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.
Showing posts with label nonprofit. Show all posts
Showing posts with label nonprofit. Show all posts
Monday, July 15, 2013
Friday, May 10, 2013
Former Treasurer Faces Theft Charges
The former treasurer of a Tallahassee, Fl.-based nonprofit is being charged with stealing more than 90,000 from the organization.
According to a report on Tallahassee.com, Jamie Pitts was arrested Wednesday after investigators discovered she allegedly wrote checks to herself from the nonprofit for she worked, Child Advocates II, over two years. The organization obtains its donations from Guardian Ad Litem, a group that serves Florida's abused and neglected children.
Authorities allege that Pitts, who had sole access the nonprofit's account, deposited the 159 checks totaling more than $90,000 into her personal bank account. She allegedly represented the checks as expense reimbursements most of which she listed as "voided" when she presented financial statements to Child Advocates' board. The checks were reportedly written starting in August 2010 and ending on April 27, 2012.
Brad Sealey, chair of the board, first discovered the alleged theft in March when he discovered the organization's account had a negative balance. When he was able to gain access to the account by proving he was the chair of Child Advocates' board, he discovered Pitts' alleged actions.
In a sworn statement, Sealey said that the organization's bylaws state that any reimbursements must be approved by a resolution of the board, and that no such resolutions were ever made to reimburse Pitts.
Pitts faces charges of grand theft and organized scheme to defraud. You can read the full story on Tallahassee.com.
According to a report on Tallahassee.com, Jamie Pitts was arrested Wednesday after investigators discovered she allegedly wrote checks to herself from the nonprofit for she worked, Child Advocates II, over two years. The organization obtains its donations from Guardian Ad Litem, a group that serves Florida's abused and neglected children.
Authorities allege that Pitts, who had sole access the nonprofit's account, deposited the 159 checks totaling more than $90,000 into her personal bank account. She allegedly represented the checks as expense reimbursements most of which she listed as "voided" when she presented financial statements to Child Advocates' board. The checks were reportedly written starting in August 2010 and ending on April 27, 2012.
Brad Sealey, chair of the board, first discovered the alleged theft in March when he discovered the organization's account had a negative balance. When he was able to gain access to the account by proving he was the chair of Child Advocates' board, he discovered Pitts' alleged actions.
In a sworn statement, Sealey said that the organization's bylaws state that any reimbursements must be approved by a resolution of the board, and that no such resolutions were ever made to reimburse Pitts.
Pitts faces charges of grand theft and organized scheme to defraud. You can read the full story on Tallahassee.com.
Tuesday, April 16, 2013
Coverage Of The Boston Marathon Bombings
No doubt you have already heard about the tragic bombings at the Boston Marathon yesterday that claimed three lives and left hundreds others injured. Our thoughts go out to the victims and their families.
If you are looking for additional coverage of the incident, you can read our latest story here. You can also see our initial article hours after the bombings here. Stay tuned to NPT for additional coverage of the Boston Marathon bombings.
If you are looking for additional coverage of the incident, you can read our latest story here. You can also see our initial article hours after the bombings here. Stay tuned to NPT for additional coverage of the Boston Marathon bombings.
Thursday, February 7, 2013
The Problem With Personal Devices
The proliferation of easily portable communication devices has changed the working landscape dramatically, but not all changes have been for the good.
Speaking during the 2012 Risk Management and Finance Summit for Nonprofits, Cecil Lynn of Littler, Phoenix outlined some of the problems employers have encountered by providing employees with personal devices at work or allowing employees to use their own devices on company business. This practice is referred to as Bring Your Own Device (BYOD).
Lynn said that although cost saving is the major motivation for BYOD, some employers have found that it has increased their costs rather than lowering them. There are also problems with employment law and organizational security.
He offered the following recommendations for BYOD that can help avoid problems or lessen their consequences:
- Decide whether all employees should be permitted to participate in a BYOD program or whether certain groups should be excluded;
- Install mobile device management software on dual-use devices;
- Require employees to consent to the company’s access to their data on the device;
- Modify or create employee agreements;
- Restrict employees from using cloud-based apps or cloud-based backup or synchronizing with home PCs for work-related data;
- Ensure that use complies with wage-and-hour obligations by prohibiting off-the-clock work and ensuring pay for all hours worked;
- No use by friends or family members;
- Training; and,
- Revise exit interview processes.
Thursday, January 31, 2013
Ex-NY Politician Pleads Guilty In Nonprofit Theft Case
A former New York State Senator pleaded guilty Wednesday to charges that she stole nearly $88,000 from a nonprofit program that uses tax-payer money.
According to a report in The Wall Street Journal, Shirley Huntley (D-Queens) admitted to the court that she wrote $24,500 in checks from the bank account of an education nonprofit she helped start, The Parents Workshop. She said the money was used to buy gifts for her family members, as well as to pay her personal credit card bills.
The embezzling scheme started during her time in the State Senate, which began in 2007 and ended last year when she lost a re-election bid.
U.S. Attorney Loretta Lynch said in a statement that Huntley "used her knowledge of the system to steal funds intended to help some of her neediest constituents, lining her own pockets at the expense of parents, and ultimately their children."
She faces up to five years in prison, though no sentencing date was set as of this writing.
