.3 billion short of its needs for 2011 through 2013. As a result, the organization has asked many of the countries it helps to make less ambitious plans and to cover more of its own costs.
You can read the full story in The New York Times.
After having difficulty in recent years raising money, The New York Times reported that the charity's new general manager, Gabriel Jaramillo, made a spirited pitch to finance ministers from participating nations. In a meeting in Tunisia, Jaramillo urged them to invest in GFATM now because "the out-years will be much cheaper as your number of cases goes down."
Jaramillo cited Nambia as an example of cost-efficiency. The African desert country spends $120 million a year on AIDS treatment, with half of that money coming from the Global Fund. These efforts helped Nambia free 9,200 hospital beds per year and saved the lives of 1,000 health workers and 550 teachers. In addition, the AIDS deaths in the country dropped from 2,700 to 56 over five years.
The Global Fund, founded in 2002, is almost entirely funded by the largest development nations and its taxpayers. Its largest private contributor is the Gates Foundation, which recently committed $750 million to GFATM. The global financial crisis had a huge impact on the organization, and the drop in financing has left it short of its goals. In May 2011, GFATM stated it was $1.3 billion short of its needs for 2011 through 2013. As a result, the organization has asked many of the countries it helps to make less ambitious plans and to cover more of its own costs.
You can read the full story in The New York Times.
Wednesday, May 30, 2012
Hip-Hop Star Mary J. Blige Vows To Get Her Charity Back On Track
Amid reports of turmoil at her charity to empower women, hip-hop star Mary J. Blige said she would get the organization back on the right track.
The New York Post reported today that Blige told the entertainment show E! News that she and her advisers are well on their way to fixing some of the problems at her charity, Foundation for the Advancement of Women Now (FFAWN).
"As founder and CEO of FFAWN, I am ultimately responsible for anything that goes wrong. The problem is that I didn't have the right people in the right places doing the right things. This should have never been allowed to happen, but it did and now we are fixing it."
Blige went on to tell E! News that she had the "wrong" people in place at FFAWN, and that she has no plans to close the embattled nonprofit.
The Post initially ran a report on May 27 detailing a litany of abuses at FFAWN. The charity not only has no office or phone number, but hundreds of thousands of dollars are unaccounted for. In addition, it has yet to file its federal tax returns for 2010, as well as its annual state-charity registration.
FFAWN is also facing two civil lawsuits, one that claims the organization failed to pay musicians at a fundraising event in 2011 and another the charges the charity defaulted on a $25,000 loan.
You can read the full story in The New York Post.
The New York Post reported today that Blige told the entertainment show E! News that she and her advisers are well on their way to fixing some of the problems at her charity, Foundation for the Advancement of Women Now (FFAWN).
"As founder and CEO of FFAWN, I am ultimately responsible for anything that goes wrong. The problem is that I didn't have the right people in the right places doing the right things. This should have never been allowed to happen, but it did and now we are fixing it."
Blige went on to tell E! News that she had the "wrong" people in place at FFAWN, and that she has no plans to close the embattled nonprofit.
The Post initially ran a report on May 27 detailing a litany of abuses at FFAWN. The charity not only has no office or phone number, but hundreds of thousands of dollars are unaccounted for. In addition, it has yet to file its federal tax returns for 2010, as well as its annual state-charity registration.
FFAWN is also facing two civil lawsuits, one that claims the organization failed to pay musicians at a fundraising event in 2011 and another the charges the charity defaulted on a $25,000 loan.
You can read the full story in The New York Post.
Thursday, May 24, 2012
Senate To Investigate Veterans Charity
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| Sen. Max Baucus (D-MT) |
CNN reported that committee Chairman Sen. Max Baucus (D-MT) announced the investigation of Washington, D.C.-based Disabled Veterans National Foundation (DVNF) on Wednesday. He said that the investigation will determine whether the organization will be able to keep its tax-exempt status.
"The tax exemption for charities exists to promote worthwhile causes like assistance to veterans, not to provide tax loopholes to abuse," Baucus said in a Wednesday news release. "DVNF has a responsibility to show it's genuinely helping veterans and playing by the rules."
