Feds: Charity Boss Stole $4 Million

Brian James Brown, the former head of a charity advocating for Native Americans, pleaded not guilty Monday to charges that he stole $4 million from the organization.

According to a report in The Oregonian, Brown was arrested on Sunday at Portland International Airport, just as he was returning from a month-long trip to Thailand. Authorities say that his excursion was paid for, in part, by the funds allegedly stolen from National Relief Charities (NRC).

The arrest comes 11 days after a federal grand jury in Portland handed up an indictment against Brown, which charged him and unnamed co-conspirators with attempting to defraud NRC. The indictment further stated that Brown stepped down as head of the organization in 2005 to form his own nonprofit, Charity One Inc., which did business as the American Indian Education Endowment Fund.

Brown allegedly convinced NRC to fund Charity One with $4 million from 2006 to 2009, saying the funds would be used to offer scholarships to Native Americans.

"Instead," the government wrote in a news release, "Brown and unnamed co-conspirators allegedly used the entire $4 million for their personal benefit."

To keep the checks of either $100,000 or $200,000 coming in, Brown allegedly delivered falsified financial statements to prove that the money was being used appropriately.

Brown was allowed to go free after his arraignment as he awaits his Dec. 17 trial. He was ordered by U.S. Magistrate Judge Dennis J. Hubel to surrender his passport, wear a GPS ankle monitor, and stay at home from 8 p.m. to 5 a.m.

You can read the full report in The Oregonian.

Mercersburg Academy Alum Donates $100 Million

In what was the second-largest gift ever given to an independent school in the U.S., Mercersburg Academy announced Thursday that it had received a gift of nearly $100 million from alumna Deborah J. Simon and her foundation.

The donation, which Simon said was made out of gratitude for her two years at the Mercersburg, Pa.-based institution, is the leading gift so far in the school's "Daring to Lead" $300 million capital campaign. When combined with recent campaign gifts that include support for a new student center, Simon and the Deborah Joy Simon Foundation have pledged nearly $107 million to Mercersburg Academy.

"We are thrilled beyond words for this transformational gift and the confidence that Deborah and her foundation have placed in us," said Douglas Hale, head of school. "Because of their vision and generosity, young men and women from all walks of life will have access to an extraordinary education that will allow them to realize their potential."

Simon, who is a member of the Mercersburg Academy Board of Regents, praised Hale for his "vision" for the school. "This is a place where faculty are encouraged to experiment with new ideas and technologies to engage students more fully in their education," she said.

According to a press release announcing the donation, Simon's gift will help Mercersburg Academy achieve its goal of ensuring its education is affordable for its students. Currently, 32 percent of students receive need-based financial aid, and 49 percent receive a combination of merit and need-based scholarships toward tuition. The Academy accepts students in grades 9-12.

Previous gifts to U.S. independent schools that equaled or surpassed Simon's gift include a $128 million donation to the Newtown, Pa.-based George School in 2007 and $100 million to the Hightstown, N.J.-based Peddie School in 1993. The previous high donation to the Mercersburg Academy came in 2000 by alumnus and former President of the Board of Regents H.F. "Gerry" Lenfest, who donated $35 million.

Mich. Gov. Snyder Defends Use Of Nonprofit Funds

Amid reports that his nonprofit paid for the living and travel expenses of a government official, Michigan Gov. Rick Snyder is saying that taxpayers should not be alarmed.

According to a report in Crain's Detroit Business, Snyder spoke out in defense of the New Energy to Reinvent and Diversify Fund (NERD), a foundation he started to promote various charitable causes. Various reports indicated that NERD paid $4,200 to cover Detroit Emergency Manager Kevyn Orr's stay at a hotel and that the fund is also paying for Orr's flights home to see his family in Maryland on the weekends.

When asked about whether taxpayers should be concerned about this at an event at the Michigan State University club, Snyder indicated that it was an appropriate use of the organization's money and that it was actually saving people money.