You can read the full story in The Wall Street Journal.
According to a report in The Wall Street Journal, Shirley Huntley (D-Queens) admitted to the court that she wrote $24,500 in checks from the bank account of an education nonprofit she helped start, The Parents Workshop. She said the money was used to buy gifts for her family members, as well as to pay her personal credit card bills.
The embezzling scheme started during her time in the State Senate, which began in 2007 and ended last year when she lost a re-election bid.
U.S. Attorney Loretta Lynch said in a statement that Huntley "used her knowledge of the system to steal funds intended to help some of her neediest constituents, lining her own pockets at the expense of parents, and ultimately their children."
She faces up to five years in prison, though no sentencing date was set as of this writing.
You can read the full story in The Wall Street Journal.
Monday, January 28, 2013
Nonprofits Hurt By New Postal Rules
This is an article that appears in the newest edition of our NPT Weekly eNewsleter. For more stories like this, subscribe to it for free on our website.
***
Six of the United States Postal Service’s (USPS) new workshare discount rates, that took effect yesterday, are shallower for nonprofit mailers than for commercial mailers, and unfairly discriminate against nonprofits, contends the Association of Nonprofit Mailers (ANM), based in Washington, D.C.
Three of the new discounts -- high density letters, high density flats, and automated 5-digit flats -- are higher than the old rates, two categories (high density plus letters and high density plus flats) are new and the discount for non-automated 3-digit flats is slightly lower than the old rate. But the key issue is the discrepancy between the nonprofit and commercial rates.
According to ANM Executive Director Tony Conway, worksharing discounts are provided when mail is prepared in certain ways, such as presorting it by ZIP code, effectively taking some of the burden of sorting and transporting off the United States Postal Service (USPS). The goal is to create incentives to drive the most efficient mailing behavior.
The difference is less than 4 percent or $0.003 per piece for four of the categories (high density letters, high density plus letters, high density flats and high density plus flats), with auto 5-digit flats being 8 percent or $0.007 per piece and a 13.5 percent difference, or $0.007 per piece, for non-automated 3-digit flats.
“We saw that for certain types, nonprofits are receiving a lesser discount than commercial counterparts,” said Conway. “We called the Postal Service on that, raised the issue with the Postal Regulatory Commission (PRC) and filed comments (in November) saying the discrepancies are not allowed by law.”
Section 403(c) of U.S. Code Title 39 prohibits discrimination among mail users when it establishes fees unless it has a reasonable justification. The USPS claims it cannot equalize the nonprofit and commercial rates “without setting the nonprofit base rate higher than would be most efficient and preferable from a policy perspective,” according to PRS Docket No. R2013-1. Conway said the USPS’s argument boils down to setting rates being a complicated process for everything to work perfectly all the time. That argument does not hold water, said Conway.
“So the PRC, unfortunately, instead of pushing back on the postal service, chose not to do that and told the postal service they could implement the new rates,” said Conway. “From a nonprofit standpoint, they’re doing the same things commercial mailers are doing, and to be provided a lesser discount, that’s just blatant discrimination for no good reason.”
Diana Aviv, president and CEO of Independent Sector in Washington, D.C., said, “Independent Sector has long worked to ensure that nonprofit organizations receive equitable treatment under the law relative to their counterparts in the for-profit sector. The proposed worksharing discount is another example of the disparate treatment of nonprofit organizations that should be rejected.” Independent Sector was a signatory along with eight other organizations on a letter of protest that was sent to Rep. Darrell Issa (R-Calif.), chairman of the Committee on Oversight and Government Reform. Issa has previously helped to block legislation that would eliminate the nonprofit rates.
Conway said his organization is prepared to fight the new rates in court, but he hopes that will not be necessary. When the PRC produces its annual compliance determination report in the first quarter of 2013, Conway said he believes it will recognize and correct the oversight. “It appears it was just sloppy work by the postal service in designing new rates and inattention to the argument we raised,” he said.
That is in contrast to two other cases where Conway said the USPS deliberately kept the nonprofit sector out of worksharing discounts. The first time was 1980, when worksharing discounts were established. The USPS said the discounts were only available to the commercial sector. The organization Easter Seals took the USPS to court and won, and from that case ANM was born. In 1996, the USPS again tried to discriminate against nonprofits, said Conway. This time, ANM was the plaintiff and won the case.
If the PRC continues to accept the USPS’s explanation for why some discounts are lower for nonprofits, Conway said ANM will again go to court. “We hope to get it straightened out through the regulatory process, but we’re geared up to go to court and I’m confident we will prevail,” he said.
If the new workshare discounts are allowed to stand, said Conway, that would “drive more inefficiency and send the wrong signals.” It’s not so much a question of revenue foregone, he said, as it is not allowing discrimination against the sector. “We’re not talking about monstrous overpayment, but it’s the principle,” said Conway. “To not (correct the mistake), be called on it and just blow it off is wrong,” he said.
***
Six of the United States Postal Service’s (USPS) new workshare discount rates, that took effect yesterday, are shallower for nonprofit mailers than for commercial mailers, and unfairly discriminate against nonprofits, contends the Association of Nonprofit Mailers (ANM), based in Washington, D.C.