A two-year investigation by CNN's "Keeping Them Honest" series found that very little of the $56 million raised by DVNF over the last three years went to direct aid for disabled veterans. Instead, the nonprofit has paid almost $61 million to Quadriga Art and its subsidiaries, according to IRS 990 forms. Quadriga Art is one of the nation's largest direct mail providers to charities and nonprofits.
The investigation also found that DVNF supplied unnecessary contributions to veterans aid groups, such as candy, hand sanitizer, and dress shoes -- all surplus items that the charity gets for free.
DVNF President Precilla Wilkewitz said in a statement that her organization will "will happily answer the questions posed by the United States Senate Finance Committee and provide it with information that others have sadly, chosen to ignore."
You can read more about this story on CNN.
Thursday, January 5, 2012
The Second Mile Weighs Options
It's been a little while since we heard any news from The Second Mile, the charity for troubled children founded by former Penn State football coach Jerry Sandusky. The last time we had some major news to report on the organization, we learned that they had started laying off employees. As we enter the new year, we are learning more about the organization's plans.
The Patriot News reported yesterday that the organization was considering outsourcing some of its services to three charities as 2011 came to a close. But about 10 days ago, two of those charities backed out. The signal was clear: They wanted no part of The Second Mile. Now the troubled charity is deciding how to move forward without its first and second choices.
One of the organizations that pulled out of negotiations is a Volunteers of America (VoA) chapter based in Harrisburg, Pa. Leaders at he organization made up their mind after they decided the distraction of the Jerry Sandusky trial were too big of an issue. The second organization, Centre County Youth Service Bureau, made no comment to The Patriot News on its decision. Arrow Child & Family Ministries is still considering assuming control of some programs.
Second Mile CEO David Woodle said Tuesday that the charity has three remaining options: Continue to operate, run under a different name, or dissolve. With the negative attention the charity has received thanks to the Sandusky scandal, it seems hard to believe it can survive, at least under its current name. A major rebranding effort would need to be happen for the charity to continue operating.
Read the full story in The Patriot News.
The Patriot News reported yesterday that the organization was considering outsourcing some of its services to three charities as 2011 came to a close. But about 10 days ago, two of those charities backed out. The signal was clear: They wanted no part of The Second Mile. Now the troubled charity is deciding how to move forward without its first and second choices.
One of the organizations that pulled out of negotiations is a Volunteers of America (VoA) chapter based in Harrisburg, Pa. Leaders at he organization made up their mind after they decided the distraction of the Jerry Sandusky trial were too big of an issue. The second organization, Centre County Youth Service Bureau, made no comment to The Patriot News on its decision. Arrow Child & Family Ministries is still considering assuming control of some programs.
Second Mile CEO David Woodle said Tuesday that the charity has three remaining options: Continue to operate, run under a different name, or dissolve. With the negative attention the charity has received thanks to the Sandusky scandal, it seems hard to believe it can survive, at least under its current name. A major rebranding effort would need to be happen for the charity to continue operating.
Read the full story in The Patriot News.
Wednesday, November 23, 2011
Black Friday Activity Attracts Charities
Black Friday is one of the busiest shopping days of the year because of the huge sales available. People all over the country wake up early so they can be the first to get in stores. And now, as detailed in a story we just posted on The NonProfit Times website, charities are getting in on the action.
Many of the organizations getting involved this year are taking a technology-based route to their Black Friday activities. For example, for every user that "checks in" using foursquare, a location-based social network for mobile devices, JC Penney will pledge $25 to The Salvation Army, up to $100,000. The Alexandria, Va.-based organization will also allow donors to give money to their annual Red Kettle Campaign, which kicks off during halftime of tomorrow's Dallas Cowboys Thanksgiving Day game, via on-site smart phones in select cities.
JC Penney will also pledge $50 to The Salvation Army for every angel "adopted" via the Angel Giving Tree Online, where donors can be matched with items needed by those less fortunate. The store, now in its third year, already has had 100,000 angels adopted.
The USO is taking a slightly different approach to Black Friday. "The USO Wishbook," launched in conjunction with the holiday season, sells items for soldiers and their families on their website. According to Kelli Seely, the organization's chief development officer, it's their first attempt at an alternative giving catalog. The gifts available on the website range from the simple to the remarkable. You can make a $25 phone call from a soldier or purchase $5,000 total entertainment system. The USO plans to keep the Wishbook online throughout the year, adapting it for other holidays.