"We've been very clear it's all legal, it's all been presented, the information that's required," Snyder said. "It doesn't go to my personal benefit, it's actually offsetting costs of government, so people should feel comfortable with that."

NERD is registered as a social welfare, or 501(c)(4), organization, meaning that donors can contribute to the fund anonymously. Federal tax records show that the organization raised $368,000 in 2012, down from the $1.3 million it received in 2011. It had total expenses of $590,453 last year, compared with spending of $865,830 in 2011.

You can read the full story in Crain's Detroit Business.

Local Organization's Nonprofit Status In Question

A deal that would move a camp for the homeless in Portland, Ore., has come into doubt after questions about the tax-exempt status of the organization that pays for the camp have emerged.

According to a report on KATU.com, the city of Portland and Right 2 Dream Too came to agreement on a plan that would move the camp to the city' Pearl District. Yet that plan is now in jeopardy after a letter from the Internal Revenue Service (IRS) surfaced that claimed the organization that runs the camp is not actually a nonprofit.

City Commissioner Amanda Fritz, who has worked for years to find Right 2 Dream Too a new home, told KATU that she was not aware that the camp was not recognized as a tax-exempt organization by the IRS. She said that determining the exact status of the organization had to be cleared up before the deal could be finalized.

Right 2 Dream Too's website lists its current monthly costs as $1,500 per month and covers these expenses through donations. Fritz confirmed that the camp would probably not have to pay rent at its new location. When contacted by KATU, Ibrahim Mubarak, the camp's leader, refused to comment on the camp's finances.

You can read the full story on KATU's website.

The September 15 Issue Of The NonProfit Times

Two is always better than one, and that's especially true when it comes to The NonProfit Times. We have just released the September 15 issue meaning you'll have a double dose of NPT this month.

Here's some of what you can expect to find within the pages of the new edition of NPT:

Special Report

• Special Focus: Donor Management Software: Each year, NPT examines the benefits of donor management software and this year's edition of places the spotlight on cloud-based programs. The report also features the most up-to-date list of donor management software, including pricing.

Articles

• Pennsylvania's Property Tax Exemption Might Go To Voters: Battle lines are being drawn in Pennsylvania between the courts and the legislative bodies with nonprofits squarely in the crossfire. At issue is who gets to decide if an organization “of purely public charity” is exempt from property tax.
• New ABS Boss Changing Fundraising Apparatus: A new chief executive at the American Bible Society (ABS) is putting his mark on the 197-year-old charity, just months into his tenure. Two key development positions have been vacated and the organization switched direct response vendors since Douglas Birdsall took over as president and CEO in March.
• Unlocking Monthly Gifts: Eight animals are trapped in cages but all a donor has to do is make a monthly gift to Humane Society International (HIS) and the gate is unlocked. The higher the monthly gift, more animals or larger ones are set free, not only in RL (real life) but on the Web, too.

Columns

• Loyalty Goes Both Ways: Bridget Brandt, a former volunteer for Big Brothers Big Sisters, had a message to attendees of the 2013 Bridge Conference: Don't treat your volunteers like BBBS treated me.
• Committees That Work: A well-designed planned giving committee can provide you with a remarkable advantage. However, it is important to avoid the common trap of expecting your volunteer committee members to seek planned gifts from their clients.

Microsoft To Offer Nonprofits Office 365 Free Of Charge

Tech giant Microsoft announced Tuesday that it would be offering qualified nonprofits free versions of its Office 365 program.

As reported on CNET.com, this offer allows nonprofits in 41 countries worldwide to use Office 365 -- which contains word processing, e-mail, video conferencing, and calendar programs -- in their workplace free of charge. The donation program is part of the Redmond, Wash.-based software company's larger "Technology for Good" initiative, which distributes $2 million worth of software every day to organizations around the globe.