Three of the new discounts -- high density letters, high density flats, and automated 5-digit flats -- are higher than the old rates, two categories (high density plus letters and high density plus flats) are new and the discount for non-automated 3-digit flats is slightly lower than the old rate. But the key issue is the discrepancy between the nonprofit and commercial rates.
According to ANM Executive Director Tony Conway, worksharing discounts are provided when mail is prepared in certain ways, such as presorting it by ZIP code, effectively taking some of the burden of sorting and transporting off the United States Postal Service (USPS). The goal is to create incentives to drive the most efficient mailing behavior.
The difference is less than 4 percent or $0.003 per piece for four of the categories (high density letters, high density plus letters, high density flats and high density plus flats), with auto 5-digit flats being 8 percent or $0.007 per piece and a 13.5 percent difference, or $0.007 per piece, for non-automated 3-digit flats.
“We saw that for certain types, nonprofits are receiving a lesser discount than commercial counterparts,” said Conway. “We called the Postal Service on that, raised the issue with the Postal Regulatory Commission (PRC) and filed comments (in November) saying the discrepancies are not allowed by law.”
Section 403(c) of U.S. Code Title 39 prohibits discrimination among mail users when it establishes fees unless it has a reasonable justification. The USPS claims it cannot equalize the nonprofit and commercial rates “without setting the nonprofit base rate higher than would be most efficient and preferable from a policy perspective,” according to PRS Docket No. R2013-1. Conway said the USPS’s argument boils down to setting rates being a complicated process for everything to work perfectly all the time. That argument does not hold water, said Conway.
“So the PRC, unfortunately, instead of pushing back on the postal service, chose not to do that and told the postal service they could implement the new rates,” said Conway. “From a nonprofit standpoint, they’re doing the same things commercial mailers are doing, and to be provided a lesser discount, that’s just blatant discrimination for no good reason.”
Diana Aviv, president and CEO of Independent Sector in Washington, D.C., said, “Independent Sector has long worked to ensure that nonprofit organizations receive equitable treatment under the law relative to their counterparts in the for-profit sector. The proposed worksharing discount is another example of the disparate treatment of nonprofit organizations that should be rejected.” Independent Sector was a signatory along with eight other organizations on a letter of protest that was sent to Rep. Darrell Issa (R-Calif.), chairman of the Committee on Oversight and Government Reform. Issa has previously helped to block legislation that would eliminate the nonprofit rates.
Conway said his organization is prepared to fight the new rates in court, but he hopes that will not be necessary. When the PRC produces its annual compliance determination report in the first quarter of 2013, Conway said he believes it will recognize and correct the oversight. “It appears it was just sloppy work by the postal service in designing new rates and inattention to the argument we raised,” he said.
That is in contrast to two other cases where Conway said the USPS deliberately kept the nonprofit sector out of worksharing discounts. The first time was 1980, when worksharing discounts were established. The USPS said the discounts were only available to the commercial sector. The organization Easter Seals took the USPS to court and won, and from that case ANM was born. In 1996, the USPS again tried to discriminate against nonprofits, said Conway. This time, ANM was the plaintiff and won the case.
If the PRC continues to accept the USPS’s explanation for why some discounts are lower for nonprofits, Conway said ANM will again go to court. “We hope to get it straightened out through the regulatory process, but we’re geared up to go to court and I’m confident we will prevail,” he said.
If the new workshare discounts are allowed to stand, said Conway, that would “drive more inefficiency and send the wrong signals.” It’s not so much a question of revenue foregone, he said, as it is not allowing discrimination against the sector. “We’re not talking about monstrous overpayment, but it’s the principle,” said Conway. “To not (correct the mistake), be called on it and just blow it off is wrong,” he said.
Tuesday, November 27, 2012
Former Salvation Army Director Charged With Theft
The former executive director of a Salvation Army facility has been charged in the alleged theft of toys and donations from the organization's Toronto warehouse.
David Rennie was fired after the charity announced last week that 100,000 items worth about $2 million went missing from the facility over a period of two years, according to a report in The Huffington Post. Rennie is charged with theft, possession of stolen goods, and breach of trust. He will appear in court on Jan. 4.
According to an article in The Toronto Star, the alleged theft first came to light after an anonymous whistleblower, who is believed to be an employee at the warehouse, informed the Salvation Army that there were irregularities at the facility. After a month-long internal audit, it was discovered that toys and donations had gone missing, and Rennie was fired shortly after.
Police found the missing items in a warehouse northwest of Toronto, were 146 wooden platforms were stacked with toys, cribs, strollers, and other items.
You can read the full story in The Huffington Post.
David Rennie was fired after the charity announced last week that 100,000 items worth about $2 million went missing from the facility over a period of two years, according to a report in The Huffington Post. Rennie is charged with theft, possession of stolen goods, and breach of trust. He will appear in court on Jan. 4.
According to an article in The Toronto Star, the alleged theft first came to light after an anonymous whistleblower, who is believed to be an employee at the warehouse, informed the Salvation Army that there were irregularities at the facility. After a month-long internal audit, it was discovered that toys and donations had gone missing, and Rennie was fired shortly after.
Police found the missing items in a warehouse northwest of Toronto, were 146 wooden platforms were stacked with toys, cribs, strollers, and other items.
You can read the full story in The Huffington Post.