Given the popularity of Black Friday, it seems likely these programs will be met with a lot of success. But we'll have to wait a couple of days to see their real impact. Make sure to read the full story on this topic over on our website.
Many of the organizations getting involved this year are taking a technology-based route to their Black Friday activities. For example, for every user that "checks in" using foursquare, a location-based social network for mobile devices, JC Penney will pledge $25 to The Salvation Army, up to $100,000. The Alexandria, Va.-based organization will also allow donors to give money to their annual Red Kettle Campaign, which kicks off during halftime of tomorrow's Dallas Cowboys Thanksgiving Day game, via on-site smart phones in select cities.
JC Penney will also pledge $50 to The Salvation Army for every angel "adopted" via the Angel Giving Tree Online, where donors can be matched with items needed by those less fortunate. The store, now in its third year, already has had 100,000 angels adopted.
The USO is taking a slightly different approach to Black Friday. "The USO Wishbook," launched in conjunction with the holiday season, sells items for soldiers and their families on their website. According to Kelli Seely, the organization's chief development officer, it's their first attempt at an alternative giving catalog. The gifts available on the website range from the simple to the remarkable. You can make a $25 phone call from a soldier or purchase $5,000 total entertainment system. The USO plans to keep the Wishbook online throughout the year, adapting it for other holidays.
Given the popularity of Black Friday, it seems likely these programs will be met with a lot of success. But we'll have to wait a couple of days to see their real impact. Make sure to read the full story on this topic over on our website.
Monday, November 14, 2011
Paterno, Penn State President Out
UPDATE, 11/14/2011: It was announced this morning that The Second Mile board of directors have accepted the resignation of Jack Raykovitz. He had been CEO of the organization for 28 years. Read more about this breaking story on our website.
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No doubt you have heard of the shocking child sex abuse scandal that has come out of Penn State. Although it was former defensive coordinator, and founder of the charity The Second Mile, Jerry Sandusky who has been charged with allegations of sexually abusing children, much of the discussion has centered around top Penn State officials. Two officials, Athletic Director Tim Curley and Vice President for Finance and Business Gary Schultz, have already been charged with perjury and failing to report suspected child abuse. But much of the questioning has been directed towards legendary football coach Joe Paterno and Penn State President Graham Spanier. And late last night, those two men became the first two to take the fall in this scandal, as the Board of Trustees at Penn State voted unanimously to relieve them of their duties.
The news broke late last night, only hours after Paterno announced he would retire at the end of the season. The man affectionately known as "Joe Pa" said he was "devastated" by the developments and urged the Board "not to spend a single minute discussing my status." Apparently they didn't take too kindly to that suggestion.
For Paterno, it's an unfortunate ending to a career that spanned 61 years. He is the winningest coach in major college football history, leading Penn State since 1966 and turning it not only into a successful football team but an iconic brand in the sports world. Even if you aren't too familiar with college sports, you probably have heard about Joe Paterno
All of this discussion about Paterno, Spanier, and other Penn State officials obscures the serious crimes for which Sandusky is being accused. Reading the Grand Jury testimony (WARNING: Contains graphic descriptions) from wide-receiver coach Mike McQueary, who alleges to have witnessed Sandusky molesting a young boy, is chilling. What's even more disturbing is that because this went unreported to the police, Sandusky wasn't barred from activities with children at his charity until 2008. That's when he informed them he was under investigation. And even then, he didn't officially leave the organization until he retired in 2010.
In yesterday's report on The NonProfit Times, we reported on The Second Mile's tax filings and annual report. They indicated that the organization experienced a $228,000 operating deficit last year. In addition, revenue fell to $2.1 million, from $4.1 million in 2008. The 12-page annual report cited overall giving to charities being down 11 percent last year as the organization’s board used a “rainy day fund to provide needed services” as it “received more requests to help children and teens than ever.” With these revelations about Sandusky's alleged crimes now coming to light, it's unclear how much longer the charity will be able to operate.
This story will undoubtedly continue to evolve over the coming weeks and months. Stay tuned to The NonProfit Times for any new information that comes out on the case or the future of Second Mile.