"In the hands of nonprofit organizations, technology can boost productivity, increase effectiveness through better collaboration, and extend services to new communities and individuals in need," Microsoft wrote on its web site. "Moreover, technology can be a powerful force that opens exciting opportunities for nonprofits to better achieve their missions and accelerate their impact."

Organizations must be recognized as a tax-exempt organization in their respective countries to qualify for this giveaway. In addition, eligible organizations should work to improve their communities in a meaningful way, including, but not limited to:

• Providing relief to the poor;
• Advancing education;
• Improving social welfare;
• Preserving culture;
• Preserving or restoring the environment;
• Promoting human rights; and,
• Establishment of a civil society.

One confirmed, organizations will have the choice to upgrade their Office 365 program to a cloud-only version for a reduced price of $4.50 (down from $20). You can find out more about this offer on Microsoft's website. 

Do you think your nonprofit will take advantage of this program? Let us know in our comments section.

Nonprofit, Founder Ordered To Pay Employee After Racist Rant

A federal jury in New York ruled that a nonprofit and its founder must pay a former employee $280,000 after she was subjected to a rant using racial slurs.

According to a report on CNN.com, the ruling stems from a lawsuit filed by Brandi Johnson against STRIVE, an employment center in East Harlem section of Manhattan. Johnson claimed in her suit that STRIVE’s founder, Rob Carmona, repeatedly harassed her, culminating in a rant that used slurs against African-Americans. Johnson, who is black, said in court that the incident was the last straw for her. She sent a formal complaint to the organization’s CEO, Phil Weinberg on April 11, 2012 but was allegedly told that she was being "out of line" and "emotional."

Johnson was fired two months later, which she alleges was done as retaliation for her complaints.

The jury ruled Tuesday that Carmona, who founded STRIVE in 1984, must pay Johnson $25,000 and the organization must contribute $5,000 in punitive damages. This comes a week after jurors awarded Johnson $250,000 in compensatory damages.

"We are disappointed by the verdict, as we do not believe that it comports with the full facts applicable to the case," said Carmona's lawyer, Diane Krebs, via a statement. "Nevertheless, we respect the jury's decision and the judicial process. We are exploring all our options moving forward, including appeal, and look forward to the judicial process taking its entire course."

While testifying last Friday Carmona, who identifies as black and Hispanic, tearfully tried to explain his actions. He explained, "I come from a different time." According to STRIVE, Carmona spent his early teenage years in Harlem addicted to drugs and in and out of prison. He found solace in an alternative incarceration program where he cleaned up and eventually attended college. The center's website says that it has helped nearly 50,000 individuals across America enter the workforce.

For her part, Marjorie Sharpe, Johnson's attorney, called the decision "important" because it is the first case where "we essentially have the n-word on trial."

"There are a number of cases where the n-word has been used in a workplace, but usually it's been done between people of different races, and when we're having that discussion, it seems that it's clear that if you're not African-American and you use the n-word, absolutely it's insulting," continued Sharpe.

You can read the full story on CNN's website.

California Nonprofit, Union Spar Over New Contract

A new contract between a Berkeley, Calif., nonprofit and the California Professional Employees (CAPE) union is being held-up because of disagreements regarding a potential pay raise for the organization's workers.

According to a report in The Daily Californian, Building Opportunities for Self-Sufficiency (BOSS) -- which provides food and shelter for the homeless -- and CAPE began negotiations for a new contract in January, but have yet to reach common ground on pay. The union is demanding a 2-percent pay raise, an amount that BOSS Executive Director Donald Frazier said would bankrupt the organization.

"They’re asking me to increase the deficit, and I’m just not willing to do that," The Daily Californian quoted Frazier as saying. "BOSS is not equipped to do that." BOSS has an annual budget of more than $5 million, according to its most recent federal Form 990. The organization has 90 employees, most of whom are members of CAPE.

In an interview with The NonProfit Times, Frazier said they got an extension of the current contract until August 31. As to what happens after that, he said that it's hard to say at this point, but that it's possible they will get another extension of the contract so they can continue negotiations.