Thursday, November 8, 2012
Webinar: The Nonprofit CFO’s Survival Guide
Being a Chief Financial Officer (CFO) of any business has its challenges, but it's even more difficult to be a CFO of a nonprofit. These individuals are under constant pressure to achieve various tasks -- automate processes, improve productivity, create greater levels of transparency and visibility -- making life very difficult for them.
Luckily, there is light at the end of the tunnel.
Join The NonProfit Times and Intacct Corporation on Dec. 6 at 11:00 AM PST for a free webinar: The Nonprofit CFO’s Survival Guide. Joined by a panel of experts, Abraham Matthew, manager at CliftonLarsonAllen LLP, will bring his 10 years of experience of working with nonprofits to help CFOs better succeed at their craft. Matthew and the panel will be discussing the following topics:
Luckily, there is light at the end of the tunnel.
Join The NonProfit Times and Intacct Corporation on Dec. 6 at 11:00 AM PST for a free webinar: The Nonprofit CFO’s Survival Guide. Joined by a panel of experts, Abraham Matthew, manager at CliftonLarsonAllen LLP, will bring his 10 years of experience of working with nonprofits to help CFOs better succeed at their craft. Matthew and the panel will be discussing the following topics:
- Fund Accounting: Supporting separate, balanced sets of books.
- Multiple Locations and Entities: Addressing centralized and local requirements.
- Controls and Cash Management: Distributing responsibilities while keeping tight controls.
- Grants: Tracking general vs. restricted dollars.
- Reporting and Visibility: Achieving transparency, accountability, and trust.
- Cloud Computing: Taking advantage of cloud computing to meet nonprofits' toughest challenges.
Any nonprofit CFO who is currently having trouble with any of the above topics should mark the date for this webinar on their calendar. Registration is free so sign up today!
Monday, October 15, 2012
Home Depot Founder Wins Philanthropy Prize
The William E. Simon Prize has been awarded every year since 2007 to business leaders who exemplify the principles of philanthropy. Recipients are given $25,000 which is donated to the charity of the winner's choice. Marcus, who co-founded the Home Depot in 1979, chose to give his earnings to the Marcus Autism Center at Children's Healthcare of Atlanta.
The award is given by the Philanthropy Roundtable, the country's leading network of charitable donors, at the request of the William E. Simon Foundation.
"William E. Simon Sr. was a legendary, caring philanthropist, and it is heartwarming that his family continues this great legacy," said Marcus in a statement. "I have never done philanthropy with the objective of qualifying for awards, and it was a surprising and humbling experience to find out I had won this prestigious honor."
Marcus's business accomplishments are impressive, as he helped grow the Home Depot from a single store in Atlanta to a successful enterprise across the country until his retirement in 2002. His philanthropic deeds are also lengthy, including being the main force behind the funding for the Georgia Aquarium, and providing major contributions to medical research in the areas of autism and brain surgery.
"Bernie is strategic, effective and has high expectations for his for-profit and nonprofit investments," said William E. Simon Jr., co-chairman of the William E. Simon Foundation, in a press release. "Like our father, Bernie sets high standards and settles for nothing less. We are thrilled Bernie is the recipient of the 2012 William E. Simon Prize."
Recipients of the William E. Simon Prize must possess the ideals and principles which guides the award's namesake, William E. Simon Sr., the late philanthropist and Secretary of the Treasury under Presidents Richard Nixon and Gerald Ford. Those ideals include personal responsibility, resourcefulness, volunteerism, faith, and helping people to help themselves.
Previous winners of the Prize are Philip and Nancy Anschutz, Ben Carson, S. Truett Cathy, Raymond G. Chambers, Richard and Helen DeVos, Frank J. Hanna III, Roger Hertog, Charles G. Koch, David Robinson, the late John M. Templeton, and the late John T. Walton.
Tuesday, September 18, 2012
Charity Distances Itself From Anti-Muslim Film
The head of a California-based charity tried to distance his organization from an anti-Muslim film that has sparked protests around the globe, saying he was duped into participating in the movie.
The Los Angeles Times reported today that Joseph Nassralla, president of Media for Christ, wrote in a statement on the blog of anti-Muslim advocate Pamela Geller that he first became involved with the film known as "Innocence of Muslims" when its filmmaker, a fellow Egyptian immigrant named Nakoula B. Nakoula, approached him for help. He allegedly told Nassralla that he was working on a film about Christian persecution, and wanted to use Media for Christ's broadcast studio for filming.
Nassralla insisted in his statement that was all he had to do with the film, and that the final product of the movie was completely different than the movie that was described to him. He accused Nakoula of altering the film "without anyone's knowledge, changing its entire focus and dubbing in new dialogue." He also said he was unaware that Nakoula listed Media for Christ on the government documents for the movie.
Despite distancing himself from the movie, Nassralla placed the blame on the violent reaction against "Innocence of Muslims" not on the filmmakers, but on "those who are murdering and rioting." The film has angered many Muslims by depicting the prophet Muhammad as clumsy and a sexual deviant. Those images and other rhetoric in the movie are being blamed for violent protests across the Middle East, including last week's breach of the American embassy in the eastern Libyan city of Benghazi, which resulted in the death of U.S. ambassador Chris Stephens and three others.