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No doubt you have heard of the shocking child sex abuse scandal that has come out of Penn State. Although it was former defensive coordinator, and founder of the charity The Second Mile, Jerry Sandusky who has been charged with allegations of sexually abusing children, much of the discussion has centered around top Penn State officials. Two officials, Athletic Director Tim Curley and Vice President for Finance and Business Gary Schultz, have already been charged with perjury and failing to report suspected child abuse. But much of the questioning has been directed towards legendary football coach Joe Paterno and Penn State President Graham Spanier. And late last night, those two men became the first two to take the fall in this scandal, as the Board of Trustees at Penn State voted unanimously to relieve them of their duties.
The news broke late last night, only hours after Paterno announced he would retire at the end of the season. The man affectionately known as "Joe Pa" said he was "devastated" by the developments and urged the Board "not to spend a single minute discussing my status." Apparently they didn't take too kindly to that suggestion.
For Paterno, it's an unfortunate ending to a career that spanned 61 years. He is the winningest coach in major college football history, leading Penn State since 1966 and turning it not only into a successful football team but an iconic brand in the sports world. Even if you aren't too familiar with college sports, you probably have heard about Joe Paterno
All of this discussion about Paterno, Spanier, and other Penn State officials obscures the serious crimes for which Sandusky is being accused. Reading the Grand Jury testimony (WARNING: Contains graphic descriptions) from wide-receiver coach Mike McQueary, who alleges to have witnessed Sandusky molesting a young boy, is chilling. What's even more disturbing is that because this went unreported to the police, Sandusky wasn't barred from activities with children at his charity until 2008. That's when he informed them he was under investigation. And even then, he didn't officially leave the organization until he retired in 2010.
In yesterday's report on The NonProfit Times, we reported on The Second Mile's tax filings and annual report. They indicated that the organization experienced a $228,000 operating deficit last year. In addition, revenue fell to $2.1 million, from $4.1 million in 2008. The 12-page annual report cited overall giving to charities being down 11 percent last year as the organization’s board used a “rainy day fund to provide needed services” as it “received more requests to help children and teens than ever.” With these revelations about Sandusky's alleged crimes now coming to light, it's unclear how much longer the charity will be able to operate.
This story will undoubtedly continue to evolve over the coming weeks and months. Stay tuned to The NonProfit Times for any new information that comes out on the case or the future of Second Mile.
Wednesday, August 31, 2011
Arab American Philanthropy On The Rise
Philanthropy among Arab Americans is increasing, according to a report in New America Media; and The Center for Arab American Philanthropy (CAAP) is a big part of that increase. The Dearborn, Mich.-based group, which is a project of the Arab Community Center for Economic and Social Services (ACCESS), is the first national giving program in the Arab American community. This doesn't mean that philanthropy is a foreign subject to this group, however. The article notes that charity is something that has long been stressed by the Arab culture. For example, there is an Islamic tradition known as Zakat, that requires followers to set aside a portion of their income for those in need.
Nonprofits like ACCESS, which was formed in 2005, have been very important for the Arab community in the aftermath of the 9/11 attacks. They have sought to fight the negative perception of Islam that some Americans had after the deadly attacks. Kate Casa, director of communications at ACCESS, says that many in her community were reluctant to participate in public philanthropy for fear of being accused of supporting extremist groups. To combat this fear, ACCESS has created a system of transparency.
To read the full article, including details on the organizations that received CAAP grants, head on over to New America Media.
Nonprofits like ACCESS, which was formed in 2005, have been very important for the Arab community in the aftermath of the 9/11 attacks. They have sought to fight the negative perception of Islam that some Americans had after the deadly attacks. Kate Casa, director of communications at ACCESS, says that many in her community were reluctant to participate in public philanthropy for fear of being accused of supporting extremist groups. To combat this fear, ACCESS has created a system of transparency.
To read the full article, including details on the organizations that received CAAP grants, head on over to New America Media.