"I've asked the union to work with me for one year. We can certainly do a two-percent increase eventually, but we need to stabilize financially first," said Frazier.

A representative from CAPE took issue with Frazier's statement, saying that employees at BOSS have not received a pay raise since 2006. Christoper Graeber, who is CAPE's business representative, reportedly said that the only concession BOSS is offering is to give workers an extra day-off each year.

Graeber reportedly described the wage increases sought as "minimal," and expressed disappointment that Frazier is refusing "to bend at all."

You can read the full story in The Daily Californian.

Thieves Return Stolen Computers To Nonprofit

When something is stolen from your home or place of work, the last thing you would expect is for it to be politely returned by the perpetrators. Yet that is exactly what happened to one nonprofit in California.

Just hours after six computers were stolen from the offices of San Bernardino County Sexual Assault Services on July 31, a local ABC affiliate reported that the burglars apparently had a change of heart: The computers were returned intact along with a handwritten note that said [sic]: "We had no idea what we were takeing. Here your stuff back. We hope that you guys can continue to make a difference in people's lives. God Bless."

"I don't know what to feel," Executive Director Candy Stallings told KABC. "One minute I'm devastated, and the next minute I just thought, 'Wow, this is just incredible.'" Stallings plans to frame the note left by the burglars to "tell each and everyone one of the staff here that do this work that you never know when you're going to touch somebody."

Police said that the thieves were able to bypass the organization's security systems by clipping phone wires and alarm cables. They were then able to enter the office through a crawlspace.

Though Stallings will be able to breathe a sigh of relief with their computers now returned, the nonprofit will still be out $5,000 because of the damages caused by the burglars. Individuals interested in donating should e-mail candyir@aol.com or call 909-855-8884.

You can read the full story on KABC's website.

Nonprofit To Oversee Broadband Network

The city councils of two Central Illinois towns have approved a measure that would create a private nonprofit to oversee a large broadband network running through both locations.

The Urbana-Champaign Big Broadband network (UC2B) was created by the towns of Urbana and Champaign to boost Internet access in low-income areas, but there were concerns over government control of the network. That's why, according to a report in The News Gazette, both city councils passed the bill to have it run by a nonprofit.

Before it could pass, however, several key changes had to be made to the bill. This includes a requirement that the nonprofit submit an annual report to the cities and that the network's high, self-imposed standards for procuring minority contractors be maintained. Another key provision, which was critical to gain the support of Urbana Alderman Charlie Smyth, was to allow attendees of the organization's board meeting to provide their input.

The board will not have to follow Illinois' Open Meetings Act, which has strict requirements for advance public notification of meetings and the accessibility of meetings. Council members in Urbana and Champaign believed those requirements would hurt the board's efficiency.

The UC2B network, which cost $30 million to create, is currently being funded by a federal grant created in 2010. That grant expires on Sept. 30 and at that time, much of the expenses will fall on the shoulders of local governments. City officials are confident that it will only need support from the cities for the first six months, just to get it off the ground.

The nonprofit overseeing UC2B, which has not yet been given a name, will be governed by a nine-member board, and the cities of Champaign and Urbana and the University of Illinois will each appoint three members to that board.

You can read the full story in The News Gazette.

Campaign Brings $91 Million To SDSU

San Diego State University (SDSU) just had the most successful fundraising campaign in the school's 116-year history.

The institution announced Thursday that its annual Campaign for SDSU bought in more than $91 million during the 2012-2013 fiscal year, which ended June 30. Overall, the campaign has reached $413.8 million of its $500 million goal.

“We are grateful to our generous alumni and community supporters whose gifts continue to fuel our development as a leading public research university,” said SDSU President Elliot Hirshman. “This record breaking year is a critical milestone in the development of our culture of philanthropy.”