Media for Christ, which was established in 2005, runs a satellite television network called The Way TV, which airs sermons and hymns as well as anti-Islamic sentiments. The host of one of its shows, Steve Klein, worked as a script consultant for "Innocence of Muslims."
You can read the full story in The Los Angeles Times.
The Los Angeles Times reported today that Joseph Nassralla, president of Media for Christ, wrote in a statement on the blog of anti-Muslim advocate Pamela Geller that he first became involved with the film known as "Innocence of Muslims" when its filmmaker, a fellow Egyptian immigrant named Nakoula B. Nakoula, approached him for help. He allegedly told Nassralla that he was working on a film about Christian persecution, and wanted to use Media for Christ's broadcast studio for filming.
Nassralla insisted in his statement that was all he had to do with the film, and that the final product of the movie was completely different than the movie that was described to him. He accused Nakoula of altering the film "without anyone's knowledge, changing its entire focus and dubbing in new dialogue." He also said he was unaware that Nakoula listed Media for Christ on the government documents for the movie.
Despite distancing himself from the movie, Nassralla placed the blame on the violent reaction against "Innocence of Muslims" not on the filmmakers, but on "those who are murdering and rioting." The film has angered many Muslims by depicting the prophet Muhammad as clumsy and a sexual deviant. Those images and other rhetoric in the movie are being blamed for violent protests across the Middle East, including last week's breach of the American embassy in the eastern Libyan city of Benghazi, which resulted in the death of U.S. ambassador Chris Stephens and three others.
Media for Christ, which was established in 2005, runs a satellite television network called The Way TV, which airs sermons and hymns as well as anti-Islamic sentiments. The host of one of its shows, Steve Klein, worked as a script consultant for "Innocence of Muslims."
You can read the full story in The Los Angeles Times.
Tuesday, September 11, 2012
Nonprofit CFO Sentenced In Wire Fraud Case
The former chief financial officer of a nonprofit in Knoxville, Tenn. was sentenced to 36 months in federal prison today on charges of wire fraud and money laundering.
According to a report in The San Francisco Chronicle, Cameron J. Potter was also ordered by the U.S. Attorney's Office for East Tennessee to repay the government more than $400,000. Federal investigators charged Potter with using his position as CFO of Southern Alliance for Clean Energy (SACE) to embezzle more than $403,000 in organization funds through fraudulent transactions, counterfeit checks, and diverted receipts. He used the money to pay for personal expenses, such as cars, a second house, and sports memorabilia.
Potter pleaded guilty to the charges a year ago, and was sentenced today by U.S. District Court Judge Thomas W. Phillips.
The prosecutor in the case said that Potter created fake invoices to businesses with names similar to consultants employed by SACE, and paid them with the organization's American Express account. The money was then transferred to his own accounts through an online banking service.
You can read the full story in The San Francisco Chronicle.
According to a report in The San Francisco Chronicle, Cameron J. Potter was also ordered by the U.S. Attorney's Office for East Tennessee to repay the government more than $400,000. Federal investigators charged Potter with using his position as CFO of Southern Alliance for Clean Energy (SACE) to embezzle more than $403,000 in organization funds through fraudulent transactions, counterfeit checks, and diverted receipts. He used the money to pay for personal expenses, such as cars, a second house, and sports memorabilia.
Potter pleaded guilty to the charges a year ago, and was sentenced today by U.S. District Court Judge Thomas W. Phillips.
The prosecutor in the case said that Potter created fake invoices to businesses with names similar to consultants employed by SACE, and paid them with the organization's American Express account. The money was then transferred to his own accounts through an online banking service.
You can read the full story in The San Francisco Chronicle.
Virginia City Council Tackles Nonprofit Tax Exemption
Tax-exempt status was the topic of conversation during a meeting of the Richmond, Va., city council, as members tried to determine which organizations shouldn't have to pay property taxes after a ban on tax-exempt applications was lifted.
Nonprofits in Richmond had been unable to apply for tax-exemption for the past several years because of a moratorium on such applications. But after the historic Byrd Theater encountered economic difficulties, the ban was lifted, setting the stage for the Monday meeting.
According to a report on Richmond CBS affiliate WTVR, Councilman Marty Jewell said during session that he believed nonprofits in the city deserved a break because of the down economy. Councilman Bruce Tyler agreed, remarking that the city potentially footing the bill for some of these organizations is important because of the services they bring to the community.
Councilman Chris Hilbert argued that the moratorium on tax-exemption applications should be reinstated, remarking that the current review process makes it difficult for the city to determine which organizations truly need tax breaks. Hilbert plans to reintroduce the moratorium during an upcoming meeting, according to WTVR.
Tax-exempt organizations often have to pay fees to the government, making what are known as payments in lieu of taxes (PILOTs). The NonProfit Times reported in May that Brown University reached an agreement to double its current payments to the city of Providence, R.I. In addition, a survey from last year showed that 63 percent of nonprofits pay some form of fee to state and local governments.
Fewer than two dozen nonprofits had their tax-exemption applications approved by the end of the meeting, with the remaining groups combining to pay nearly $160,000 in annual property taxes to the city of Richmond. You can read the full story on WTVR's website.