Monday, August 29, 2011
9/11 Widows Join Nonprofit For Families Of Fallen Soldiers
Those who lost loved ones on 9/11 might know about the pain of loss more than anyone. That's why it should be of no surprise that two of the board members of the newly created Massachusetts Military Heroes Funds are 9/11 widows. The Eveningtribune.com published a report on these two individuals, Christie Coombs and Cindy McGinty, and why they decided to join the organization, which is dedicated to providing support to families who have lost loved ones to war. The group relies on private donations, and also receives a percentage of revenue from the sale of United We Stand licence plates.
In the story, Coombs said she felt it was natural for her and other 9/11 families to be involved in this project, when the office of the late Senator Ted Kennedy approached her and other families to create the organization in 2009. Combs lost her husband Jeff, who was aboard the flight which crashed into the World Trade Center back on the fateful September day. She said her experience dealing with loss motivated her to do something good for other families. McGinty, the other 9/11 widow on the board, lost her husband Mike, who worked in the Twin Towers.
With the 10th anniversary of the 9/11 attacks approaching, it's good to read stories like this. We would also like to remind you that the September 1st issue of The NonProfit Times will feature a Special Report on the anniversary, so keep an eye out on our site for that. You can read the rest of the story on these two widows on Eveningtribune.com.
In the story, Coombs said she felt it was natural for her and other 9/11 families to be involved in this project, when the office of the late Senator Ted Kennedy approached her and other families to create the organization in 2009. Combs lost her husband Jeff, who was aboard the flight which crashed into the World Trade Center back on the fateful September day. She said her experience dealing with loss motivated her to do something good for other families. McGinty, the other 9/11 widow on the board, lost her husband Mike, who worked in the Twin Towers.
With the 10th anniversary of the 9/11 attacks approaching, it's good to read stories like this. We would also like to remind you that the September 1st issue of The NonProfit Times will feature a Special Report on the anniversary, so keep an eye out on our site for that. You can read the rest of the story on these two widows on Eveningtribune.com.
Thursday, August 25, 2011
"Jewish Indiana Jones" Reined In
File this one under "bizarre but true." Menachem Youlus, a self-proclaimed "Jewish Indiana Jones" who co-founded a Jewish charity to rescue Torah scrolls, has been arrested according to a report in The Wall Street Journal. Youlus will be prosecuted in New York City on charges of defrauding donors of hundreds thousands of dollars.
According to the charges against him, Youlus made up accounts that his charity, Save a Torah, found Torahs in Europe. These scrolls were said to have been lost or hidden during the Holocaust, and the charity claimed to have found some in concentration camps. Youlus used these stories to get money for Save a Torah, which raised $1.2 million between 2004 and 2010. To make matters worse for him, he is accused of embezzling $145,000 of those funds to the personal bank accounts of his Maryland business, the Jewish Book Store.
But wait, there's more! Youlus was also said to have claimed that Torahs he bought from dealers were rescued, using those claims to submit inflated and doctored invoices to his charity. This allowed him to be reimbursed at a far higher price than he actually paid for the scrolls. If convicted, Youlus will face up to 20 years in prison. No word as of yet if he claimed to have found the Holy Grail.
You can read the full article of this bizarre story in The Wall Street Journal.
According to the charges against him, Youlus made up accounts that his charity, Save a Torah, found Torahs in Europe. These scrolls were said to have been lost or hidden during the Holocaust, and the charity claimed to have found some in concentration camps. Youlus used these stories to get money for Save a Torah, which raised $1.2 million between 2004 and 2010. To make matters worse for him, he is accused of embezzling $145,000 of those funds to the personal bank accounts of his Maryland business, the Jewish Book Store.
But wait, there's more! Youlus was also said to have claimed that Torahs he bought from dealers were rescued, using those claims to submit inflated and doctored invoices to his charity. This allowed him to be reimbursed at a far higher price than he actually paid for the scrolls. If convicted, Youlus will face up to 20 years in prison. No word as of yet if he claimed to have found the Holy Grail.
You can read the full article of this bizarre story in The Wall Street Journal.
Wednesday, August 17, 2011
Online Game Helps Charity
Who said gaming has no real world value?
Mashable.com, the online technology/entertainment news site, recently wrote a report on an online game called Funky Nurse. It was developed by Miniclip and the UK-based charity Teenage Cancer Trust. The player takes the role of a nurse in a cancer care unit and must do whatever possible to help keep the patients happy. This includes everything from taking them to entertainment rooms to finding upgrades for the hospital. The game is meant not just for entertainment purposes, but also for education: Both on the disease and the charity.