During 2012-2013, SDSU raised nearly $58 million for student scholarships, endowed professorships, and program support. These gifts will enhance the broad institutional goals set forth in “Building on Excellence,” SDSU’s new strategic plan, which builds upon SDSU’s areas of strength and pride: student success, research and creative endeavors and community and communication.

Some of the more notable gifts from this year's campaign include:

• A gift of $3 million from Charles and Chinyeh Hostler to support international programs in the College of Arts and Letters;
• A gift of $1.5 million from the Campanile Foundation board member Terry Atkinson to establish an endowment that will strengthen SDSU’s ambitious research agenda by supporting faculty research; and,
• A $1.5 million endowment from the late Professor Emeritus Donald G Wilson for the College of Engineering.

The Campaign for SDSU, the first campus-wide fundraising event in the school's history, was launched in 2007 as a way to provide new opportunities for students. To date, The Campaign has received more than 43,000 gifts from alumni, friends, faculty, staff, parents and community partners, including 78 gifts of $1 million or more.

You can find more information about the campaign at http://campaign.sdsu.edu/campaign/ 

NY Archdiocese To Let Nonprofit Run Struggling Catholic Schools

In an effort to save six struggling Catholic schools, the Archdiocese of New York has contracted an education nonprofit to run them this fall.

According to a report in The New York Daily News, the Partnership for Inner-City Education (PICE) -- which already has a history of working with Catholic schools -- will take over the finances and oversee the curriculum of the cash-strapped schools, located in the Bronx and Harlem. It marks the first time an independent organization has taken control of a NY parochial school.

“We want to have full enrollment and sustainability for the very long term,” Jill Kafka, executive director of PICE, said according to the report. “We’re really looking to have these schools alive for a long time.”

The six schools are:

• Mt Carmel-Holy Rosary, Our Lady Queen of Angels and St. Mark the Evangelist (Harlem) 
• St. Athanasius, Immaculate Conception (151st Street) and Sacred Heart (South Bronx)

PICE plans to allocate $9 million over the next five years to repair the building of the schools classroom materials, professional development for teachers, enrichment programs and other resources. The archdiocese will continue to oversee religious instruction and will retain ownership of the buildings.

In an announcement on the nonprofit's website, the following goals were laid out in regards to the group's plans for the schools:

• Provide low-income students with the academic preparation, values and life skills they will need to be successful throughout their lives. 
• Develop Catholic schools that are strong operationally and financially by maximizing enrollment, improving efficiency, rationalizing increased costs, and stabilizing revenue sources.

You can read the full story in The NY Daily News.

Queens Nonprofit Head Pleads Guilty To Stealing Funds

The head of a nonprofit youth camp in Queens, N.Y. pleaded guilty Tuesday to stealing hundreds of thousands of dollars in funds allocated by state lawmakers.

Van Holmes, president of the Young Leaders Institute Inc., was arrested on July 16th on charges that he misused $850,000 in member items that were set aside for the organization over several years. According to a report in The Times Ledger, Holmes claimed he would use the money to take campers on trips to Wall Street and Albany, but prosecutors allege that he used nearly $77,000 of the funds to pay employees of an after-school programs he ran.

Holmes has agreed to pay back tens of thousands of dollars to the state.

“Today’s plea and sentencing are an appropriate punishment for the crimes committed against the taxpayers of New York and the children for whom these funds were intended,” said state Attorney General Eric Schneiderman and Comptroller Thomas DiNapoli in a join statement. “We thank the Department of Investigation, as well as staff in both the attorney general’s and comptroller’s offices, for their diligent work and a successful outcome in this case.”

A large portion of the grants that Holmes received came from then-State Sen. Shirley Huntley (D-Queens), who allocated almost $80,000 in funds for Young Leaders Institute. Huntley plead guilty earlier this year to embezzling $88,000 from the Parents Workshop, an education nonprofit she helped create. Her case is not related to Holmes', authorities said.

You can read the full story in The Times Ledger.