Nonprofits in Richmond had been unable to apply for tax-exemption for the past several years because of a moratorium on such applications. But after the historic Byrd Theater encountered economic difficulties, the ban was lifted, setting the stage for the Monday meeting.
According to a report on Richmond CBS affiliate WTVR, Councilman Marty Jewell said during session that he believed nonprofits in the city deserved a break because of the down economy. Councilman Bruce Tyler agreed, remarking that the city potentially footing the bill for some of these organizations is important because of the services they bring to the community.
Councilman Chris Hilbert argued that the moratorium on tax-exemption applications should be reinstated, remarking that the current review process makes it difficult for the city to determine which organizations truly need tax breaks. Hilbert plans to reintroduce the moratorium during an upcoming meeting, according to WTVR.
Tax-exempt organizations often have to pay fees to the government, making what are known as payments in lieu of taxes (PILOTs). The NonProfit Times reported in May that Brown University reached an agreement to double its current payments to the city of Providence, R.I. In addition, a survey from last year showed that 63 percent of nonprofits pay some form of fee to state and local governments.
Fewer than two dozen nonprofits had their tax-exemption applications approved by the end of the meeting, with the remaining groups combining to pay nearly $160,000 in annual property taxes to the city of Richmond. You can read the full story on WTVR's website.
Wednesday, August 22, 2012
Ex-Nonprofit Executive Charged With Medicaid Fraud
The former executive of a Topeka, Kan.-based nonprofit was charged today with attempting to steal more than $2 million in Medicaid funds, according to a report on WIBW.com.
U.S. Attorney Barry Grissom made the announcement today, charging Jason Sellers with one count of wire fraud in a criminal complaint filed in the U.S. District Court in Topeka.
"Health care fraud drives up the cost for all patients and consumers," Grissom said. "In partnership with the state, my office is working to protect and strengthen the entire health care system."
It is alleged that while Sellers was chief financial officer of Kansas Health Solutions (KHS), he diverted medicaid funds to a sham company he created called Advanced Business Consulting (ABC). He is then said to have billed KHS for information technology services ABC performed, as well as for other personal items such as sports equipment for a local team with which he was associated from 2007-2011. In addition, Sellers allegedly used some of the stolen money to build and refurbish a $375,000 home in Lyndon, Kan.
If convicted, Sellers faces a maximum penalty of 20 years in federal prison and a fine of up to $250,000. You can read the full story on WIBW.com.
U.S. Attorney Barry Grissom made the announcement today, charging Jason Sellers with one count of wire fraud in a criminal complaint filed in the U.S. District Court in Topeka.
"Health care fraud drives up the cost for all patients and consumers," Grissom said. "In partnership with the state, my office is working to protect and strengthen the entire health care system."
It is alleged that while Sellers was chief financial officer of Kansas Health Solutions (KHS), he diverted medicaid funds to a sham company he created called Advanced Business Consulting (ABC). He is then said to have billed KHS for information technology services ABC performed, as well as for other personal items such as sports equipment for a local team with which he was associated from 2007-2011. In addition, Sellers allegedly used some of the stolen money to build and refurbish a $375,000 home in Lyndon, Kan.
If convicted, Sellers faces a maximum penalty of 20 years in federal prison and a fine of up to $250,000. You can read the full story on WIBW.com.
Monday, August 6, 2012
California Considers Nonprofit Mismanagement Bill
The California state Legislature is considering a bill that would give the state attorney general's office more power to crack down on nonprofits that are found to be mismanaging charitable funds.
California Watch reported today that a bill by Assemblyman Mike Feuer (D-West Hollywood) would give the attorney general the ability to take legal action against a charity or fundraiser if it fails to provide the required documents or makes a false statement in application or report. Current law requires the state to prove that there was intent to deceive before taking action.
Organizations would be given a penalty of up to $1,000 per violation after a five days' notice. The bill passed the Assembly, and will be heard in the Senate Appropriations Committee today.
According to analysis by staff from the Assembly Judiciary Committee, the attorney general's office is unable to prevent fraud from occurring with its current powers. The report claimed that this is the case even in instances when concerns are raised about a nonprofit before charitable donations are lost.
The state of California has dealt with many cases of alleged fraud in recent years. In 2010, the attorney general's office reached a settlement with the Association for Firefighters and Paramedics Inc. The state accused the Santa Ana-based organization of spending thousands of dollars meant for burn victims on a Caribbean cruise, trips to resorts, and other personal expenses. The nonprofit denied any wrongdoing in the case.
Bill AB 2327 is very similar to laws that are already in place in other states. The one difference is that the law, if passed, would require fiscal sponsors of charities to have directors' and officers' insurance in case they lose the money the are managing.
You can read the full story in California Watch.
California Watch reported today that a bill by Assemblyman Mike Feuer (D-West Hollywood) would give the attorney general the ability to take legal action against a charity or fundraiser if it fails to provide the required documents or makes a false statement in application or report. Current law requires the state to prove that there was intent to deceive before taking action.
Organizations would be given a penalty of up to $1,000 per violation after a five days' notice. The bill passed the Assembly, and will be heard in the Senate Appropriations Committee today.
According to analysis by staff from the Assembly Judiciary Committee, the attorney general's office is unable to prevent fraud from occurring with its current powers. The report claimed that this is the case even in instances when concerns are raised about a nonprofit before charitable donations are lost.