At the end of each level, players are given statistics about cancer amongst teens in the UK. The Mashable story lists one of the statistics: “Every day in the UK, six young people aged 13 to 24 are told they have cancer. That's about 2,100 per year." Players are then given the option of learning more about Teenage Cancer Trust before moving onto the next level. The game is currently played by 65 million people on Miniclip.com, giving the charity a lot of visibility.
This is not the first time gaming has been use to advance a cause. The annual Games For Change conference is devoted to giving developers a platform to showcase games that are meant to serve a purpose beyond simple entertainment. NPT covers this conference every year, most recently when we covered Al Gore's keynote address at this year's event.
If you want to learn more about Funky Nurse, read the full article over at Mashable.
Mashable.com, the online technology/entertainment news site, recently wrote a report on an online game called Funky Nurse. It was developed by Miniclip and the UK-based charity Teenage Cancer Trust. The player takes the role of a nurse in a cancer care unit and must do whatever possible to help keep the patients happy. This includes everything from taking them to entertainment rooms to finding upgrades for the hospital. The game is meant not just for entertainment purposes, but also for education: Both on the disease and the charity.
At the end of each level, players are given statistics about cancer amongst teens in the UK. The Mashable story lists one of the statistics: “Every day in the UK, six young people aged 13 to 24 are told they have cancer. That's about 2,100 per year." Players are then given the option of learning more about Teenage Cancer Trust before moving onto the next level. The game is currently played by 65 million people on Miniclip.com, giving the charity a lot of visibility.
This is not the first time gaming has been use to advance a cause. The annual Games For Change conference is devoted to giving developers a platform to showcase games that are meant to serve a purpose beyond simple entertainment. NPT covers this conference every year, most recently when we covered Al Gore's keynote address at this year's event.
If you want to learn more about Funky Nurse, read the full article over at Mashable.
Monday, August 15, 2011
Does Mexico Have A Charitable Giving Problem?
Mexico has all the trappings of a perfect tourist destination: Beaches, great weather, beautiful scenery, and plenty of fun activities. This doesn't mean it's without problems. Gruesome murders and violence have plagued the country in recent years, sparking policy makers and advocacy groups to try and find a reason for it. There are plenty of theories out there, but The Washington Post has reported on one that I find very interesting: A lack of corporate and individual philanthropy.
The article cites a report by the Organization for Economic Cooperation and Development (OECD) that lists Mexico as having very weak charitable giving numbers. This is despite the fact that the country has the lowest taxes and second-highest inequality of income of the 34 nations in the OECD. Although philanthropy levels have improved since a 0.04 percent mark in 2003, they are still lower than they should be.
Much of the charitable giving that does go on in Mexico is very informal, according to the Post article. Philanthropists don't want to take public credit for fear of extortion and kidnapping. This has led to a population that is eager to donate because of the recent outbreak in violence, but one that is also weary of attracting too much attention to themselves. There is also a serious corruption problem among Mexican officials, leaving potential donors skeptical of charities. Mistrust is one of the core reasons behind Mexico's philanthropy problem.
It's anybody's guess as to how to increase Mexico's charitable giving. Some will say that decreasing the violence is key, but that's a whole problem in and of itself. The article ends with a suggestion from the executive director of the Mexican Center for Philanthropy, who says that Mexico needs tax reform. This is a very fascinating issue, and I suggest heading over to The Washington Post to read the full article.
The article cites a report by the Organization for Economic Cooperation and Development (OECD) that lists Mexico as having very weak charitable giving numbers. This is despite the fact that the country has the lowest taxes and second-highest inequality of income of the 34 nations in the OECD. Although philanthropy levels have improved since a 0.04 percent mark in 2003, they are still lower than they should be.
Much of the charitable giving that does go on in Mexico is very informal, according to the Post article. Philanthropists don't want to take public credit for fear of extortion and kidnapping. This has led to a population that is eager to donate because of the recent outbreak in violence, but one that is also weary of attracting too much attention to themselves. There is also a serious corruption problem among Mexican officials, leaving potential donors skeptical of charities. Mistrust is one of the core reasons behind Mexico's philanthropy problem.