Report: Budgets Up, But Women Underpaid At Central Florida Nonprofits

A new report from the Rollins Philanthropy & Nonprofit Leadership Center revealed that while budgets have increased at nonprofits in Central Florida, female executives are still being underpaid when compared to their male counterparts.

The 2013 Nonprofit Compensation and Benefits Report, the latest installment in a bi-annual report, studied the compensation practices of over 160 nonprofits in Central Florida. Margaret Linnane, executive director of Rollins Philanthropy, stated that salary disparity between male and female executives represents a continuation of trend found in their previous reports. She noted, though, that the economy seems to be improving, with 70 percent of nonprofits surveyed implementing some kind of pay raise.

"Almost two thirds of nonprofits reported increased budgets and salaries, especially in the development director field," said Linnane. "There was also a higher turnover rate for employees seeking new jobs and considering retirement. These factors indicate a recovering economy, which we haven’t seen in the reports for some time."

The average pay for all CEOs/Executive Directors in the sample was $99,868 per year; for men, the average annual CEO/Executive Director pay was $115,731; for women, the average annual CEO/Executive Director pay was $87,693. While a majority (57 percent) of those surveyed was women, a greater number of men are found in the CEO/Executive Director positions of the largest organizations, which tend to pay higher wages.

You can view the full report by visiting Rollins Philanthtopy's website.

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Want more data on nonprofit salary and benefits? Purchase The NonProfit Times' 2012 Salary and Benefits Reports, and don't forget to participate in our 2013 Salary Survey (deadline for completion in July 26th).

Housing Nonprofit Investigated Over Use Of Federal Funds

The United States Attorney's office is conducting an investigation to determine whether a now-defunct Portsmouth, Va.-based housing nonprofit misused hundreds of thousands of dollars in federal funds.

The organization, the Center for Community Development Inc., (CCDI) had worked in Portsmouth since 1990 to help renovate and provide homes to the needy. Bill Price, a spokesman for the Commonwealth's Attorney Earle Mobley, told The Virginian-Pilot that investigators were concerned about that amount of money that was used by the nonprofit.

“Based on the amount of money and that a significant portion was federal money, we asked the federal authorities to review it,” said Price.

The Center used $313,000 in federal funds from Portsmouth to renovate three properties, funds that the city eventually had to repay to the U.S. Department of Housing and Urban Development because the projects weren’t completed under the federal HOME program. In addition to the $313,000, CCDI received $256,000 from the city council between November 2011 and December 2012.

CCDI closed in February 2012 and the Internal Revenue Service had put about $43,000 in tax liens on at least one of its properties.

For his part, CCDI founder Maury Cooke said Monday that the group's executive director, Bruce AsBerry, had requested a federal investigation into Portsmouth's money-lending practices and that he believes the organization is a victim of racial discrimination.

You can read the full story in The Virginian-Pilot.

Ex-Kid's Charity CEO Convicted Of Sexual Assault

The founder and former CEO of an Atlanta, Ga.-based kid's charity was convicted on Friday on 22 counts of sexual assault of a child, according to a report on the website of NBC's Colorado affiliate.

Richard Lee Koca, Sr., was the head of Stand Up for Kids, a nonprofit that serves at-risk homeless youth, from its inception in 1990 until August 2012, when an alleged victim came forward. According to a report last year in The Denver Post, Koca was charged with assaulting a child under his protection in his home in Aurora, Colo. At the time, police believed there might have been other victims because of Koca's work with minors, though no others were ever identified.

A spokeswoman for Stand Up for Kids would not comment on the conviction, saying only that the organization is "praying for the family" of the child. The group's website does not list a current CEO, though it lists Kelly Fields as executive director of its Atlanta headquarters.

Prior to his time at Stand Up for Kids, Koca had spent 30 years as an officer in the U.S. Navy, and was posted in spots all around the world, including Panama. Police said that during his time in that country, he served as a Scout Master for the Boy Scouts of America. In addition, he also volunteered at an orphanage in England.