The state of California has dealt with many cases of alleged fraud in recent years. In 2010, the attorney general's office reached a settlement with the Association for Firefighters and Paramedics Inc. The state accused the Santa Ana-based organization of spending thousands of dollars meant for burn victims on a Caribbean cruise, trips to resorts, and other personal expenses. The nonprofit denied any wrongdoing in the case.
Bill AB 2327 is very similar to laws that are already in place in other states. The one difference is that the law, if passed, would require fiscal sponsors of charities to have directors' and officers' insurance in case they lose the money the are managing.
You can read the full story in California Watch.
Tuesday, July 17, 2012
Bronx Nonprofit Director Accused Of Bribery
An employee at a Bronx, N.Y. nonprofit that manages apartments for poor people, was arrested yesterday on charges of bribery, according to federal authorities.
Satnarine Seebachan, the program director of Bronx Shepherds Restoration Corp., is accused of accepting $100,000 from contractors doing business with the nonprofit. The money was allegedly used to make numerous improvements to his home in Glen Cove, Long Island, according to The New York Daily News.
The indictment presented by federal authorities quotes Saeebachan as allegedly telling one contractor that he would "make it worth his while" by giving out Bronx Shepherds contracts if he performed the free work on his home. The work done on the house included installing marble floors in the foyer, bathroom, and kitchen in 2006 and 2010.
Seebachan pleaded not guilty in a Manhattan Federal Court Monday and was released on $50,000 bond. If convicted, he faces up to 10 years in prison.
You can read the full story in The New York Daily News.
Satnarine Seebachan, the program director of Bronx Shepherds Restoration Corp., is accused of accepting $100,000 from contractors doing business with the nonprofit. The money was allegedly used to make numerous improvements to his home in Glen Cove, Long Island, according to The New York Daily News.
The indictment presented by federal authorities quotes Saeebachan as allegedly telling one contractor that he would "make it worth his while" by giving out Bronx Shepherds contracts if he performed the free work on his home. The work done on the house included installing marble floors in the foyer, bathroom, and kitchen in 2006 and 2010.
Seebachan pleaded not guilty in a Manhattan Federal Court Monday and was released on $50,000 bond. If convicted, he faces up to 10 years in prison.
You can read the full story in The New York Daily News.
Wednesday, June 27, 2012
NPT Editor-In-Chief To Be On Nonprofit Radio
On Friday June 29, our editor-in-chief, Paul Clolery, will be joining Tony on Nonprofit Radio for an exclusive interview. Paul will be discussing a variety of topics of interest to listeners, including what is trending in the sector and his concerns about the future of charities.
Nonprofit Radio will also be talking to Gayle Gifford, author of "How to Make Your Board Dramatically More Effective, Today." She will discuss with Tony about how to make sure your charity's mission is relevant, your CEO is supported, and your board is strong.
Tune into Nonprofit Radio Friday at 1 PM to hear the interview with Paul and Gayle. It should be a great show!
Tuesday, December 20, 2011
Creating A Start-Up Nonprofit Isn't Easy
If you were ever thinking of starting your own nonprofit, take a step back: It's not as easy as it sounds.
In a piece written for The Huffington Post, Marty Zwilling, a start-up expert, explains the complications of starting your own nonprofit. He explains that although most people looking to create a start-up company see nonprofits as the easy route to success, there's a lot that goes into the process. This includes a healthy business model, which was recently outlined in an article on The NonProfit Times website. A nonprofit still has to make money on everything it sells in order to maintain its operating expenses. This is true even if it relies totally on donations.
All this is not to say that you shouldn't try to make your own nonprofit. You just need to be aware of some of the challenges that come with it. Zwelling listed five reasons creating a start-up nonprofit can be a challenge. Here are a few I found most compelling:
In a piece written for The Huffington Post, Marty Zwilling, a start-up expert, explains the complications of starting your own nonprofit. He explains that although most people looking to create a start-up company see nonprofits as the easy route to success, there's a lot that goes into the process. This includes a healthy business model, which was recently outlined in an article on The NonProfit Times website. A nonprofit still has to make money on everything it sells in order to maintain its operating expenses. This is true even if it relies totally on donations.
All this is not to say that you shouldn't try to make your own nonprofit. You just need to be aware of some of the challenges that come with it. Zwelling listed five reasons creating a start-up nonprofit can be a challenge. Here are a few I found most compelling:
- You know that 501(c) form you have to fill out to become tax-exempt? It requires a lot more than just filling out a form, and it can take a long time to be approved. The form has to be accompanied with a $850 fee, and it can take as long as two years to completely finish.
- Start-ups require willing investors, and it can be a challenge to get them interested in a nonprofit since it will be hard to guarantee an excellent return on investment.
- Private start-up companies don't have to disclose their salaries or spending practices to anyone other than the IRS. Nonprofits, on the otherhand, undergo trememndous public scrutiny.
Friday, November 4, 2011
A Nonprofit For Miniature Horses
You've probably heard of people bringing dogs to visit senior citizens and hospital patients, but what about horses? If you're wondering how they get these animals into the rooms to begin with, I have two words for you: Miniature horses.