It's anybody's guess as to how to increase Mexico's charitable giving. Some will say that decreasing the violence is key, but that's a whole problem in and of itself. The article ends with a suggestion from the executive director of the Mexican Center for Philanthropy, who says that Mexico needs tax reform. This is a very fascinating issue, and I suggest heading over to The Washington Post to read the full article.
Wednesday, July 27, 2011
NPTtv Summary: Grassley's At It Again
Note: This is a summary from a story from the newest episode of The NonProfit Times TV.
A familiar senator to nonprofits is back to his old tricks.
Senator Charles Grassley (R-IA) introduced legislation that will go after charities that put money in off-shore accounts to avoid paying income taxes. The senator, who has put nonprofits under federal scrutiny for the past several years, wants to block such organizations from getting federal grants from a program that helps prisoners re-enter society.
This move comes a year after a committee hearing showed that the Boys & Girls Clubs held more than $50,000,000 off-shores in the Camen Islands, British Virgin Islands, and Bermuda.
A familiar senator to nonprofits is back to his old tricks.
Senator Charles Grassley (R-IA) introduced legislation that will go after charities that put money in off-shore accounts to avoid paying income taxes. The senator, who has put nonprofits under federal scrutiny for the past several years, wants to block such organizations from getting federal grants from a program that helps prisoners re-enter society.
This move comes a year after a committee hearing showed that the Boys & Girls Clubs held more than $50,000,000 off-shores in the Camen Islands, British Virgin Islands, and Bermuda.
Wednesday, June 29, 2011
NPTtv Summary: 9/11 Charities After Bin Laden
It was the news many September 11th charities had been waiting for: Osama Bin Laden is dead.
But even after the death of 9/11 mastermind in May, these charities insist their will be no changes in the work they do. For example, Voices of September 11th still held its annual fundraising gala in New York City, featuring former Mayor Rudy Giuliani. In addition, plans for the 10th anniversary of the 9/11 attacks are still moving forward.
Other charities are following this path as well. World Cares Center Executive Director Lisa Orloff says that she believes the news of Bin Laden’s death will have no affect on their anniversary event, or their fundraising strategies. Orloff did not plan to comment specifically on Bin Laden's death, but she did say her group's outreach towards communities would adjust to this monumental change. She did not, however, go into specifics.
But even after the death of 9/11 mastermind in May, these charities insist their will be no changes in the work they do. For example, Voices of September 11th still held its annual fundraising gala in New York City, featuring former Mayor Rudy Giuliani. In addition, plans for the 10th anniversary of the 9/11 attacks are still moving forward.
Other charities are following this path as well. World Cares Center Executive Director Lisa Orloff says that she believes the news of Bin Laden’s death will have no affect on their anniversary event, or their fundraising strategies. Orloff did not plan to comment specifically on Bin Laden's death, but she did say her group's outreach towards communities would adjust to this monumental change. She did not, however, go into specifics.
NPTtv Summary: Watching the Watchdogs
Note: This is a summary of one of the stories from the latest webcast of The NonProfit Times TV.
It looks like it's the watchdogs turn to be watched.
Mark Fitzgibbons, an attorney and direct response fundraising expert, has launched CharityRegulatorWatch.com. This new website is designed to make sure charity regulators are following the laws when it comes to their review of charitable organizations. According to Fitzgibbons, these regulators are often the biggest violators of the laws governing charities, mostly because they are not accountable. Charity Regulator Watch aims to change that.
Still, Fitzgibbons stresses that his site is not meant to be legal advice for charities. It is just meant to provide information and engage in occasional activism.
It looks like it's the watchdogs turn to be watched.
Mark Fitzgibbons, an attorney and direct response fundraising expert, has launched CharityRegulatorWatch.com. This new website is designed to make sure charity regulators are following the laws when it comes to their review of charitable organizations. According to Fitzgibbons, these regulators are often the biggest violators of the laws governing charities, mostly because they are not accountable. Charity Regulator Watch aims to change that.
Still, Fitzgibbons stresses that his site is not meant to be legal advice for charities. It is just meant to provide information and engage in occasional activism.
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