Newtown Shootings Donations To Be Distributed

The community foundation formed after deadly school shootings in Newtown, Conn., has released its initial recommendations about how to distribute the donations received since its inception.

The Newtown-Sandy Hook Community Foundation raised $11.4 million with the help of the United Way of Western Connecticut in the aftermath of the Dec. 14 shootings that left 26 dead, including 20 children. The foundation initially decided to distribute $7.7 million of those funds to the families and survivors, and created a committee to decide how to divvy up the remaining money.

According to a report on NPR, that committee, headed by Kenneth Feinberg and Camille Biros, announced its recommendations at a public forum Thursday at Newtown's Edmond Town Hall. They recommended the remaining $7.7 million be distributed as follows:

• The 26 families of the deceased would each receive $281,000.
• Two teachers who were injured would get $150,000 between them.
• The 12 surviving children who witnessed the shootings would get $20,000 each.

While some praised the plan during the public forum, not everybody was satisfied. Caryn Kauffman, who represents a coalition of victims of prior mass shootings, asked during the meeting why the funds were not going to all of the victims.

"The intent was to give the money to the victims. We're starting from a false premise and this process is re-victimizing the victims," she said, according to the NPR report.

The $7.7 million is expected to be distributed on Aug. 16. You can read the full story on NPR's website.

Poor Fundraising Derails $28M NJ Community Center

Plans for a $28-million Jewish community center have been halted after fundraising for the project ran dry. Only six more weeks of construction were required.

According to a report in The Times of Trenton, plans for the community center, which was being built by the Jewish Community Campus (JCC) Council of Princeton Mercer Bucks, are likely finished as the organization has been unable to secure more funds.

“We’ve been trying to get this back on track,” Howard Cohen, president of the JCC, said in an interview with The Times. “So far, we haven’t succeeded, which means short of a miracle or something else, we can’t continue.”

Planning for the new community center began in 2006 after the old JCC, which is now the Ewing Senior and Community Center, was sold. The Council secured approval from the borough of West Windsor to build the 77,000-square-foot community center in 2007, the construction of which was made possible by using the money from the sale of the old JCC and by borrowing $11 million.

Since the Jewish community in West Windsor had been talking about a new community center for many years, Cohen told The Times he expected that donors would line up to contribute. The donations were not as plentiful as anticipated, however, and construction halted in mid-October when the JCC could no longer pay the construction bills.

According to the New Jersey Jewish News, the JCC is not only short on its construction funds, it also lacks the money to pay back the $11-million loan it received at the beginning of the project. Approximately $6 million of that loan is due in December.

While the Council is attempting to restart the project, Cohen said that he is not optimistic. “At this point, I’m not sure what kind of help there really is,” he said. “The odds are not in our favor.” He also noted that the property could soon go into foreclosure.

You can read the full story in The Times of Trenton.

Russia: Nonprofits Violated 'Foreign Agent' Law

Russian prosecutors announced Tuesday that 215 nonprofits working in the country have violated a recently passed law that places heavy restrictions on outside organizations.

Russia passed a law in November that, among other restrictions, requires organizations to register as "foreign agents" if they receive financing from overseas and are deemed to be engaging in political activities. According to a report in The New York Times, Yuri Chaika, Russia's general prosecutor, said that the 215 organizations named in his report received 6 billion rubles, or about $180 million, over a period of three years yet had violated various aspects of the law.

He noted that 22 of the groups continued to use overseas funds, which is forbidden by the law, while an additional 17 received funding through foreign embassies.

Russian President Vladimir Putin has repeatedly accused foreign governments of using nonprofits to disrupt the country's political system but, in a statement on Tuesday, suggested Chaika show the groups some leniency.

“Analyze this practice to avoid errors and to see if any organization has been rated as a foreign agent, although it does not engage in politics,” he said, according to the news agency Interfax, The Times reported.

You can read the full story in The New York Times.

New Oregon Law Would Punish Charities That Spend Too Little

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.