Mini's Making Miracles, which is the subject of a story in The York Dispatch, is a nonprofit based in York Haven, PA, that brings young miniature horses to local nursing homes and hospitals to help patients. For the founders, Kevin and Vickie Tyler, the organization represents a dream of theirs to turn their love of volunteerism and mini horses into a nonprofit that can improve the morale of patients.
According to the Dispatch, the Tylers spend between $3,000 and $5,000 every month on feed, transportation, vet bills, and insurance costs. It's a hefty salary for a small organization, but Kevin Tyler says he is actively searching for sponsors and volunteers to help offset costs. More information can be found about Mini's Making Miracles on their website.
Mini's Making Miracles, which is the subject of a story in The York Dispatch, is a nonprofit based in York Haven, PA, that brings young miniature horses to local nursing homes and hospitals to help patients. For the founders, Kevin and Vickie Tyler, the organization represents a dream of theirs to turn their love of volunteerism and mini horses into a nonprofit that can improve the morale of patients.
According to the Dispatch, the Tylers spend between $3,000 and $5,000 every month on feed, transportation, vet bills, and insurance costs. It's a hefty salary for a small organization, but Kevin Tyler says he is actively searching for sponsors and volunteers to help offset costs. More information can be found about Mini's Making Miracles on their website.
Tuesday, January 18, 2011
Record Fundraising Levels Expected In Alaska
Record levels of charitable organizations are getting involved in what is known as the 'Pick. Click. Give.' program which forms part of Alaskans' Permanent Fund Dividend or PFD application. The programs make it possible for recipients to donate part of their PFD to a variety of nonprofit groups. Alaskan residents receive an annual check based on oil-punted estates. As much as 386 nonprofit organizations are signed up to receive donations this year, a figure which is up by approximately 6% from the year before. Organizes of the fundraising drive have set a target of $1.5 million, a 50% increase over the previous year.
Many nonprofits stand to benefit
In 2010, about 9,500 of all Alaskans donated a part or all of their dividends as funding for various charitable organizations. The administrative expenditures related to the drive are being covered by the Rasmuson Foundation. Bearing in mind the vast range of charitable groups that are signed up to receive donations, donors are bound to find a cause that tugs a heart-string that they would be able to support with enthusiasm. When people go online to apply for their PFD, they will see the option to participate in the 'Pick. Click. Give' fundraising program.
Many nonprofits stand to benefit
In 2010, about 9,500 of all Alaskans donated a part or all of their dividends as funding for various charitable organizations. The administrative expenditures related to the drive are being covered by the Rasmuson Foundation. Bearing in mind the vast range of charitable groups that are signed up to receive donations, donors are bound to find a cause that tugs a heart-string that they would be able to support with enthusiasm. When people go online to apply for their PFD, they will see the option to participate in the 'Pick. Click. Give' fundraising program.
Tuesday, December 14, 2010
Nonprofits Need To Take Call To Action Over Estate Tax Changes
In the turbulent times of tax restructuring nonprofits are the ones that could be hurt the most by some of the changes that are on the table. These new deals to extend the Bush era tax cuts or some variation of them stand the chance of having a significant financial impact on the donations that many nonprofits rely on to be able to do their good deeds.
Why does estate tax affect nonprofits?
Many nonprofits are funded through government grants and estate taxes are what contribute to those funds many times. With the proposed reductions in estate taxes to only 35% with higher exemption levels the funds, that are critical to many nonprofits success could be cut drastically. The result would be that the wealthiest of American’s would indirectly be taking away the support that is given to people of dire circumstances. A few of these groups are the unemployed, homeless, and single parents. Other groups that would find it more difficult to achieve their goal of helping others would be nonprofits that work towards new beginnings and medical advancements that will help everyone.
How does philanthropy play a role in estate taxes?
One of the first benefits to be threatened is the deductions and their benefits for philanthropists who wish to keep spreading good deeds after they have passed. Without nonprofit groups taking a stand for their passions they could risk losing the funds to continue their valuable work.
Every nonprofit who is concerned about their financial resources must take a stand. Make sure you contact your political representatives and let them know that the estate tax is a vital part of your potential and must remain at a reasonable rate. Don’t undercut your nonprofit’s potential because you didn’t fight against an unreasonably low estate tax.
Why does estate tax affect nonprofits?
Many nonprofits are funded through government grants and estate taxes are what contribute to those funds many times. With the proposed reductions in estate taxes to only 35% with higher exemption levels the funds, that are critical to many nonprofits success could be cut drastically. The result would be that the wealthiest of American’s would indirectly be taking away the support that is given to people of dire circumstances. A few of these groups are the unemployed, homeless, and single parents. Other groups that would find it more difficult to achieve their goal of helping others would be nonprofits that work towards new beginnings and medical advancements that will help everyone.
How does philanthropy play a role in estate taxes?
One of the first benefits to be threatened is the deductions and their benefits for philanthropists who wish to keep spreading good deeds after they have passed. Without nonprofit groups taking a stand for their passions they could risk losing the funds to continue their valuable work.
Every nonprofit who is concerned about their financial resources must take a stand. Make sure you contact your political representatives and let them know that the estate tax is a vital part of your potential and must remain at a reasonable rate. Don’t undercut your nonprofit’s potential because you didn’t fight against an unreasonably low estate tax.
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